Macquarie Group (MQG) H2 2026 earnings summary

Executive summary

• Net profit after tax for FY26 reached AUD 4.847 billion, up 30% year-over-year, with a record 2H26 profit of AUD 3.192 billion, up 93% sequentially from 1H26, and all four operating groups contributing to growth.

• Return on equity rose to 14.0%, up from just over 11% in the prior year, and basic EPS increased 30% to AUD 12.77.

• Income is globally diversified, with nearly 70% (68%) from outside Australia.

• Ordinary dividend for FY26 was AUD 7.00 per share, up 8% from FY25, with a payout ratio of 55%.

Financial highlights

• Group net operating income increased 13% to AUD 19.477 billion year-over-year; operating profit before tax rose 33% to AUD 6.729 billion.

• Net interest and trading income rose 14% to AUD 10.159 billion, driven by BFS loan growth, CGM financing, and client hedging activity.

• Fees and commissions income up 6% to AUD 7.216 billion; investment income up to AUD 2.8 billion, aided by asset sales.

• Operating expenses increased 5% to AUD 12.748 billion, mainly due to higher employment costs, but below revenue growth.

• Credit and impairment charges rose to AUD 708 million, mainly in the second half, reflecting macroeconomic uncertainty.

Outlook and guidance

• Expectation for base fees in asset management to remain broadly in line, excluding divested public investments, with net other operating income to rise.

• BFS to see ongoing growth in loans, funds, and deposits, though margin pressure may impact results.

• Macquarie Capital and CGM income expected to be broadly in line with FY26, subject to market conditions and excluding divestments.

• Cautious stance maintained on funding, capital, and liquidity due to market, regulatory, and geopolitical uncertainties.

• Well-positioned for medium-term performance with diverse income streams and strong risk management.