Financial services

Financial services
Amex upgrades guidance after Q3 profit increase
American Express (Amex) has reported a 16% increase in net income for the third quarter of the 2025 financial year (Q3 FY25) and raised its full-year revenue and profit forecasts. The global financial services company said net income was US$2.90 billion (A$4.47 billion) in the quarter ended 30 September compared with $2.51 billion in the previous corresponding period (pcp). Amex said diluted earnings per share (EPS) surged 19% to $4.14 while revenue net of interest expense jumped 11% to a record $18.43 billion. The revenue increase was mainly due to higher card member spending, higher net interest income supported by revolving loan balance growth, and strong fee growth. Describing it as a” a very strong quarter” Chairman and Chief Executive Officer Stephen Squeri said member spending growth accelerated to 9%, or 8% on a currency-adjusted basis, and its credit metrics remained best-in-class. “The successful launch of our updated U.S. Consumer and Business Platinum Cards reinforces our leadership in the premium space,” he said in a press release. “The initial customer demand and engagement exceeded our expectations, with new U.S. Platinum account acquisitions doubling compared to pre-refresh levels. “Given our s
Financial services
Fintech platform Wealthfront files for IPO
Financial technology platform Wealthfront has filed for an initial public offering, as the sector sees a burst of IPO activity. The company will be listed on the Nasdaq under the ticker symbol “WLTH”. Wealthfront was founded in 2008 and offers automated portfolios of stocks and bonds. “We were among the first digital-only financial solutions platforms, and we pioneered using automation to offer low-cost diversified portfolios,” Wealthfront wrote in a Securities and Exchange Commission filing. “Our clients are primarily digital-native high earners who prioritise savings and wealth accumulation,” wrote Wealthfront. “As of July 31, 2025, we had over 1.3 million funded clients, and $88.2 billion in platform assets.” Wealthfront has not yet determined the number of shares it will offer and their price range, the company said. Goldman Sachs and JP Morgan will act as lead book-running managers. Citigroup, Wells Fargo Securities, and RBC Capital Markets will also join as active book-running managers. The platform reported $194.45 million in net income in the fiscal year to 31 January, up from $76.97 million year-over-year. Total revenue was $308.86 million, rising from $216.71 million. Its last funding round was in 20
Financial services
US finance firms invest US$1.7bn in the UK
United States financial firms have invested £1.25 billion (US$1.69 billion) in the UK ahead of a state visit by President Donald Trump. The investment from firms like PayPal, Bank of America, Citigroup, and S&P Global is expected to create 1,800 jobs across London, Edinburgh, Belfast, and Manchester, and deepen transatlantic financial ties, according to the British Government’s Department for Business and Trade. “By working with our allies, we are creating jobs here,” British Prime Minister Keir Starmer said. As part of these plans, the Bank of America will open its first operation in Northern Ireland in Belfast, creating 1,000 jobs. S&P Global also plans to invest over £4 million in Manchester to support 200 permanent jobs. Citigroup will invest £1.1 billion across its UK operations. BlackRock is expected to allocate £7 billion to the UK market next year and has opened a new office in Edinburgh, nearly doubling its workforce. "These investments reflect the strength of our enduring 'golden corridor' with one of our closest trading partners," said Britain's trade minister, Peter Kyle. According to the British government, the deal is worth up to £20 billion in trade between the UK and the U.S. Washington said
Financial services
CBA enjoys big payday from hot Klarna IPO
Commonwealth Bank of Australia (CBA) has reaped big windfall gains from the strong sharemarket debut of Klarna. Shares in the Swedish buy now, pay later company jumped 30% when they started trading on the New York Stock Exchange on Wednesday (Thursday AEST), valuing it at US$19.65 billion (A$29.7 billion). The share price (NYSE: KLAR) closed at $45.82 after opening at $52.00 and trading between $45.21 and $57.20 following the oversubscribed initial public offering (IPO) in which the shares were sold to investors at $40 each. Australia’s largest bank has invested US$350 million in Klarna for a stake which was valued at $1.2 billion in a preliminary prospectus lodged with the Securities and Investments Commission (SEC) last week. CBA intended to sell shares worth about $100 million in the IPO, leaving it with a 4.7% stake, according to SEC filings. Launching a partnership with the Swedish company in 2020, CBA Chief Executive Officer Matt Comyn said customers could access Klarna through the CBA app to shop online. As the tie-up did not yield the benefits the Australian bank hoped for, and CBA has been offloading minority shareholdings, analysts expect it to sell down the stake when allowed. Klarna CEO and co-foun
Financial services
Klarna seeks US$14bn public listing valuation
