Macquarie Group Ltd has reported a full-year net profit of $A3.715 billion for the financial year ended March 31, 2025 (FY25), marking a 5% increase from the prior year. The robust result comes despite ongoing global economic volatility, underscoring the resilience of the group’s diversified business model.
The second half of the financial year was particularly strong, with net profit rising 30% to $A2.103 billion compared to the first half of FY25. The group's net operating income reached $A17.2 billion, up 2% year-on-year, while operating expenses remained steady at $A12.1 billion.
CEO Shemara Wikramanayake credited the performance to the strength of Macquarie’s global client franchises and diversified income streams. “Against a backdrop of ongoing market and economic uncertainty, Macquarie’s client franchises remained resilient over the past year, delivering new business origination and underlying income growth,” she said.
International operations continued to play a pivotal role in Macquarie’s earnings, contributing 66% of total income. Assets under management (AUM) grew modestly to $A941.0 billion, a 3% rise from the September 2024 figure, although nearly flat compared to the previous March.
The group's financial stability remains solid, with a capital surplus of $A9.5 billion and strong regulatory ratios. The Common Equity Tier 1 (CET1) capital ratio under APRA’s Basel III framework stood at 12.8%, and the liquidity coverage ratio (LCR) was 175%.
Macquarie announced a final ordinary dividend of $A3.90 per share (35% franked), bringing the full-year dividend to $A6.50 per share. This represents a payout ratio of 67%, consistent with the company’s dividend policy of distributing 50–70% of annual earnings.
Segment performance
Performance varied across Macquarie’s four operating groups:
- Macquarie Asset Management (MAM) reported a net profit contribution of $A1.61 billion, up 33% from the prior year. The increase was driven by performance fees and the sale of the helicopter leasing business, Macquarie Rotorcraft.
- Banking and Financial Services (BFS) posted a net profit contribution of $A1.38 billion, up 11%. This was supported by growth in its loan portfolio and deposits, offset by pressure from margin compression and higher credit impairments.
- Commodities and Global Markets (CGM) saw a 12% decline in profit to $A2.83 billion. Reduced client hedging activity and subdued commodity markets impacted performance, particularly in European and North American energy segments. However, strong performance in financial markets and structured foreign exchange partially offset the downturn.
- Macquarie Capital recorded a profit of $A1.04 billion, broadly in line with last year. Gains in advisory and private credit income were tempered by lower investment income and increased funding costs.
Capital and liquidity
The group maintained a conservative capital and liquidity profile. Total deposits rose 20% to $A177.7 billion, and $A32.0 billion in term funding was raised over the year. Macquarie continues its on-market share buyback, with $A1.013 billion of shares repurchased as of 8 May 2025.
Outlook
Looking ahead, Macquarie remains cautious amid ongoing global economic challenges. The company cited potential risks from inflation, interest rate changes, geopolitical events, and regulatory shifts. However, Wikramanayake expressed confidence in the group’s medium-term outlook, supported by its diversified business mix, disciplined risk management, and strong balance sheet.
“Macquarie remains well-positioned to deliver superior performance in the medium term with established, diverse income streams and deep sector expertise across major markets,” she said.
The final dividend will be paid on July 2, 2025, with a record date of May 20. The Dividend Reinvestment Plan will be satisfied through on-market share purchases unless deemed impractical.