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UniCredit bids to raise Commerzbank stake above 30%
Italian banking group UniCredit has launched a EU€35 billion (A$56.95 billion) bid to increase its stake in Germany’s Commerzbank above 30%, paving the way for takeover talks despite strong opposition from the German government. UniCredit currently holds a 26% stake in Commerzbank, with an additional 4% held by total return swaps. Shareholders with a stake higher than 30% are required to make a takeover bid under German law. “The offer is designed to overcome the 30% cliff-edge that exists under German takeover law and foster constructive engagement with Commerzbank and its stakeholders in the coming weeks,” said UniCredit. “It is expected that UniCredit will achieve a stake in Commerzbank in excess of 30% without reaching control.” A voluntary exchange offer will be formally launched at the beginning of May, UniCredit said, with an offer period of 4 weeks. If the offer is approved, it will be completed by the first half of 2027. Germany’s government, which owns a 12.5% stake in Commerzbank, has strongly opposed UniCredit’s attempts to increase its stake. “The ‌federal government's position is very clear: From our perspective, a hostile takeover would be unacceptable,” a government spokesperson said this week. Germa
Banks
Fed closes book on Wells Fargo fake accounts action
The Federal Reserve Board has ended its enforcement action against Wells Fargo after the bank met all the conditions required of it. The Fed said the bank was required under the enforcement action to demonstrate that improvements to its governance and risk management program had made the program effective, and to have completed two third-party reviews of these improvements. “This remediation work spanned nearly a decade. The original enforcement action also imposed an asset cap which was removed in 2025 when the firm satisfied the conditions for removal,” the central bank said. Wells Fargo acknowledged but did not comment on the Fed statement. The asset cap, which represented the first time the Fed had imposed such a penalty, limited the bank’s growth for seven years. Piper Sandler bank analyst Scott Siefers said the market had largely moved on from these regulatory issues given the ⁠cap was lifted last year. "But the termination still represents an important psychological victory in that it was this order that first installed the ⁠asset cap. Thus, even if the stock doesn’t react, this is great to have in the rear view," Siefers wrote in a note quoted by Reuters. The scandal that came to light in 2016 arose wh
Banks
Big-four bank rally continues to outrun earnings growth
While the big-four ASX banks maintain strongish operational performance, lingering concerns over lofty valuations – relative to key metrics - suggests the likelihood of shares unravelling in 2026 is disproportionately high. As of February 2026, FN Arena broker consensus suggests the Big Four’s 12-month target prices are heading for a necessary 6% to 27% correction. While Commonwealth Bank (ASX: CBA) faces the most bearish outlook with a 27% implied fall to target, ANZ Bank (ASX: ANZ) is considered closest to fair value, requiring only a 6% decline. Unjustified valuationsDespite posting combined profits of $11.3 billion and resilient capital during the latest reporting period, analysts believe the average forward P/E of around 21x - nearly 43% above the 10-year historical average – is looking increasingly unjustified. While lingering concerns over valuations are by no means new, the Big Four continue to push higher after surpassing consensus cash earnings forecasts by 4–11% in their February 2026 reporting. Over the last 12 months share in Commonwealth Bank (ASX:CBA), which trade at the most lofty valuations - forward P/E ratio as high as 26x to 31x – has jumped 16%, while shares in Westpac (ASX: WBC), ANZ Bank (ASX: A
Banks
AI will reshape jobs at JPMorgan: Dimon
JPMorgan Chase chief executive Jamie Dimon has warned that artificial intelligence (AI) will reshape jobs inside the bank - and potentially across the broader economy - even as the lender pours almost US$20 billion a year into new technology. Speaking at the bank’s investor day in New York, Dimon said management has already begun moving staff whose roles are affected by automation into other positions. Some jobs have been displaced by AI, he conceded, but the bank intends to retrain and redeploy those workers rather than simply cut them loose. The numbers show how that transition is playing out. Headcount has held broadly steady at just over 318,000, yet the mix is shifting. Operations and support roles have declined modestly, while client-facing and revenue-generating positions have grown. The bank says technology has allowed each operations employee to manage more accounts, lowered fraud-handling costs and lifted software engineer productivity. Generative AI - systems that can create text, code or images from prompts - is now embedded in customer service and internal technology teams. Tools developed by firms such as OpenAI and Anthropic are being used through JPMorgan’s internal AI platform. Dimo
Banks
Suncorp earnings battered by natural disasters
