State Street Stock made a significant jump of 4.8% to $77.90 during Friday trading, marking its highest increase since December 7, 2022, when it experienced an 8.2% gain. Another bank stock, Ally Financial, saw an even more impressive surge of 9.8%, on track for its largest percentage increase since January 20, 2023, when it soared 20%.
What’s Behind the Positive Momentum?
The surge in these bank stocks, however, seems to be driven by factors that go beyond their financial performances.
Similarly, Ally Financial surpassed expectations with its adjusted earnings and revenue for the fourth quarter. In addition to this positive news, Ally and Synchrony Financial have entered into an agreement for Synchrony to acquire Ally’s point-of-sale financing business. This acquisition includes relationships with nearly 2,500 merchant locations and supports over 450,000 active borrowers in home improvement services and healthcare.
Positive Outlook for Ally
Ally Financial anticipates that the sale of its point-of-sale financing business will fortify its capital position while making a “modestly accretive” impact on tangible book value and earnings per share in 2024. The transaction is set to conclude within the first quarter of this year.
Other regional banks also reported their earnings on Friday, with Regions Financial witnessing a 2.5% increase in stock, while Comerica experienced a slight dip of 1.2% and Fifth Third Bancorp observed a modest increase of 0.8%.