Macquarie’s Commodities Segment Declines 15% Amid Overall Profit Rise
Macquarie Group Limited reported a 3% increase in profit for the half year ended 30 September 2025, driven by strong performances in asset management and capital advisory, while declaring a 35% franked interim dividend of $2.80 per share.
- Profit attributable to ordinary equity holders rose 3% to $1.655 billion
- Revenue increased 6% to $8.691 billion
- Macquarie Asset Management profit up 43%, Macquarie Capital up 92%
- Banking and Financial Services grew 22%, Commodities and Global Markets declined 15%
- Interim dividend declared at $2.80 per share, 35% franked
Macquarie’s Solid Half-Year Performance Amid Mixed Segment Results
Macquarie Group Limited (ASX – MQG) has released its Appendix 4D and Interim Financial Report for the half year ended 30 September 2025, revealing a modest but notable 3% increase in profit attributable to ordinary equity holders to $1.655 billion. This growth was underpinned by a 6% rise in revenue to $8.691 billion, reflecting the diversified financial services group's ability to navigate a complex macroeconomic environment.
The Group’s operating performance was marked by divergent trends across its core business segments. Macquarie Asset Management (MAM) delivered a standout result with a 43% increase in net profit contribution to $1.175 billion, driven primarily by higher performance fees from private markets-managed funds and co-investors. This segment’s assets under management rose 2% to nearly $960 billion, supported by strong equity raisings and investments across real assets, credit, and real estate.
Macquarie Capital also posted a remarkable 92% profit increase to $711 million, buoyed by robust advisory fee income, particularly in mergers and acquisitions across the Americas and Australia-New Zealand, and growth in its private credit portfolio. The segment’s committed private credit portfolio expanded to $25.9 billion, reflecting Macquarie’s strategic focus on flexible capital solutions and infrastructure investments.
Banking and Financial Services (BFS) grew 22% to $793 million, supported by an 11% increase in the loan portfolio to $178.4 billion and a 12% rise in deposits to $192.5 billion. The home loan portfolio saw a 13% increase, driven by strong demand in owner-occupier lending. BFS continues to focus on expanding client distribution and modernising technology to enhance scalability and customer experience.
Conversely, Commodities and Global Markets (CGM) experienced a 15% decline in profit contribution to $1.113 billion, impacted by reduced lending and financing activity, lower inventory management and trading income, and higher credit impairment charges. Despite this, CGM maintained strong client hedging activity and received multiple industry awards, underscoring its market leadership.
Balance Sheet Strength and Capital Position
Macquarie’s balance sheet remains robust, with total assets increasing 9% to $484.2 billion, driven by growth in loan assets and trading assets. Deposits rose 12% to $198.8 billion, reflecting strong client engagement in BFS. The Group’s capital adequacy ratios remain well above regulatory minimums, with a Common Equity Tier 1 (CET1) ratio of 12.4% and a leverage ratio of 4.7%, providing a solid buffer amid ongoing market uncertainties.
The Group declared an interim dividend of $2.80 per share, franked at 35%, payable on 17 December 2025. This follows a final dividend of $3.90 per share paid in July 2025, reflecting Macquarie’s commitment to delivering shareholder returns while maintaining capital flexibility.
Strategic Outlook and Risk Management
Macquarie’s management maintains a cautious stance given the prevailing economic conditions, including inflationary pressures, geopolitical risks, and market volatility. The Group’s diversified income streams and disciplined risk management framework position it well to adapt to evolving market dynamics. Notably, impairments related to Green Investments increased, and the Group continues to invest in technology and digitalisation to support scalable growth.
Looking ahead, Macquarie aims to leverage its global expertise across asset management, capital advisory, banking, and commodities to capture growth opportunities aligned with structural trends such as private capital expansion, infrastructure development, and energy transition.
The audit review conducted by PricewaterhouseCoopers found no material issues, affirming the integrity of the financial statements. Additionally, Macquarie announced the conclusion of its audit tender process, with KPMG set to become the auditor from the 2027 financial year following an 18-month transition.
Bottom Line?
Macquarie’s balanced growth and strong capital position set the stage for navigating ongoing economic uncertainties and pursuing strategic opportunities.
Questions in the middle?
- How will Macquarie’s Commodities and Global Markets segment address the recent profit decline?
- What impact will upcoming accounting standard changes have on future financial reporting?
- How will the transition to KPMG as auditor influence governance and investor confidence?