Macquarie Group has delivered a standout result, with full-year net profit rising 30 percent to $A4,847 million. The standout was the second half, which delivered $A3,192 million in profit, up 93 percent from the first half and marking a record half-year result for the group. This sharp acceleration from 1H26 reflects the timing of earnings recognition, particularly performance fees, and a more favorable market environment. Earnings per share grew by the same 30 percent to $A12.77, reflecting the strength of the underlying earnings generation.
The profit growth was underpinned by net operating income rising 13 percent to $A19,477 million, which outpaced expense growth of 5 percent to $A12,748 million. This margin expansion demonstrates disciplined cost management amid a higher income base. International operations continued to be a key driver, representing 68 percent of total income and reflecting Macquarie’s diversified global footprint. The effective tax rate rose to 27.6 percent from 26.2 percent, a 140 basis point increase that was largely attributable to the geographic composition and nature of earnings rather than a change in underlying tax policy.
Macquarie Asset Management delivered the largest profit contribution with $A2,602 million, up 27 percent year on year, largely driven by higher performance fees which are inherently tied to fund outperformance and market conditions. The business also completed the sale of its public investments division in North America and Europe during the second half, signaling strategic repositioning and a deliberate choice to focus on higher-margin product segments. Banking and Financial Services profit rose 17 percent to $A1,610 million, with growth in the loan portfolio and deposits offsetting margin pressure from the competitive lending environment.
The group returned to shareholders a final dividend of $A4.20 per share, bringing the full-year dividend to $A7.00 per share, both at 35 percent franking. The full-year payout ratio of 55 percent reflects management confidence in earnings sustainability. The return on equity improved meaningfully to 14.0 percent from 11.2 percent, a 280 basis point uplift that signals more efficient capital deployment and operational leverage. The bank’s capital position remains robust, with the Level 2 CET1 ratio at 12.8 percent, comfortably above regulatory minimums and providing flexibility for capital allocation.
Investors should monitor how Macquarie sustains the momentum achieved in the second half, particularly given the significant volatility between the two halves. The performance fee contribution to MAM results warrants close attention, as this remains inherently cyclical and dependent on market performance and fund outperformance. The implications of higher effective tax rates and ongoing geopolitical dynamics that influence the international income stream remain important areas to observe. Macquarie’s ability to maintain expense discipline while investing in growth initiatives will be crucial to delivering sustained returns in a dynamic environment. This announcement is price sensitive and has been flagged as material by the ASX.
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About Macquarie Group Limited (ASX: MQG)
Macquarie Group is a global financial services company providing banking, advisory, and investment services across asset management, commodities, and capital markets. It is known for its infrastructure investment expertise.
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