Macquarie Group (MQG) Q3 2025 TU earnings summary

Executive summary

• Net profit after tax for the nine months to 31 December 2024 was broadly in line with the same period last year, with annuity-style businesses showing strong growth and markets-facing businesses experiencing declines due to subdued commodity markets and timing of income recognition.

• Four operating groups: Australian digital banking, global asset management, commodities and global markets, and capital markets/principal investing, supported by central service groups.

• Group headcount stands at 19,795, with 51% of staff based internationally.

Financial highlights

• MAM assets under management reached A$942.7 billion at 31 December 2024, up 3% from 30 September 2024; BFS deposits rose 7% to A$163.8 billion and home loan portfolio grew 5% to A$136.2 billion.

• CGM's contribution decreased due to subdued commodity markets and timing issues in North American Gas and Power; Macquarie Capital saw higher fee income but lower investment-related income.

• Group capital surplus stood at A$8.5 billion as of 31 December 2024, down from A$9.8 billion at 30 September 2024, mainly due to increased business capital requirements and dividend payments.

• CET1 ratio was 12.6% (Harmonised: 17.7%), leverage ratio 5.0% (Harmonised: 5.7%), LCR 196%, NSFR 113%.

• Share buyback extended for 12 months to A$2 billion, with just over A$1 billion repurchased as of 10 Feb 2025.

Outlook and guidance

• No material change in short-term outlook; base fees in asset management expected to be stable, with net operating income up due to green investment-related income.

• Banking and Financial Services to see continued loan and deposit growth, but margin pressure persists.

• Macquarie Capital transaction activity expected to be significantly up from a challenging prior year; investment income to remain stable, supported by private credit growth.

• Commodities and Global Markets income expected to be down year-over-year, but volatility may create opportunities.

• The group maintains a cautious stance, emphasizing conservative capital, funding, and liquidity management.