Custody Bank Stock Performance for Q4: Comparing SEI Investments (NASDAQ:SEIC)

Q4 Custody Bank Earnings Recap

With the frenzy of earnings season winding down, let's revisit some notable fourth-quarter performances among custody banks. Our review begins with SEI Investments (NASDAQ:SEIC).

Custody Banks: Industry Overview

Custody banks play a crucial role in safeguarding assets and offering services such as settlement, accounting, and regulatory compliance for institutional clients. The sector is seeing growth opportunities thanks to rising global assets under custody, increased demand for data-driven insights, and the integration of blockchain technology to streamline settlements. However, the industry faces hurdles including fee compression from major clients, significant investments in technology, and heightened competition from both established firms and new fintech entrants.

Q4 Performance Highlights

Across the 16 custody banks we monitor, fourth-quarter revenue collectively surpassed analyst forecasts by 2.4%. Despite this positive financial performance, share prices have struggled, with an average decline of 5.3% since earnings were released.

SEI Investments (NASDAQ:SEIC)

Established in 1968 as Simulated Environments Inc., SEI Investments began by using computer simulations to train bank loan officers. Today, SEI delivers technology platforms, investment management, and operational solutions to financial institutions, wealth managers, and investors.

SEI Investments posted fourth-quarter revenue of $607.9 million, marking a 9.1% increase from the previous year and exceeding analyst expectations by 1.4%. While the company narrowly outperformed revenue estimates, it fell short of analyst projections for assets under management.

CEO Ryan Hicke commented: "We wrapped up 2025 with an outstanding fourth quarter, concluding one of SEI's best years. The results showcase robust revenue growth, improved margins, and exceptional sales across the company. Importantly, these achievements stem from consistent execution of our strategy and the strength of our integrated enterprise model, rather than reliance on any single business or one-off event."

Following the earnings announcement, SEI's stock has dropped 4.9%, currently trading at $81.84.

Top Q4 Performer: Franklin Resources (NYSE:BEN)

Franklin Resources, operating under the Franklin Templeton brand since 1947, is a global investment management company serving individuals, institutions, and financial advisors worldwide.

In the fourth quarter, Franklin Resources reported revenue of $1.75 billion, up 3.8% year-over-year and beating analyst estimates by 1.9%. The company delivered a standout quarter, surpassing both earnings per share and revenue expectations.

The market responded positively, with Franklin Resources' stock rising 5% since the report and currently priced at $27.17.

Lowest Q4 Performer: Voya Financial (NYSE:VOYA)

Voya Financial, spun off from ING in 2013 and named to evoke the idea of a "voyage," specializes in workplace benefits and savings solutions for U.S. employers, supporting employees with retirement plans and insurance products.

Voya Financial reported fourth-quarter revenue of $2.01 billion, up 5.7% from the previous year, aligning with analyst expectations. However, the company missed earnings per share targets, resulting in a slower quarter.

As anticipated, Voya's stock has fallen 7.5% since the earnings release, now trading at $69.85.

Invesco (NYSE:IVZ)

Founded in 1935 and known for launching the first mutual fund focused on capital growth, Invesco is a global asset manager offering solutions across equities, fixed income, alternatives, and multi-asset strategies.

Invesco reported fourth-quarter revenue of $1.26 billion, an 8.8% increase year-over-year and 0.9% above analyst expectations. The quarter was strong, with the company beating both EBITDA and earnings per share estimates.

Despite these results, Invesco's stock has declined 6.5% since the earnings announcement, currently trading at $26.77.

Ameriprise Financial (NYSE:AMP)

Ameriprise Financial, established in 1894 and separated from American Express in 2005, offers financial planning, wealth management, asset management, and insurance products to help clients reach their financial objectives.

Ameriprise Financial reported fourth-quarter revenue of $4.92 billion, up 10.2% year-over-year and beating analyst forecasts by 3.6%. The company delivered a robust quarter, exceeding both revenue and earnings per share estimates.

Following the earnings report, Ameriprise Financial's stock is down 4.1%, now trading at $479.16.

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