Macquarie Group Limited has posted a 5% increase in net profit for FY2025, driven by strong asset management and banking growth, while advancing its sustainability and digital innovation agenda.
- 5% increase in net profit after tax to $3.715 billion
- Final dividend declared at $3.90 per share, 35% franked
- Macquarie Asset Management profit contribution up 33%
- Commodities and Global Markets profit down 12%
- Strong capital position with CET1 ratio of 12.8% (APRA basis)
Solid Financial Performance Amid Global Uncertainty
Macquarie Group Limited (ASX: MQG) has released its 2025 Appendix 4E and Annual Report, revealing a 5% increase in net profit after tax to $3.715 billion for the year ended 31 March 2025. Revenue rose 2% to $17.208 billion, reflecting resilience across its diversified financial services operations despite a complex global environment marked by geopolitical tensions and evolving economic conditions.
The company’s return on equity improved to 11.2%, up from 10.8% in the prior year, although it remains below the decade-long average. Management highlighted ongoing efforts to enhance operational efficiency, including a 7% reduction in headcount since late 2023, and a continued focus on strengthening risk culture and regulatory compliance.
Divergent Segment Performance
Macquarie’s four operating groups showed mixed results. Macquarie Asset Management (MAM) delivered a robust 33% increase in net profit contribution to $1.61 billion, driven by higher performance fees and gains on asset sales. Banking and Financial Services (BFS) also grew, with an 11% rise in net profit contribution to $1.38 billion, supported by loan portfolio growth and digital banking investments.
Conversely, Commodities and Global Markets (CGM) experienced a 12% decline in net profit contribution to $2.83 billion, impacted by subdued conditions in certain commodity markets, particularly in energy and emissions. Macquarie Capital’s results were broadly flat at $1.04 billion, with higher advisory fees offset by lower investment-related income.
Capital Strength and Shareholder Returns
Macquarie maintained a strong capital position, with a Common Equity Tier 1 (CET1) ratio of 12.8% on an APRA basis and 17.6% on an internationally comparable Basel III basis. The Board declared a final dividend of $3.90 per share, 35% franked, payable on 2 July 2025, bringing total dividends for the year to $6.50 per share. The company also continued its on-market share buy-back program, returning over $1 billion to shareholders during the year.
Sustainability and Innovation at the Forefront
Macquarie’s commitment to sustainability was underscored by achieving net zero emissions for its own operations (Scopes 1 and 2) by FY2025. The company is actively investing in climate solutions, including renewable energy, energy transition infrastructure, and digital ecosystems. Notable investments include partnerships in offshore wind, battery storage, and digital infrastructure across multiple regions.
Digital innovation remains a priority, with BFS advancing its digital banking platform and deploying AI-driven fraud prevention technologies. The company’s focus on technology and data analytics aims to enhance client experience and operational resilience.
Governance and Remuneration
Macquarie’s governance framework continues to emphasize risk management, ethical conduct, and alignment of remuneration with performance and risk outcomes. The Board Remuneration Committee applied significant oversight in determining executive pay, reflecting both financial results and non-financial factors such as risk culture and regulatory compliance. The CEO’s awarded profit share decreased by 5% to $22.5 million, while total comparable Executive KMP profit share increased by 3% to $82.3 million.
Post-Year-End Developments
Subsequent to the reporting period, Macquarie entered into a sales agreement to dispose of its North American and European public investments business within Macquarie Asset Management. The transaction, subject to regulatory approvals, is expected to close by the end of 2025 and is not anticipated to materially affect shareholders’ equity.
Bottom Line?
Macquarie’s strong financial results and strategic focus on sustainability and digital innovation position it well for navigating ongoing global uncertainties.
Questions in the middle?
- How will the disposal of North American and European public investments impact Macquarie’s future earnings?
- What are the implications of ASIC’s licence conditions on Macquarie Bank for the group’s risk culture and compliance?
- How will Macquarie balance growth in traditional commodity markets with its expanding climate and digital investments?