Macquarie Group reported a 3% rise in net profit to A$1.655 billion for the half year ended September 2025, driven by strong growth in asset management and capital divisions. The group also extended its A$2 billion share buyback program and declared a solid interim dividend.
- Net profit up 3% to A$1,655 million versus prior year
- Macquarie Asset Management profit contribution up 43%
- Macquarie Capital nearly doubles profit contribution
- Commodities and Global Markets profit declines 15%
- A$2 billion on-market share buyback extended for 12 months
Macquarie’s Financial Performance in Context
Macquarie Group Limited has delivered a solid financial performance for the half year ended 30 September 2025, posting a net profit of A$1,655 million. This represents a modest 3% increase compared to the same period last year, though it marks a 21% decline from the previous half year, reflecting some volatility in market conditions and business cycles.
The diversified financial services firm’s results underscore the strength of its varied business lines, with Macquarie Asset Management and Macquarie Capital standing out as key growth drivers. Asset Management’s net profit contribution surged 43% to A$1,175 million, while Macquarie Capital nearly doubled its contribution to A$711 million. These gains were partially offset by a 15% decline in Commodities and Global Markets, which faced subdued conditions in certain commodity sectors.
Business Segment Highlights
Banking and Financial Services also posted a healthy 22% increase in net profit contribution, reaching A$793 million. The group’s income streams remain well diversified, with 56% of net operating income derived from annuity-style sources that provide steady revenue, 16% linked to market-facing activities sensitive to market fluctuations, and 28% from hybrid activities. This balance helps Macquarie navigate varying economic environments with resilience.
Capital Position and Shareholder Returns
Macquarie’s capital position remains robust, with a surplus of A$7.6 billion above regulatory minimums and a Common Equity Tier 1 capital ratio of 12.4%. Reflecting confidence in its financial strength, the Board has approved a 12-month extension of the existing on-market share buyback program, which allows for up to A$2 billion in share repurchases. This move offers flexibility to manage capital efficiently amid evolving market conditions.
Shareholders will also receive an interim ordinary dividend of A$2.80 per share, representing a payout ratio of 64%, payable on 17 December 2025. The dividend is 35% franked, signaling Macquarie’s commitment to returning value while maintaining a conservative capital stance.
Looking Ahead
CEO Shemara Wikramanayake emphasized Macquarie’s strategic positioning to deliver superior medium-term performance, citing its diverse income streams, sector expertise, and prudent risk management culture. The group’s cautious approach to capital, funding, and liquidity aims to provide resilience against ongoing market uncertainties.
Investors will be watching how Macquarie balances growth opportunities with risk management, especially given the mixed performance across its operating groups and the external pressures on commodity markets. The extended buyback and steady dividend provide some reassurance of management’s confidence in the firm’s outlook.
Bottom Line?
Macquarie’s blend of growth and caution sets the stage for navigating market uncertainties while rewarding shareholders.
Questions in the middle?
- How will subdued commodity markets impact Macquarie’s Commodities and Global Markets segment going forward?
- What opportunities does Macquarie Capital see for sustaining its recent profit surge?
- How actively will Macquarie deploy the extended A$2 billion share buyback amid evolving market conditions?