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Capital One posts net loss after Discover purchase
Capital One reported a net loss last quarter following its acquisition of Discover Financial, but beat estimates on adjusted metrics. The company’s net loss was US$4.3 billion, down from net income of $597 million one year ago. Adjusted earnings per share were $5.48, above Zacks estimates of $3.83. “We completed our acquisition of Discover on 18 May. We’re fully mobiliszed and hard at work on integration which is going well,” said Capital One CEO Richard D. Fairbank. “We’re as excited as ever by the expanding set of opportunities to grow and create value as a combined company.” Capital One’s total net revenue last quarter was US$12.49 billion, rising by 31% year-over-year and surpassing estimates of $12.22 billion. Its non-interest expenses grew by 26% year-over-year to US$6.99 billion, with operating expenses up by 45% and marketing expenses up by 26%. The company’s provision for credit losses was US$11.43 billion, increasing 192% from 2024’s second quarter. Capital One said in 2024 that it would purchase Discover Financial for US$35.3 billion, and the deal was approved by regulators in April. The acquisition has made Capital One the largest credit card issuer in the United States, as Discover was previously the
Savings
AMP hails return of positive cash flows
AMP has reported positive net cashflows for its superannuation and investment businesses for the first time in eight years. The financial services group said the business had positive net cashflows of A$33 million (US$21.5 billion) in the three months to 30 June, the first such flows since the second quarter of the 2017 financial year when they were $99 million. Chief Executive Alexis George said this was a significant milestone. “This reflects our continued efforts to build a compelling member proposition [that] is delivering outstanding investment returns, service and education,” George said in an ASX announcement. AMP said platforms net cashflows increased 63.2% to $1.565 million (2Q 24: $959 million) as platforms assets under management (AUM) rose 5.6% to $83.2 billion, mostly due to investment market movements. Superannuation & Investments AUM rose 4.8% to $58.5 billion, driven by investment markets and resilient inflows. George said the Platforms business delivered another standout performance with net cashflows up more than 60% as a result of the strength of its platform and ongoing innovation. “We will continue our focus on member retention, to drive towards a sustainable positive cashflow position,” s
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Cost of living causing anxiety, depressions for Aussies
Many Australians admit that the rising cost of living has a negative impact on their mental health. The Compare the Market survey found that younger Australians were most impacted, with 72% of Gen Z and 56.6% of millennials saying they now experience or have exacerbated anxiety or depression due to money pressure. Overall, 48.7% of Australians say money pressures have led to the onset or exacerbation of anxiety or depression. These findings were revealed by the RBA decided to leave interest rates unchanged. It also comes as the latest cost-of-living index by the Australian Bureau of Statistics (ABS) found increased living costs in the March quarter of this year. More than one in three Aussies said they slept less due to money stress. Once again, Gen Z was most impacted (48%) followed closely by Gen X (38.2%). “Cost-of-living impacts all Australians, but it’s clear that the younger generations are feeling it the most – particularly those on lower wages, with student debt, raising a young family, and people who don’t benefit from intergenerational wealth,” Compare the Market economic director David Koch said. Gen Z struggles most following trends found in other surveys, where the younger generation named instabi
Savings
Young Australians turn to family as living costs soar
Young Australians are relying more on parents and grandparents to save money amid cost of living pressures. Compare the Market found that one-in-six parents and grandparents helped purchase clothes, toys and essentials for their children and grandchildren in the past year. The research also found 93.3% of parents and grandparents admit to supporting younger Australians, a sharp increase from 73.3% last year. Compare the Market economic director, David Koch said the intergenerational wealth transfer is becoming a ‘third income’ to help younger Australians. “Baby Boomers are often blamed by fuelling inflation with their spending. After all, we haven’t faced the same intense cost-of-living pressures that have made the ‘Great Australian Dream’ seemingly feel impossible today,” he said. “But in fact, 93% of parents and grandparents now support their younger generations in some way to combat the rising cost of bills, groceries and other essentials – a 20% increase compared to last year.” However, Koch also acknowledged that intergenerational wealth is a privilege that not everyone has access to. “Intergenerational wealth is passed down to the lucky among us, we could see a widening gap between the haves and the have
Savings
Medicare Levy Surcharge threshold changes to hit Aussies
