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.

• Significant gains were realized from the sale of the North American and European public investments business, boosting Macquarie Asset Management results.

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

• Commodities and Global Markets and Macquarie Capital delivered substantially higher net profit contributions, driven by asset realisations, private credit portfolio growth, and winter volatility in North American gas and power.

• Ongoing investment in technology, cloud migration, and expansion in Australia and New Zealand was 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 realizing a gain of approximately AUD 2.8 billion.

• Assets under management reached AUD 736.1 billion, up 3% from the previous quarter; Australian public investments AUM rose 5% to AUD 314 billion.

• 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.

• Group capital surplus stood 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

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

• BFS anticipates continued growth in loans, deposits, and funds on platform, but margins remain under pressure from competition and technology investment.

• Macquarie Capital transaction activity expected to match last year, with ongoing private credit growth and equity realizations.

• CGM commodities income guidance upgraded for FY26, with winter volatility in North America providing upside and ongoing investment in digitisation.

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