Macquarie Group Posts 5% Profit Rise, Extends $2bn Buyback
Macquarie Group reported a 5% increase in net profit to A$3.7 billion for FY25, driven by strong asset management and banking results despite a dip in commodities. The group also extended its $2 billion share buyback and declared a solid final dividend.
- Net profit up 5% to A$3.715 billion for FY25
- Macquarie Asset Management profit up 33%
- Commodities and Global Markets profit down 12%
- Extended $2 billion on-market share buyback for 12 months
- Final dividend of A$3.90 per share, 35% franked
Macquarie’s Solid Full-Year Performance
Macquarie Group Limited has released its full-year results for the fiscal year ended 31 March 2025, reporting a net profit of A$3.715 billion, a 5% increase compared to the previous year. This growth was underpinned by strong contributions from its Macquarie Asset Management and Banking and Financial Services divisions, which helped offset a decline in the Commodities and Global Markets segment.
The second half of FY25 was particularly robust, with profit rising 30% to A$2.103 billion compared to the first half. This suggests a positive momentum heading into the new fiscal year, despite ongoing challenges in certain commodity markets.
Diverse Income Streams and Segment Highlights
Macquarie’s four operating groups continue to deliver a balanced mix of income sources. Macquarie Asset Management (MAM) led the charge with a 33% jump in net profit contribution to A$1.61 billion, reflecting strong client franchises and growth in annuity-style income. Banking and Financial Services (BFS) also posted solid growth, up 11% to A$1.38 billion, benefiting from stable and recurring revenue streams.
Conversely, Commodities and Global Markets (CGM) saw a 12% decline in profit to A$2.83 billion, impacted by subdued commodity market conditions. Macquarie Capital remained steady, contributing A$1.04 billion, broadly in line with the prior year.
Capital Management and Shareholder Returns
Macquarie’s financial position remains strong, comfortably exceeding regulatory capital requirements. The Board has extended its on-market share buyback program by up to A$2 billion for another 12 months, providing flexibility to manage capital efficiently amid market conditions. The timing and scale of buybacks will depend on surplus capital, market opportunities, and business needs.
Shareholders will also benefit from a final ordinary dividend of A$3.90 per share, 35% franked, bringing the total dividend for FY25 to A$6.50 per share. This reflects Macquarie’s commitment to returning value while maintaining capital discipline.
Outlook and Strategic Positioning
CEO Shemara Wikramanayake emphasized Macquarie’s strong positioning to deliver medium-term growth, citing diverse income streams, sector expertise, and a conservative balance sheet. The group remains cautious but opportunistic, focusing on risk-adjusted capital deployment and patient growth in new markets and products.
While commodity markets remain subdued, Macquarie’s diversified portfolio and disciplined approach provide resilience. Investors will be watching how the group navigates evolving market conditions and capitalises on structural growth tailwinds.
Bottom Line?
Macquarie’s disciplined capital management and diversified earnings set the stage for steady growth amid market uncertainties.
Questions in the middle?
- How will subdued commodity markets impact Macquarie’s CGM segment in FY26?
- What opportunities will Macquarie pursue with capital freed by the extended share buyback?
- Will dividend policy remain stable if market volatility persists?
