Financial markets change rapidly due to news, economic shifts, and geopolitical events. Quick reactions are vital for investors to avoid losses or capture short-term gains. As a result, concise financial news summaries are critical for decision-making. With over 50,000 financial articles published daily, automation in summarization is necessary. This study evaluates a range of summarization methods, from simple extractive techniques to advanced large language models (LLMs), using the FinLLMs Challenge dataset. LLMs generated more coherent and informative summaries, but they are resource-intensive and prone to hallucinations, which can introduce significant errors into financial summaries. In contrast, extractive methods perform well on short, well-structured texts and offer a more efficient alternative for this type of article. The best ROUGE results come from fine-tuned LLM model like FT-Mistral-7B, although our data corpus has limited reliability, which calls for cautious interpretation.
@article{arxiv.2512.08764,
title = {Financial News Summarization: Can extractive methods still offer a true alternative to LLMs?},
author = {Nicolas Reche and Elvys Linhares-Pontes and Juan-Manuel Torres-Moreno},
journal= {arXiv preprint arXiv:2512.08764},
year = {2025}
}