Macquarie Reports A$3.7 Billion Net Profit, Loan Assets Up 17%

Overview of FY2025 Performance

Macquarie Group Limited has delivered a solid financial performance for the year ended 31 March 2025, reporting a 5% increase in net profit attributable to ordinary equity holders, reaching A$3.715 billion. This growth was supported by a 2% rise in net operating income to A$17.208 billion, underpinned by higher fee and commission income and net other operating income.

Operating expenses remained broadly stable at A$12.140 billion, reflecting disciplined cost management despite ongoing investments in technology and digitalisation initiatives. The Group’s return on equity improved to 11.2%, up from 10.8% in the prior year, signaling enhanced capital efficiency.

Segment Contributions and Income Drivers

Macquarie Asset Management (MAM) led the profit growth with a 33% increase in net profit contribution to A$1.610 billion, driven by gains on equity and debt investments, notably the sale of Macquarie Rotorcraft, and increased performance fees from Private Markets-managed funds. Banking and Financial Services (BFS) also posted an 11% profit rise to A$1.380 billion, benefiting from loan and deposit portfolio growth despite margin compression.

Conversely, Commodities and Global Markets (CGM) saw a 12% decline in net profit contribution to A$2.829 billion, impacted by subdued client hedging activity in certain commodity markets and timing effects in inventory management income. Macquarie Capital’s profit contribution remained broadly steady at A$1.043 billion, with higher net interest income from private credit offsetting lower net gains on investments.

Balance Sheet and Funding Profile

Total assets increased 10% to A$445.2 billion, driven by a 17% rise in loan assets to A$205.6 billion, reflecting strong growth in home loans within BFS and private credit in Macquarie Capital. Deposits grew 20% to A$177.7 billion, enhancing funding stability. Macquarie raised A$32 billion in term funding during the year across various instruments and currencies, maintaining a weighted average term to maturity of 4.5 years for term funding over one year.

The Group held A$81.1 billion in cash and liquid assets as at 31 March 2025, supporting robust liquidity buffers. The liquidity risk management framework continues to emphasize diversity and stability of funding sources, with comprehensive contingency plans in place.

Capital Adequacy and Regulatory Compliance

Macquarie maintained a strong regulatory capital surplus of A$9.547 billion, with total eligible capital of A$41.849 billion against a capital requirement of A$32.302 billion. The Bank Group’s Common Equity Tier 1 capital ratio remained solid, supported by advanced internal ratings-based approaches for credit risk and market risk. The Non-Bank Group’s capital requirements, calculated using Macquarie’s Economic Capital Adequacy Model, increased 13% reflecting business growth and risk profile changes.

Effective tax expense rose modestly to A$1.326 billion with a slightly lower effective tax rate of 26.3%, influenced by the geographic composition of earnings.

International Income and Market Position

International income accounted for 66% of total income (excluding corporate items), with notable growth in Asia and Europe, Middle East and Africa (EMEA) regions. The Group’s diversified global footprint across 31 markets and its leadership in sectors such as renewables, infrastructure, and commodities underpin its resilient performance.

Macquarie’s strategic alignment of interests with clients and staff, combined with robust risk management, continues to support its 56-year record of unbroken profitability.