Suncorp Group has fallen well below cash earnings estimates for its first-half of the year earnings report, released today. The Australian-based insurer faced a heavy drop in cash earnings, down by 67%, after a year filled with natural disasters across both Australia and New Zealand. In the six months to December, there were nine natural disasters across both countries, seeing its natural hazard expenses allowance blown to more than double the year before, coming in at $1.32 billion. Gross written premium for 2026 was also downgraded, to “the bottom of the mid-single digits range", despite rising 2.7% for the earnings period, with the insurer's consumer portfolio doing particularly well at 6.3%. Profit landed at $263 million, compared to $1.10 billion the same time last year. Shares took a hit as a result of these shaky results, dropping to the lowest level since 2024 on Wednesday. "Suncorp's 1H26 reported profits and shareholder returns have been challenged by an elevated level of natural hazard costs and lower investment returns over the half," said CEO Steve Johnston on the report results and string of natural disasters. “These events continue to underscore our purpose and the important role we play in our

Banks
NAB profits jump in Dec quarter, shares reach new high
National Australia Bank (NAB) profits surged last quarter amid solid growth in both loans and deposits, with shares reaching record highs today. Unaudited cash earnings rose 16% year-over-year to A$2.02 billion in the December quarter. Underlying profit was up 11% to $3.1 billion, and statutory net profit spiked 30% to $2.2 billion. “We have started FY26 strongly. Underlying profit rose 12% compared with the 2H25 quarterly average, driven by increases across each of our customer facing divisions and a supportive Australian economic environment,” said NAB CEO Andrew Irvine. “Pleasingly, asset quality outcomes also improved over 1Q26 and we have maintained appropriate balance sheet settings.” Total gross loans and acceptances increased 6% to $792.5 billion. Business loans grew by 7% to $336.2 billion, while housing loans were up 5% to $442.4 billion. Customer deposits climbed 6% to $667.5 billion. The bank’s Common Equity Tier 1 ratio was 11.48%, falling from 11.70% in the September quarter. This was partly due to payments of its FY2025 final dividend, NAB said. Net interest income increased by 10% to $4.6 billion. Operating income was up 8% to $5.6 billion, while operating expenses grew by 5% year-over-year.
Banks
CBA shares surge as half year profit beats expectations
Commonwealth Bank of Australia (CBA) has reported a 5% increase in net profit after tax (NPAT) to $5.412 billion for the first half of the 2026 financial year (H1 FY26), with shares rallying 7.9% by 12:15 pm AEDT (1:15 am GMT). Australia’s largest company said cash NPAT grew 6% to A$5.445 billion (US$3.85 billion) and cash earnings per share (EPS) rose 6.1% to 19 cents, on revenue which rose 6% to $15 billion in the half year ended 31 December 2025. The bank said NPAT was supported by lending and deposit volume growth in its core businesses, which were partly offset by lower margins and higher operating expenses primarily due to inflation and a continued investment in technology. Directors declared an interim dividend of $2.35, up 4% on a year earlier, to be paid on 30 March to shareholders on record on 19 February.Source: Commonwealth Bank of AustraliaThe net interest margin eased four basis points to 2.04%, mainly due to home lending competition, lower Treasury and Markets income, partly offset by higher earnings on the replicating portfolio and favourable funding mix from strong growth in at-call deposits. Operating expenses rose 5% to $6.72 billion as a result of inflation, increased investment in technology, and a
Banks
Capital One expenses rise in Q4, will buy Brex
Capital One missed earnings estimates last quarter amid a sharp rise in expenses, and said it would acquire payments company Brex. Earnings per share were US$3.86, up from $3.09 one year ago but below Visible Alpha estimates of $4.14. Revenue grew by 1% to $15.58 billion, passing estimates of $15.5 billion. "Our fourth quarter and full year results reflect solid top line growth and strong and stable credit performance," said Capital One CEO Richard Fairbank. "Years of strategic preparation and our choices to consistently invest to sustain long-term growth and returns enable our results and put us in a strong position going forward. I’m struck by the number and quality of the opportunities we have before us.” Non-interest expenses rose 13% to $9.34 billion, driven by a 38% increase in marketing expenses and 8% growth in operating expenses. Capital One’s provision for credit losses grew 57% year-over-year to $4.14 billion, with net charge-offs of $3.83 billion. Its CET1 capital ratio was 14.3% at the end of the quarter. Pre-tax income from continuing operations was $2.10 billion, up 44%. Capital One will buy Brex for $5.15 billion, the company said, including 50% cash and 50% stock. The purchase is set to close
Banks
CBA tops brand ranks but investors unconvinced
Commonwealth Bank of Australia (ASX: CBA) may well be Australia’s most valuable brand, according to data from Brand Finance, but the country's largest listed stock is seriously on the nose with investors and there’s no sign of this changing any time soon. Given the bank’s weighting on the ASX200 index - accounting for a whopping 10% by market cap – it’s easy to conclude why brokers struggle to see the main Board of the Australian bourse delivering similar mouthwatering returns as last year. What the market doesn’t like about CBA is the glaring gap between its high valuation - which has afforded it the moniker the world's most expensive bank - and its earnings. This explains why the consensus on Commbank is Strong Sell, and there are currently no Buy recommendations from the majority of analysts. The banking giant has enjoyed ‘share market darling’ status since enjoying a stellar run up from a low of around $53 early March 2020 to a peak of around $192 early June last year. However, since then, the bank has bounced around 21% lower and is currently down 4.8% in the last month. While the CBA share price is down around 5% in the last year – 8.3% lower in CY26 so far - its global peers are up on average around 7.59%