Macquarie’s Commodities Segment Declines 12% Despite Overall Profit Growth

Solid Profit Growth Despite Market Uncertainty

Macquarie Group Limited has announced a full-year net profit after tax of A$3,715 million for FY25, marking a 5% increase over the previous year. The second half of the fiscal year was particularly strong, with net profit rising 30% to A$2,103 million compared to the first half. This performance underscores Macquarie's resilience amid ongoing global economic and geopolitical uncertainties.

Stable Assets Under Management and Diversified Income

Assets under management remained broadly stable at A$941 billion as of March 31, 2025, reflecting a balance between increased fund investments and divestments. International income accounted for 66% of total income, highlighting Macquarie’s global footprint. The company’s net operating income edged up 2% to A$17.2 billion, while operating expenses held steady, demonstrating disciplined cost management.

Segment Performance Highlights

Macquarie Asset Management (MAM) was a standout performer, delivering a 33% increase in net profit contribution to A$1.61 billion, boosted by higher performance fees and the sale of the Macquarie Rotorcraft helicopter leasing business. Banking and Financial Services (BFS) also posted solid growth, with an 11% rise in net profit contribution to A$1.38 billion, driven by loan portfolio expansion and deposit growth despite margin pressures.

Conversely, the Commodities and Global Markets (CGM) segment experienced a 12% decline in net profit contribution to A$2.83 billion. This was largely due to subdued client hedging activity in key commodity markets such as EMEA gas and power, as well as timing effects in North American gas and power contracts. Financial Markets within CGM, however, showed strength, particularly in structured foreign exchange and equities.

Capital Position and Shareholder Returns

Macquarie’s capital position remains robust, with a group capital surplus of A$9.5 billion above APRA’s regulatory minimums. The Bank Group’s Common Equity Tier 1 ratio stood at 12.8%, down slightly from the prior year but comfortably above required thresholds. Total deposits increased 20% to A$177.7 billion, supporting funding stability.

The Board declared a final ordinary dividend of A$3.90 per share, 35% franked, bringing the full-year dividend to A$6.50 per share. The payout ratios remain within the company’s target range, reflecting a balanced approach to rewarding shareholders while maintaining capital flexibility. Additionally, Macquarie extended its on-market share buyback program by 12 months, having repurchased over A$1 billion in shares to date.

Outlook and Strategic Positioning

CEO Shemara Wikramanayake emphasized Macquarie’s cautious stance amid uncertain market conditions, highlighting the company’s strong and conservative balance sheet, diverse income streams, and proven risk management framework. The firm remains focused on disciplined capital deployment and patient growth in new markets and products, positioning it well for medium-term performance despite near-term challenges.