Macquarie Group (MQG) Q3 2026 TU earnings summary

Executive summary

• Third quarter/FY26 trading conditions were satisfactory, with all major business segments reporting profit contributions up year-over-year, supported by strong divestment gains and performance fees.

• Macquarie Asset Management (MAM) and Macquarie Capital delivered substantial growth, driven by divestments, performance fees, and private credit expansion.

• Banking and Financial Services (BFS) saw continued growth in loans and deposits, though margins were pressured by competition and car lease portfolio runoff.

• Commodities and Global Markets (CGM) results improved, especially in asset finance and North American gas and power, aided by winter volatility.

• Ongoing investment in technology, digital platforms, and expansion in Australia and New Zealand supported operational efficiency.

Financial highlights

• MAM completed the divestment of AUD 250 billion in North American and European public investments, transferring assets to Nomura and boosting net profit.

• Australian public investments AUM rose 5% to AUD 314 billion, and private markets equity under management increased 1% to AUD 227 billion.

• BFS home loans grew 7% to AUD 172.2 billion, deposits up 6% to AUD 204.5 billion, and funds on platform at AUD 164.6 billion.

• Macquarie Capital’s private credit book rose by AUD 5.7 billion to AUD 28.9 billion, with equity portfolio at AUD 5.5 billion.

• Group capital surplus at AUD 7.5 billion as of 31 December 2025, with CET1 ratio at 12.4%, LCR at 178%, and NSFR at 111%.

Outlook and guidance

• MAM base fees expected to remain stable (excluding divestment), with net operating income up due to performance fees.

• BFS anticipates ongoing loan and deposit growth, subject to margin pressures and technology investment.

• Macquarie Capital expects transaction activity in line with last year, continued private credit growth, and more equity realizations.

• CGM guides for higher commodities income in FY26, leveraging physical assets and market volatility, with ongoing investment in digitisation.

• Short-term outlook remains cautious, influenced by global economic conditions, inflation, interest rates, volatility, and regulatory changes.