Macquarie Group (MQG) H2 2025 earnings summary

Executive summary

• After-tax earnings/profit attributable to shareholders reached AUD 3.715 billion for FY25, up 5% year-over-year, with EPS up 7% due to share buybacks.

• ROE improved to 12.5% from 9.9% in FY24, with strong contributions from Macquarie Asset Management and Banking and Financial Services.

• Net operating income increased 2% to AUD 17.2 billion, while operating profit before tax grew 5% to AUD 5.068 billion.

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

• Final ordinary dividend for FY25 was AUD 6.50 per share, with a payout ratio of 67%.

Financial highlights

• 2H25 net profit was AUD 2.103 billion, up 30% from 1H25; FY25 net profit was AUD 3.715 billion, up 5% year-over-year.

• 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, reflecting disciplined cost management and benefits from digitization.

• International income comprised 66% of total income, with significant contributions from Americas, EMEA, and Asia.

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.