Let’s dig into the relative performance of Bank of America (NYSE: BAC) and its peers as we unravel the now-completed Q1 diversified banks earnings season.

At their core, diversified banks take in deposits and engage in various forms of lending, which means revenue is generated through interest rate spreads (difference between loan and deposit rates) and fees. Other revenue comes from adjacent services such as wealth management, card and account fees, and products such as annuities. These institutions benefit from rising interest rates that improve NIMs (net interest margins), digital transformation reducing operational costs, and expanding wealth management services as populations age. However, they face headwinds including fintech competition disrupting traditional models (how disruptive is crypto?), stringent regulatory requirements increasing compliance costs, and cybersecurity threats requiring substantial technology investments. Economic downturns also pose risks through potential loan defaults and compressed margins during accommodative monetary policy periods.

The 7 diversified banks stocks we track reported a mixed Q1. As a group, revenues beat analysts’ consensus estimates by 1%.

While some diversified banks stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 3.8% since the latest earnings results.

Bank of America (NYSE: BAC)

Tracing its roots back to 1784 and now serving approximately 67 million consumer and small business clients, Bank of America (NYSE: BAC) is a global financial institution that provides banking, investing, asset management, and risk management products and services to individuals, businesses, and governments.

Bank of America reported revenues of $30.37 billion, up 7% year on year. This print exceeded analysts’ expectations by 1.2%. Overall, it was a satisfactory quarter for the company with a beat of analysts’ EPS estimates but a slight miss of analysts’ tangible book value per share estimates.

Unsurprisingly, the stock is down 3.1% since reporting and currently trades at $51.70.

Is now the time to buy Bank of America? Access our full analysis of the earnings results here, it’s free.

Best Q1: Citigroup (NYSE: C)

With operations in nearly 160 countries and a history dating back to 1812, Citigroup (NYSE: C) is a global financial services company that provides banking, investment, wealth management, and payment solutions to consumers, corporations, and governments.

Citigroup reported revenues of $24.66 billion, up 14.1% year on year, outperforming analysts’ expectations by 5.1%. The business had a very strong quarter with a solid beat of analysts’ revenue and EPS estimates.

Citigroup achieved the biggest analyst estimates beat and fastest revenue growth among its peers. Although it had a fine quarter compared to its peers, the market seems unhappy with the results as the stock is down 1.2% since reporting. It currently trades at $124.76.

Is now the time to buy Citigroup? Access our full analysis of the earnings results here, it’s free.

Weakest Q1: Wells Fargo (NYSE: WFC)

Founded during the California Gold Rush in 1852 to provide banking and express delivery services to miners and merchants, Wells Fargo (NYSE: WFC) is a diversified financial services company that provides banking, lending, investment, and wealth management services to individuals and businesses.

Wells Fargo reported revenues of $21.52 billion, up 6.4% year on year, falling short of analysts’ expectations by 1.2%. It was a softer quarter as it posted a significant miss of analysts’ EPS and net interest income estimates.

Wells Fargo delivered the weakest performance against analyst estimates in the group. As expected, the stock is down 11.8% since the results and currently trades at $76.38.

Read our full analysis of Wells Fargo’s results here.

Truist Financial (NYSE: TFC)

Born from the 2019 merger of BB&T and SunTrust in one of the largest banking combinations since the 2008 financial crisis, Truist Financial (NYSE: TFC) is a bank holding company that offers a wide range of financial services including consumer and commercial banking, wealth management, insurance, and lending solutions.

Truist Financial reported revenues of $5.20 billion, up 5% year on year. This result was in line with analysts’ expectations. Aside from that, it was a mixed quarter as it also produced a beat of analysts’ EPS estimates but a slight miss of analysts’ net interest income estimates.

Truist Financial had the slowest revenue growth among its peers. The stock is down 2.4% since reporting and currently trades at $48.25.

Read our full, actionable report on Truist Financial here, it’s free.

JPMorgan Chase (NYSE: JPM)

Tracing its roots back to 1799 when its earliest predecessor was founded by Aaron Burr, JPMorgan Chase (NYSE: JPM) is a leading financial services company offering investment banking, consumer banking, commercial banking, and asset management services globally.

JPMorgan Chase reported revenues of $50.54 billion, up 9.8% year on year. This number beat analysts’ expectations by 2.2%. More broadly, it was a satisfactory quarter as it also logged an impressive beat of analysts’ revenue estimates but a slight miss of analysts’ tangible book value per share estimates.

The stock is down 2.8% since reporting and currently trades at $305.

Read our full, actionable report on JPMorgan Chase here, it’s free.

Market Update

Late in 2025 into early 2026, there was hand wringing around artificial intelligence. For software companies, the fear was that AI would erode pricing power and compress margins as new tools made it easier to replicate what once required expensive enterprise platforms. Crypto investors had their own version of the same anxiety: if AI agents could trade, allocate capital, and manage wallets autonomously, what exactly was the long-term value of today’s crypto infrastructure?

These concerns triggered a noticeable rotation away from these sectors and into safer havens. But markets rarely dwell on one narrative for long. Spring 2026 came, and the focus shifted abruptly from technological disruption to geopolitical risk. The US’ conflict with Iran became the dominant driver of market psychology, and when geopolitics takes center stage, the script changes quickly. Investors stop debating growth rates and start worrying about oil supply, inflation, and global stability.

Want to invest in winners with rock-solid fundamentals? Check out our Strong Momentum Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.