Macquarie Group (MQG) H1 2025 earnings summary

Executive summary

• Net profit for H1 FY25 was $A1,612 million, up 14% year-over-year but down 23% from H2 FY24, with annualised ROE at 9.9%.

• Net operating income rose 4% year-over-year to $A8,216 million, while operating expenses remained flat at $A5,919 million.

• International income accounted for 65% of total income, reflecting a diversified global business.

• Assets under management ended at $A916.8 billion, down 2% from March 2024 due to FX impacts and equity outflows.

• Interim dividend declared at $A2.60 per share (35% franked), payout ratio 61%.

Financial highlights

• Net operating income was $A8,216 million, up 4% year-over-year, with operating profit before tax up 15% to $A2,297 million.

• Basic EPS rose 15% to 424.6c; profit after tax was $A1,611 million (+15% YoY).

• Operating expenses were flat year-over-year, reflecting ongoing investment in compliance, digitization, and technology.

• Effective tax rate was 29.9%, consistent with prior periods.

• Customer deposits grew 7% to $A158.3 billion as at September 2024.

Outlook and guidance

• Base fees in asset management expected to remain stable; green investment income to rise, subject to market conditions.

• BFS to see continued loan and deposit growth, but margin pressure persists due to competition.

• Macquarie Capital expects higher transaction activity and steady investment income, with ongoing balance sheet recycling.

• Commodities income expected to be down unless volatility increases; financial markets and asset finance to maintain contributions.

• Cautious stance maintained due to external risks; medium-term outlook remains positive due to business diversification and market positioning.