Macquarie Posts A$3.715bn Net Profit with AUM Reaching A$941bn in FY25
Macquarie Group reported a 5% rise in full-year net profit to A$3.715 billion for FY25, driven by growth across its diversified businesses and a solid capital position. The group’s assets under management reached A$941 billion, supported by strong home loan and deposit growth.
- FY25 net profit up 5% to A$3.715 billion
- Assets under management increased to A$941 billion
- Home loans and deposits grew strongly in Banking and Financial Services
- APRA Basel III CET1 ratio remains robust at 12.8%
- Continued investment in technology and digital platforms
Overview of FY25 Results
Macquarie Group Limited has delivered a solid financial performance for the full year ended 31 March 2025, with net profit after tax rising 5% to A$3.715 billion. This growth reflects the strength and diversity of Macquarie’s business model, spanning asset management, banking, commodities, and capital markets.
The group’s assets under management (AUM) increased to a record A$941 billion, underscoring Macquarie Asset Management’s continued expansion and client confidence. This was supported by strong fundraising, strategic investments, and positive net asset valuations, despite some divestments and market outflows in public equity strategies.
Banking and Financial Services Momentum
Macquarie’s Banking and Financial Services (BFS) division showed robust growth, with home loans rising 19% to A$141.7 billion and BFS deposits up 21% to A$172.4 billion. The loan portfolio expansion was driven by strong demand in owner-occupier and lower loan-to-value segments, predominantly sourced through broker channels. The division also benefited from a 4% increase in funds on platform to A$154 billion, reflecting enhanced wealth management offerings and digital banking experiences that outperformed major peers in customer satisfaction metrics.
Commodities and Global Markets Performance
Commodities and Global Markets (CGM) contributed A$2.829 billion in net profit, a 12% increase, despite subdued client hedging activity in certain commodity markets such as EMEA Gas, Power, Emissions, and Global Oil. The division offset these headwinds with stronger contributions from the metals and agriculture sectors, increased financial markets activity, and growth in asset finance portfolios, particularly shipping finance.
Macquarie Capital and Strategic Investments
Macquarie Capital reported a slight increase in net profit contribution to A$1.043 billion, supported by higher advisory and brokerage fees, especially in Europe and Australia-New Zealand. The private credit portfolio grew to A$26 billion, with significant deployment in mid-market lending and bespoke financing solutions. However, investment-related income declined due to lower impairment reversals and higher funding costs associated with an expanded equity investment portfolio.
Capital and Funding Strength
Macquarie maintained a strong capital position with an APRA Basel III Common Equity Tier 1 (CET1) ratio of 12.8%, comfortably above regulatory minimums. The group’s funded balance sheet remains well diversified, with term funding raised totaling A$32 billion during FY25 and a weighted average maturity of 4.5 years for term funding beyond one year. Deposits now represent 48% of total funding sources, reflecting successful diversification strategies.
Technology and Regulatory Outlook
Investment in technology and digital platforms continued, focusing on enhancing client experience and operational efficiency. Regulatory compliance costs remained stable, with ongoing efforts to meet evolving standards, including APRA’s governance and capital adequacy reforms. Macquarie also faces ongoing regulatory scrutiny in Germany and additional conditions imposed by ASIC on its Australian financial services licence, highlighting compliance as a key focus area.
Outlook and Strategic Positioning
Looking ahead, Macquarie expects broadly stable performance across its business segments, with growth opportunities in private markets, banking, and commodities. The group remains cautious amid global economic uncertainties but is well positioned with a conservative balance sheet, diverse income streams, and a strong risk management framework. Strategic divestments, such as the planned sale of the public investments business in North America and Europe, are expected to complete by the end of 2025, further refining the group’s focus.
Bottom Line?
Macquarie’s FY25 results reinforce its diversified business strength and capital resilience, setting the stage for measured growth amid evolving market and regulatory landscapes.
Questions in the middle?
- How will margin pressures and credit impairments impact Macquarie’s profitability in FY26?
- What is the timeline and expected impact of the divestment of Macquarie Asset Management’s public investments business?
- How will ongoing regulatory investigations and ASIC conditions affect Macquarie’s operational risk and compliance costs?