Macquarie Group (MQG) H2 2025 earnings summary

Executive summary

• FY25 net profit after tax rose 5% year-over-year to AUD 3.715 billion, with 2H25 profit up 30% sequentially from 1H25 and EPS up 7% due to share buybacks.

• Net operating income increased 2% to AUD 17.2 billion, with international income comprising 66% of total and significant contributions from Americas, EMEA, and Asia.

• Assets under management stood at AUD 941 billion as of 31 March 2025, with two-thirds of income generated outside Australia.

• Workforce reached 19,735, with over half located internationally, though down 5% year-over-year.

• Annualised return on equity improved to 12.5% in 2H25, up from 9.9% in FY24.

Financial highlights

• Operating income rose 2% to AUD 17.2 billion, driven by 9% growth in fee and commission income and gains from asset disposals.

• Credit and impairment charges increased by AUD 730 million due to higher credit origination and a deteriorating macro outlook.

• Expenses remained flat year-over-year at AUD 12.14 billion, reflecting disciplined cost management and digitization benefits.

• Full-year dividend declared at AUD 6.50 per share, 35% franked, with a payout ratio of 67%.

• Deposit base up 20% to AUD 177.7 billion, now 48% of the funded balance sheet.

Outlook and guidance

• Base fees and net operating income in asset management expected to be broadly in line, excluding the Nomura transaction.

• BFS anticipates ongoing loan and deposit growth, with continued investment in digitization and margin pressure.

• Macquarie Capital expects transaction activity to be steady or up, with higher investment-related income from private credit and equity realizations, mainly in the second half.

• Commodities and Global Markets income expected to be slightly up, with continued growth in client franchise and financial markets.

• All guidance is subject to market conditions, global economic factors, and regulatory changes.