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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%

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