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Net Profit After Tax: $4.847 billion, up 30% from the prior year. Return on Equity: 14%, up from just over 11% in the prior year. Group Net Operating Income: Increased 13% to $19.5 billion. Net Interest and Trading Income: Up 14% to $10.2 billion. Fees and Commissions Income: Up 6% to $7.2 billion. Investment Income: Increased to $2.8 billion. Credit Impairment Charge: $478 million for the year. Operating Expenses: Increased 5% to $12.7 billion. Effective Tax Rate: 27.6%. Macquarie Asset Management Profit: $2.6 billion, up 27%. Banking and Financial Services Profit: $1.61 billion, up 17%. Commodities and Global Markets Profit: $4.221 billion, up 49%. Macquarie Capital Profit: $1.491 billion, up 43%. Capital Surplus: Increased to $9.3 billion. Second Half Dividend: $4.20, total $7 for the year. Deposits: Over $220 billion, up 25%. Loan Portfolio: $253 billion, up 23%. Equity Investments: $13 billion, down $400 million. CET1 Ratio: 12.8%.

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Release Date: May 08, 2026

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

Macquarie Group Ltd (MCQEF) reported a net profit after tax of $4.847 billion, up 30% from the previous year. The return on equity increased to 14%, up from just over 11% in the prior year. All four operating groups contributed to the increased earnings, with significant growth in Macquarie Asset Management and Commodities and Global Markets. The company successfully raised over $20 billion of equity and invested over $25 billion during the year. Macquarie Group Ltd (MCQEF) declared a second-half dividend of $4.20, resulting in a total annual dividend of $7, up from $6.50 the previous year.

Negative Points

The private markets equity under management decreased by 1%, primarily due to foreign exchange movements. Credit and other impairment charges increased significantly, reflecting greater macroeconomic uncertainty. Operating expenses rose by 5%, driven by higher profit share and continued investment in technology. The company faces ongoing regulatory challenges, including the phase-out of hybrid instruments as eligible capital by APRA. Market conditions remain uncertain, particularly in the Commodities and Global Markets and Macquarie Capital divisions, which could impact future earnings.

Q & A Highlights

Q: Can you elaborate on the market conditions affecting Commodities and Global Markets (CGM) and Macquarie Capital, and how they impact your outlook? A: Shemara Wikramanayake, CEO, explained that market conditions are unpredictable and can significantly impact results. CGM benefited from energy market volatility, but future conditions remain uncertain. Simon Wright, Head of CGM, noted that while volatility is beneficial, prolonged volatility could lead to subdued client activity. Michael Silverton, Head of Macquarie Capital, added that while mandate levels are high, conversion into transactions is uncertain, particularly in the software sector.

Story Continues

Q: Are there inorganic growth opportunities Macquarie is considering, given the current market environment? A: Shemara Wikramanayake, CEO, stated that inorganic opportunities are driven by strategic areas identified by each operating group. While Macquarie has capital to support such opportunities, current market conditions do not show significant dislocation in pricing. Michael Silverton, Head of Macquarie Capital, noted that public markets, particularly large caps, have seen dislocation, but this is not a primary target for Macquarie.

Q: What is the outlook for asset realizations in Macquarie Capital, and how does it affect capital deployment? A: Shemara Wikramanayake, CEO, mentioned that asset realizations are in line with expectations, with a focus on exiting assets when returns are optimal. Michael Silverton, Head of Macquarie Capital, highlighted that the second half of the next year is expected to see more realizations, although they may be lumpy due to the nature of investments.

Q: How is Macquarie managing its private credit portfolio, and what are the growth prospects? A: Shemara Wikramanayake, CEO, noted that the private credit portfolio is high-quality, with spreads holding at 4% to 4.5%. Growth is constrained by concentration limits, and Macquarie is looking to bring in third-party capital. Michael Silverton, Head of Macquarie Capital, added that origination was strong, with significant opportunities in Europe and real estate.

Q: What are the long-term thematics Macquarie is investing in, and how do they align with global trends? A: Shemara Wikramanayake, CEO, identified key thematics such as demographics, technology and digitization, energy transition, and deglobalization. Ben Way, Head of Macquarie Asset Management, emphasized the importance of these themes in driving investment decisions, particularly in infrastructure, digitalization, and national resiliency.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

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