Macquarie Group (MQG) Q3 2026 TU earnings summary

Executive summary

• Third quarter trading conditions were satisfactory, with all major business segments reporting profit contributions up year-over-year, supported by strong performance in asset management, capital, and commodities, and significant gains from the sale of North American and European public investments.

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

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

• Commodities and Global Markets posted improved results, particularly in asset finance and North American gas and power, aided by winter volatility.

• Ongoing investment in the operating platform and expansion in Australia and New Zealand were highlighted.

Financial highlights

• Macquarie Asset Management completed the divestment of AUD 250 billion in public investments in North America and Europe, transferring assets to Nomura and boosting net profit contribution.

• Australian public investments AUM rose 5% to AUD 314 billion, and total MAM AUM reached AUD 736.1 billion, up 3% from the previous quarter.

• Private markets equity under management increased 1% to AUD 227 billion, with AUD 6.3 billion raised and AUD 7.7 billion invested.

• BFS home loans grew 7% to AUD 172.2 billion, business banking up 1%, and deposits up 6% to AUD 204.5 billion year-over-year.

• Group capital surplus stood at AUD 7.5 billion as of 31 December 2025, with total deposits up 7% since September 2025 to AUD 212.8 billion.

Outlook and guidance

• Asset Management expects base fees to remain stable (excluding divestments), with net operating income significantly up due to performance fees.

• BFS anticipates ongoing growth in loans, deposits, and funds on platform, with margin pressure from competition and tech investment.

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

• CGM guides for commodities income to be up for FY26, with winter volatility and infrastructure footprint supporting performance and ongoing investment in digitisation.

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