Macquarie Group full year profit soars to $4.9b
Make us a preferred source
Make us a preferred source on Google
The news: Macquarie Group’s full-year net profit has soared 30% to $4.85 billion, its second highest result, as the global financial conglomerate bounces back in volatile market conditions.
The numbers: Net operating income jumped 13% to $19.48 billion, well ahead of a 5% increase in expenses to $12.75 billion.
It comes on the back of strong growth for each of Macquarie’s four business units. Commodities and global markets represented $4.22 billion of net profit, up 49% amid volatile market conditions and increased hedging demand in the energy sector.
Macquarie Asset Management delivered $2.6 billion of net profit, up 27%. It was driven by higher performance fees and the sale of its North American and European businesses.
Banking and financial services contributed $1.61 billion, up 17% thanks to strong lending and deposit growth but offset by lower margins on the back of competitive pressures.
Macquarie Capital profit was up 43% to $1.49 billion reflecting higher fees from equity, mergers and acquisitions, brokerage and private credit.
Earnings per share jumped to $12.77, with return on equity rising strongly from 11.2% last financial year to 14%.
Macquarie announced a final ordinary dividend of $4.20 per share, 35% franked, lifting the full year dividend to $7 and a FY26 payout ratio of 55%.
What they said: Macquarie managing director and chief executive Shemara Wikramanayake said the result affirmed the company’s ability to perform in difficult conditions.
“Against a backdrop of increasing global uncertainty, Macquarie’s four client franchises grew over the past year, benefitting from deep and differentiated expertise across key sectors in major markets and adjacently growing from established franchises to new products and markets,” Wikramanayake said.
Reflecting on a clouded global outlook, she said Macquarie would maintain a cautious stance but was confident it could continue delivering strong results.
“Macquarie remains well-positioned to deliver superior performance in the medium term with established, diverse income streams; deep expertise across diverse sectors in major markets with structural growth tailwinds; patient adjacent growth across new products and new markets; ongoing investment in our operating platform; a strong and conservative balance sheet; and a proven risk management framework and culture.”
Noting significant business growth, Macquarie said it had not bought back any shares in the last six months and said it had now concluded the program. It also noted director Jillian Broadbent would step down in December having served eight years.
The source: ASX
