Macquarie Group delivered a satisfactory first quarter of 2027 with mixed but broadly positive divisional results, demonstrating the resilience of its diversified business model. The standout feature of the announcement is the bank’s strengthened financial position, with its Common Equity Tier 1 capital ratio rising to 13.8 per cent from 12.8 per cent in the prior quarter, providing significant headroom above APRA Basel III requirements and underpinning the group’s capacity for growth and shareholder returns.
Performance across Macquarie’s operating groups reflected varied market conditions. Macquarie Asset Management’s net profit contribution declined compared to the prior corresponding period, a direct result of the 2H26 divestment of its North American and European public investments business. However, the division still accumulated A$748 billion in assets under management at quarter-end, up 4 per cent from March, with A$20.3 billion of capital remaining to deploy. Banking and Financial Services showed profit growth despite headwinds, as volume expansion in the loan portfolio and deposit base offset margin compression from competitive pressures. Commodities and Global Markets was the clear winner, with substantially higher profits driven by a sharp rebound in commodities income after subdued trading in the prior quarter, alongside increased asset finance activity. Macquarie Capital contributed higher profits on the back of stronger investment-related and brokerage income, though advisory fees remained below the prior year’s elevated level.
The deposit and lending franchises continued their expansion. BFS deposits reached A$223.3 billion, representing 4 per cent growth over the quarter, while the home loan portfolio maintained its trajectory. The group raised A$4.2 billion of fresh capital during the quarter and achieved A$9.3 billion in positive net flows, underscoring sustained investor demand despite recent market volatility. This capital raising capacity positions Macquarie to deploy an additional A$20.3 billion across its investment funds and strategies, a significant metric for investors tracking the group’s organic growth prospects.
Management signalled financial discipline through ongoing shareholder returns. The group completed a A$734 million employee share buyback in June at a weighted average price of A$238.80, while the dividend reinvestment plan for the 2H26 dividend was satisfied through share issuance at A$233.12 per share. These actions reflect confidence in the business and demonstrate management’s approach to capital deployment in a period of regulatory strength and operational momentum.
For investors, the key takeaway is a bank navigating a complex environment with solid execution across most divisions. The capital ratio improvement provides flexibility for further shareholder distributions or strategic investments, while the diversification across banking, asset management, and commodities businesses provides a hedge against cyclical downturns in any single segment. Investors should monitor whether the MAM profit contribution stabilises in coming quarters despite the divestment headwind, and whether margins in BFS can stabilise as deposit competition moderates. This announcement is price sensitive material released by the ASX.
View the full ASX announcement (PDF)
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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