With Medicare Levy Surcharge thresholds changing on 1 July, Compare the Market warns those who don’t have private hospital insurance. The Medicare Levy Surcharge, a tax for high-income earners without the appropriate level of hospital cover, currently sees singles earning A$97,000 or $194,00 a family or a couple incurring a surcharge if they don’t hold an eligible private hospital insurance policy throughout the entire financial year. The changes on 1 July will see the threshold change with singles earning over $101,000 or families and couples earning over $202,000 who don’t hold a hospital policy and a combined hospital and extras health insurance policy will incur a surcharge for every day in the 2025-26 financial year they don’t have coverage. Compare the Market's economic director, David Koch warns that many Australians will be stung by the change. “You may have been one of the lucky Aussies to receive a pay increase above $97,000 this financial year, but unless you hold hospital cover, you’re likely going to get stung this tax time,” Koch said. “And the kicker is that the MLS is applied for every single day during the financial year that you haven’t held private hospital cover if you’re earning over the minimum

Savings
Australia's wealth gains face stress from debt, markets
Australia’s household wealth climbed 0.8% ($137.1 billion) in Q1 2025, driven almost entirely by a $125.3 billion surge in residential land and dwelling values, according to the Australian Bureau of Statistics. This marks the eighth straight quarter of house price gains, though annual growth has cooled to 4.2%, down from 8.0% a year earlier. Despite the property boom, warning signs are flashing. Household borrowing jumped 1.4% ($42.4 billion), shaving 0.2 percentage points off net wealth growth. Meanwhile, superannuation balances fell 0.4% ($16.4 billion) — the first drop since Q3 2022. The ABS attributes this to weak equity markets; MSN adds that United States tariff threats have contributed to investor anxiety. The Reserve Bank’s February and May rate cuts offered some mortgage relief, with household deposits rising 1.7% ($29.5 billion). But with geopolitical risks and equity volatility still in play, investors should watch for credit expansion and asset repricing in the second half of 2025.
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Australians more loyal to wealth advisers: EY report
Australian investors are more willing to retain their wealth providers than their peers overseas, according to a new report from one of the world’s largest professional services firms. This signals deeper trust between Australian local investors and their primary wealth advisers, EY said in its 2025 EY Global Wealth Research Report. EY said 18% of Australian respondents to a survey said they were likely to change their primary wealth provider within the next three years, well below the global average of 29%. But rising expectations were pushing wealth managers to modernise and personalise their services, the firm said in the sixth edition of the report. “Our survey suggests that Australian investors continue to value strong relationships with their wealth managers and advisers,” EY Regional Wealth and Asset Management Leader Oceania Rita Da Silva said in a media release. She said Australia’s robust regulatory guardrails and work to build trust following the Financial Services Royal Commission had gone a long way to creating an environment where investors were less likely to be considering a shift to primary providers. But it was essential that wealth managers kept pace with evolving client expectations in the fac
Savings
Link Wealth empowers students with real financial skills
Link Wealth is ramping up efforts to tackle Australia’s financial adviser shortage, expanding its Beyond School program to equip high school students with critical financial literacy skills. The initiative, launched in late 2023, has already reached over 300 students, offering free workshops on budgeting, superannuation, debt, investments, and savings. With adviser numbers down to 15,600 — a sharp decline from 28,000 in 2018 — Link Wealth aims to introduce more young Australians to financial advice as a viable career path. The program seeks to bridge the gap between financial literacy and career opportunities, ensuring students leave with confidence in managing their finances while considering financial advice as a meaningful career. For investors, the adviser shortage presents both risks and opportunities. A shrinking talent pool could impact financial services growth, but initiatives like Beyond School signal long-term industry resilience. Other firms are also stepping in — Striver and BT have launched the Striver Career Pathways Program, aiming to introduce 5,000 new advisers over the next decade. Meanwhile, the Financial Advice Association Australia (FAAA) continues to push for government-backed incentives
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More Australians switching to home-brand groceries: poll
The surging cost of living is causing Australians to seek bargains and switch to generic brands. New research from Compare the Market shows almost half of shoppers are switching to home brands, which is saving them an average of 41%. It was found that Victoria was the most frugal state, with 53% of shoppers switching to generic brands to save money, which is ahead of the national 49%. Victoria beats South Australia (46%), New South Wales (47%), Queensland (48%) and Western Australia (48%). Compare the Market’s Chris Ford said brand loyalty is declining due to shoppers being stung by high prices. “Families have been doing it tough for long enough and with high prices in almost every aisle at the supermarket, it’s hardly surprising to see so many Australians opting for generic brands over big names,” Ford said. Data shows that Australians spend on average A$213.64 on groceries weekly, which is an 11.5% increase compared to the $191.66 average in January. This adds up to around $1,142.96 for groceries alone for the year. Compare the Market found that Australians switch to generic brands for many essentials. The main categories where people have switched are milk (65%), cleaning products (58%) and bread (57%).