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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%
Banks
Credit card interest cap would be 'disaster', Dimon says
JPMorgan Chase CEO Jamie Dimon has said that United States President Donald Trump’s call to cap credit card interest rates “would be an economic disaster”. Trump had demanded that banks add a one-year 10% interest rate cap by 20 January, though it has yet to be implemented. Banking stocks, including JPMorgan Chase, have dropped for much of the last two weeks following Trump’s proposal. “It would remove credit from 80% of Americans, and that is their back-up credit,” said Dimon at the World Economic Forum in Davos. “The people crying the most won’t be the credit card companies,” Dimon said. “It’ll be the restaurants, the retailers, the travel companies, the schools, the municipalities because people will miss their water payments and this payment and that payment.” Dimon also suggested that the proposal should be tested in Vermont and Massachusetts, rather than across the U.S. Massachusetts Senator Elizabeth Warren and Vermont Senator Bernie Sanders, both part of the Democratic caucus, have supported caps on credit card interest rates. Trump called on Congress to pass legislation to cap credit card interest rates during his own Davos address, meanwhile. “I'm asking Congress to cap credit card interest rates at 10%
Banks
Morgan Stanley beats analysts' expectations
Investment banking company Morgan Stanley surpassed analyst expectations in the fourth quarter (Q4), fuelled by a surge in investment banking revenue and debt underwriting fees nearly doubling. For the fourth quarter, net revenues reached US$17.9 billion, compared to $16.2 billion one year ago. This exceeded analysts' expectations of $17.77 billion. This was propelled by investment banking growing 47% to $2.42 billion, from $1.64 billion a year earlier. “Our performance reflects multi-year investments which have contributed to growth and momentum across the Integrated Firm,” Morgan Stanley chairman and CEO Ted Pick said. Net income came in at $4.4 billion or $2.68 per share, up from $3.7 billion or $2.22 per share the same time last year. Analysts expected earnings per share of $2.44. Morgan Stanley’s stock jumped around 6% on Thursday (Friday AEDT) following the report. The wealth management unit posted $8.4 billion in net revenue in the most recent quarter, up from $7.5 billion a year earlier. For the full year, the division generated a record $31.8 billion in net revenue. In the full year revenue rose to $70.6 billion compared to $61.8 billion a year ago. Net income jumped to $16.9 billion or $10.21 p
Banks
Citigroup dealmaking powers profit beat
A rebound in dealmaking, steady demand from corporate clients, and progress on a long-running overhaul helped Citigroup Inc top profit expectations in the fourth quarter—offering fresh evidence that Chief Executive Officer Jane Fraser’s turnaround plan is gaining traction. After a slow start to last year when tariffs, market uncertainty - and a U.S. government shutdown - sidelined corporate activity, confidence returned in the second half and Citi’s results reflect a broader shift across the banking industry. Companies began dusting off mergers, acquisitions and capital-raising plans, and banks were quick to benefit. For Citi, investment banking was the standout, with fees jumping 35% from a year earlier, fuelled by stronger advisory and debt capital markets activity. Revenue in the bank’s core banking division surged 78%, and Citi posted record revenue from mergers and acquisitions (M&A) advisory work in 2025. Across the industry, global investment banking revenue climbed to nearly US$103 billion, making it the second-strongest year on record after 2021. This resurgence helped Citi deliver adjusted earnings of US$1.81 per share in the fourth quarter, comfortably ahead of analyst expectations. Revenue rose

Banks
Bank of America client assets reach record $6.5 trillion
Bank of America Corporation (BofA) has reached a record US$6.5 trillion in total client balances across its wealth and consumer segments - a milestone characterised by resilient consumer spending and strong market performance. The banking giant reported net income of $7.6 billion for Q4 2025 - a 12% increase compared to the prior-year period - capping what Chair and Chief Executive Officer Brian Moynihan described as a strong year of earnings. Full-year net income reached $30.5 billion, up 13% from 2024, as the firm successfully navigated a shifting interest rate environment while maintaining disciplined expense management. Diluted earnings per share (EPS) for the quarter stood at $0.98, surpassing analyst expectations of $0.96 and marking an 18% jump from Q4 2024.Quarterly metricsManaged revenue for Q4 reached $28.4 billion, a 7% year-on-year increase. This growth was spearheaded by net interest income (NII), which rose 10% to $15.9 billion on a fully taxable-equivalent basis. Expansion was driven by higher loan and deposit balances alongside fixed-rate asset repricing - which helped mitigate the impact of lower benchmark rates. Asset quality remained a pillar of strength, with the provision for credit losses to
Banks
Trump announces 10% credit card interest rate cap
United States President Donald Trump has announced a one-year cap on credit card interest rates of 10% effective 20 January 2026. He made the announcement on Truth Social but did not comment on how the plan would be implemented or how he planned to ensure companies complied. In a post on the social media platform, he said the new credit card interest rates would improve affordability. “Please be informed that we will no longer let the American Public be “ripped off” by Credit Card Companies that are charging Interest Rates of 20 to 30%,” he said. Trump initially made the pledge to lower credit card interest rates during the 2024 presidential election campaign, but analysts dismissed it at the time as such a step required congressional approval. This occurred as American credit card debt hit a record of more than US$1.1 trillion, reaching US$1.7 trillion in the third quarter of 2024, growing from US$770 billion trillion Lawmakers from the Democratic and Republican parties have raised concerns about high rates and called for them to be addressed. When Trump did not initially live up to his promise, left-leaning senators, including Bernie Sanders and Josh Hawley, introduced a bipartisan bill in February 2025 to c
Banks
Citi loses US$1.2bn on sale of Russian unit
Citigroup has disclosed it will lose US$1.2 billion (A$1.8 billion) on the sale of its Russian unit, AO Citibank, to Renaissance Capital. Citi had obtained the internal approvals required to proceed with the planned sale, which was expected to be signed and closed in the first half of 2026, the company said in a press release. The accounting treatment of the transaction would result in a pre-tax loss for the fourth quarter of 2025 of about $1.2 billion ($1.1 billion after-tax), it said in a Form 8K. This consists of $1.6 billion of currency translation losses, partially offset by $400 million of gains from the derecognition of the fully reserved net investment and the proceeds of the future sale. The American financial services giant announced in 2022 it was winding down its consumer banking and local commercial banking operations in Russia as part of its ongoing efforts to reduce its operations and exposure in the country. Last month, Russian President Vladimir Putin allowed Renaissance Capital to buy Citi’s Russian operations. AO Citibank conducts Citi’s remaining operations in Russia and is reported within its Services, Markets, Banking and All Other - Legacy Franchises businesses. The sale was expected to
Banks
ASIC secures record fines against ANZ over misconduct
Fines imposed on Australia and New Zealand Banking Group (ANZ) for widespread misconduct and systemic risk failures affecting the Australian Government and at least 65,000 retail customers have been increased by A$10 million to A$250 million ($US165 million). The Australian Securities and Investments Commission (ASIC) said these were the largest combined penalties it had secured against a single entity. In doing so the Federal Court increased the penalty for ANZ’s inaccurate reporting of secondary bond market turnover data by $10 million to $50 million. Justice Jonathan Beach ordered ANZ to pay:$135 million for institutional and markets misconduct relating to the management of a $14 billion government bond deal and inaccurate reporting of secondary bond market turnover data to the Australian Government$40 million for failing to respond to hundreds of customer hardship notices, sometimes for more than two years, and failing to have proper hardship processes$40 million for making false and misleading statements about savings interest rates, and failing to pay the promised rate to tens of thousands of customers, and$35 million for failing to refund fees charged to thousands of dead customers and not responding to loved ones