Big swings hit ASX financials this week as profit updates, takeover votes and cost cuts drove fast re-pricing. The winners paid (or promised) cash. The laggards spooked investors with losses, restructures or shaky earnings outlooks.
- FOS Capital (ASX:FOS) sank -22.50% after a weak half-year and no interim dividend
- Australian Ethical (ASX:AEF) jumped 17.38% on profit growth, record funds under management and a bigger dividend
- Navigator Global Investments (ASX:NGI) slid -16.23% even as half-year earnings rose, after signalling a softer full year
- Deal talk stayed hot: ClearView (ASX:CVW) rallied 14.55% on a Zurich cash offer; Insignia (ASX:IFL) moved closer to a $4.80 vote
- More companies used buy-backs, capital returns and dividends to keep investors engaged
A rough split opened up in financial stocks this week: FOS Capital (ASX:FOS) fell -22.50%, Australian Ethical (ASX:AEF) rose 17.38%, and Navigator Global Investments (ASX:NGI) dropped -16.23%. In plain terms, investors punished uncertain earnings and rewarded clear profit growth and cash returns.
The week’s biggest falls: when the numbers (or the outlook) disappoint
FOS Capital (ASX:FOS) sold off after reporting a revenue dip and a larger loss for the half-year, plus no interim dividend. That combination matters because it suggests the business is not yet generating spare cash for shareholders. Navigator Global Investments (ASX:NGI) also slid hard despite a 17% lift in adjusted EBITDA (a cash-style earnings measure before non-cash charges). Investors focused on the company’s message that FY26 earnings are expected to be lower than FY25. When guidance points down, the share price often resets quickly. Tyro Payments (ASX:TYR) fell -7.41% for the week even after profit before tax jumped 72% and it bought AI fintech Thriday for $8 million. The market can do this when a stock has already run earlier, or when investors worry about the cost and integration risk of a new acquisition.Takeovers and asset sales: cash offers are setting the price
ClearView Wealth (ASX:CVW) surged 14.55% after agreeing to a $415 million scheme with Zurich at 65 cents a share, plus the possibility of a special dividend of up to 5 cents. A “scheme” is a takeover that shareholders vote on, and it needs court and regulator sign-off. Insignia Financial (ASX:IFL) edged up 0.65% as shareholders were called to vote on a $4.80 cash scheme backed by CC Capital. The independent expert said the offer is fair and reasonable, and the board is recommending a ‘yes’ vote (subject to conditions). QuickFee (ASX:QFE) gained 12.33% after a headline H1 FY26 profit of $36.45 million, mainly from selling its US Pay Now business. Investors also liked the plan to return $28.5 million of capital to shareholders and the 0.5 cent interim dividend. The key risk from here is simple: after selling an asset, the remaining business must keep growing to replace what was sold.Dividends, buy-backs and capital returns: paying shareholders is back in fashion
Several listed investment companies and fund managers leaned on cash distributions and buy-backs to support their share prices. Regal Partners (ASX:RPL) reported near-doubled profit, lifted funds under management to $20.9 billion, declared a fully franked 15 cent dividend, and launched a $75 million on-market buy-back. A buy-back means the company uses cash to purchase its own shares, which can lift earnings per share if profits hold. WAM Active (ASX:WAA) reported a portfolio jump of 31.4% and raised $70.7 million in an oversubscribed offer. Tribeca Global Natural Resources (ASX:TGF) turned around to a $69.5 million profit and declared a fully franked 5 cent dividend. Perpetual Equity Investment Company (ASX:PIC) held its interim dividend at 4.0 cents per share, pointing to profit reserves and franking credits to help keep payments steady.Fintech and lenders: cost cuts and credit quality are doing the heavy lifting
Australian Ethical (ASX:AEF) was one of the week’s strongest performers after reporting higher profits and funds under management of $14.08 billion, plus a 60% lift in its interim dividend to 8 cents. Investors paid up for the mix of growth and a bigger payout. Wisr (ASX:WZR) climbed 8.00% after saying its loan book grew 23% to $928.5 million and EBITDA turned positive at $2 million. In everyday terms, it says the core business is close to paying for itself. The company is also aiming for cash profitability in the second half of FY26. Beforepay (ASX:B4P) rose 7.38% as revenue grew and profit lifted almost 50%, helped by growth in its Carrington Labs analytics arm. Credit Clear (ASX:CCR) went the other way, down -12.50% despite improving EBITDA and a narrower loss, after announcing acquisitions and a capital raise. Investors often hesitate when a smaller company raises money, because issuing new shares can dilute existing holders. Trading was choppier in several smaller names that reopened with price gaps. In plain language, some stocks jumped at the open then cooled as early buyers took quick profits, while others kept climbing after the reopen as more buyers stepped in. On the downside, a few opened weaker and stayed that way, which usually means there weren’t enough buyers to absorb selling.Bottom Line?
Next week’s focus narrows to dated events: Helia Group (ASX:HLI) goes ex-dividend on 10 March ahead of the 26 March payment, while a run of schemes and approvals remain live for ClearView (ASX:CVW) and Insignia Financial (ASX:IFL) as they move through court and regulatory steps.
Questions in the middle?
- Will ClearView (ASX:CVW) shareholders get the proposed special dividend, and do any approval delays trigger the ticking fee after 30 September 2026?
- Can Navigator Global Investments (ASX:NGI) offset a weaker FY26 outlook with performance fees, or will investors keep discounting next year’s earnings?
- After QuickFee (ASX:QFE) returns capital from the US sale, how quickly can the remaining business grow without relying on one-off transactions?