Swedish firm Klarna is aiming for a US$14 billion (A$21.37 billion) valuation on its long-awaited United States public listing. The company plans to offer 34,311,274 ordinary shares priced between US$35 and $37 each in a bid to raise up to $1.27 billion. Klarna will offer 5.56 million of those shares, while the remaining roughly 28.8 million will be put forward by existing shareholders who are selling their stock. The company will list shares on the New York Stock Exchange under the symbol “KLAR”. The Swedish fintech company drew investor attention as its valuations rose $5.5 billion to $45 billion in just two years, thanks to three funding rounds between mid-2020 and 2021. This has since dropped 85% to $6.7 billion in 2022, with the company blaming macroeconomic conditions linked to Russia’s invasion of Ukraine for the slump. Klarna was founded in 2005 and is best known for its buy now, pay later model, which allows consumers to split purchases into instalments and has looked to expand into products like debit cards and deposit accounts. Revenue for the company rose 20% year-on-year to $823 million during the June quarter. However, Klarna also posted a net loss of $53 million, increasing from the same period las

Financial services
Intuit sees growth across segments, but guidance lags
Financial technology company Intuit beat estimates on revenue and earnings per share after seeing growth across segments, but forecast lower-than-expected increases next quarter. Revenue was US$3.83 billion last quarter, up 20% year-over-year and passing LSEG estimates of $3.75 billion. Adjusted earnings per share rose 38% to $2.75, above estimates of $2.66. “We had an exceptional fiscal 2025 with 20% growth in the fourth quarter and 16% growth for the full year,” said Intuit CEO Sasan Goodarzi. “We saw outstanding execution across our platform, driving breakthrough adoption in assisted tax, introducing transformative AI agents across our business platform, and building our mid-market go-to-market capabilities, all while driving strong margin expansion,” said Intuit CFO Sandeep Aujla. Operating income was US$1.02 billion last quarter, increasing by 20%. Net income was $381 million, up from a loss of $20 million. Revenue for the Global Business Solutions segment grew by 16% across the fiscal year, reaching US$11.1 billion. QuickBooks Online Accounting revenue was up 22%, which the company credited to higher effective prices and customer growth. While Online Services revenue increased by 19% last fiscal year, the s
Financial services
Economic chaos warrants rethink: Bridgewater's Dalio
Just as a stopped clock is right twice a day, the forecasts and outlooks from the contrarian commentators will eventually – if you wait long enough – align with what the market is really trying to tell us. Trouble is, sometimes the market becomes so immune to certain economists or market forecasters getting it wrong that everything they say is taken with a huge grain of salt. Here in Australia, high-profile Warren Hogan of Judo Bank is one economist who almost relishes having a counter view to most of his peers. Moving offshore, Ray Dalio the billionaire founder of hedge fund leviathan Bridgewater Associates, like Hogan, is never shy to run an alternative view of the market up the economic flagpole for the world to chew on. So with markets hitting record highs, debt warnings sounding ominous harbingers of things to come, and artificial intelligence (AI) reshaping everything, Azzet focused on the latest nostrums from Bridgewater Associates’ self-imposed market oracle.U.S. debt warning heightens base case for gold and bitcoinAdmittedly, finding United States economists genuinely concerned about America’s runaway debt situation isn’t hard. However, Dalio has magnified that concern by warning that the U.S. economy’s ballo
Financial services
SGH shares sink despite profit lift, growth forecast
Diversified investment company SGH has posted a 9% increase in net profit after tax (NPAT) to $924 million for the 2025 financial year and forecast similar growth in the current year. The company said earnings before interest and tax (EBIT) increased 8% to $1.537 billion on revenue, which edged 1% higher to $10.744 billion in the 12 months ending 30 June 2025, but underlying earnings per share (EPS) eased 2% to $2.27. The company declared a fully franked final dividend of 32 cents per share, compared with 30 cents a year earlier, to be paid on 10 October to shareholders registered on 12 September, bringing total FY25 dividends to 62 cents, compared with 53 cents. SGH, about 61% owned by businessman Kerry Stokes, said it expected to deliver low to mid single-digit percentage growth in EBIT in FY26, supported by the margin improvements achieved and robust customer activity across core market exposures. The market reacted negatively to the result with SGH (ASX: SGH) shares falling $4.66 (8.99%) to $47.20 at the time of writing, capitalising the company at $19.38 billion, after ranging between $45.60 and $49.04. Managing Director and Chief Executive Officer Ryan Stokes said EBIT growth was primarily driven by SGH’s buil
Financial services
White House eyes IPOs for Fannie Mae and Freddie Mac
The White House has suggested kicking off public offerings for Fannie Mae and Freddie Mac later this year, according to a senior administration official. Now, some of Trump’s biggest supporters want them returned to the public market, in a share sale that could generate tens of billions of dollars for the government, as the combined value of Fannie and Freddie amounts to US$500 billion, according to the anonymous government official. The mortgage finance giants have been under government control since 2008 after being rescued and put under conservatorship due to being crucial to the mortgage market. They were created by Congress to support the housing market and ensure affordable mortgage financing, but crumbled after being crushed by the financial crisis before being bailed out by taxpayer funds. In return, the Department of Treasury received preferred shares, which paid billions of dollars in dividends over the years. Due to the U.S. mortgage market becoming healthier, there have been efforts to return them to private control, including during Trump’s first term, but they’ve failed to gain traction. “While Fannie Mae and Freddie Mac are very different from the types of companies that have recently tapped into t