Shares of Ally Financial and SVB Financial Group were rising sharply Friday after Wall Street found positives in mixed financial reports from the banks.
Ally's (ticker: ALLY) fourth-quarter earnings and net revenue beat analysts' estimates.
RBC Capital Markets analyst Jon Arfstrom maintained his Outperform rating on shares of the digital bank.
"Heading into the quarter, we expected modest pressure on the margin and deposits costs, but the overall performance was modestly better than anticipated," Arfstrom wrote, highlighting an increase in deposit balances and "better pricing in the loan book."
"All in, we think the core trends in the business look acceptable in a hostile margin and credit environment for the company," he added.
SVB Financial's fourth-quarter earnings missed analysts' forecasts, but net interest income of $1.04 billion rose from a year-earlier $939 million.
Raymond James analyst David Long maintained his Outperform rating on shares of SVB (ticker: SIVB). He praised solid loan growth and a reserve build, while also acknowledging challenges in venture capital and private-equity investment trends, which is leading to continued decline in client funds.
"Net, we continue to believe SVB's unique franchise, low-risk loan portfolio, and excellent long-term growth profile are deserving of a steeper premium valuation," wrote Long.
RBC's Arfstrom also maintained his Outperform rating on SVB, but slightly trimmed the price target to $300 from $302.
Arfstrom said market volatility and an uptick in client spending pushed security losses higher, which impacted quarterly results. He sees headwinds continuing in 2023 but said "there are signs that trends can improve as we progress through the year."
Shares of Ally soared 17.7% to $30.83 on Friday. SVB was jumping 14.6% to $286.53.