Macquarie’s 1H26 Profit Rises 3% to A$1.655bn; Assets Under Management Hit A$959bn
Macquarie Group reported a solid half-year profit increase despite a sequential dip, boosted by strong asset management and capital markets performance. The group also extended its share buyback and declared a steady interim dividend.
- 1H26 net profit of A$1,655 million, up 3% year-on-year
- Assets under management grew 5% to A$959.1 billion
- Strong capital surplus of A$7.6 billion above regulatory requirements
- Macquarie Asset Management and Capital profits surged, Commodities and Global Markets declined
- Board approved extension of A$2 billion on-market share buyback
Macquarie’s Half-Year Financial Snapshot
Macquarie Group Limited has announced a net profit after tax of A$1,655 million for the first half of fiscal 2026, marking a modest 3% increase compared to the same period last year. However, this result represents a 21% decline from the second half of fiscal 2025, reflecting the challenges of a volatile economic environment. The firm’s assets under management (AUM) rose 5% year-on-year to reach A$959.1 billion, underscoring steady growth in its investment portfolio despite market headwinds.
Diverse Business Performance Highlights
The performance across Macquarie’s operating groups was mixed but largely positive. Macquarie Asset Management (MAM) delivered a standout result with a 43% jump in net profit contribution, driven primarily by higher performance fees. Banking and Financial Services (BFS) also saw a 22% increase in profits, benefiting from growth in home loans and deposits, although margin pressures and rising technology costs weighed on the segment.
Conversely, Commodities and Global Markets (CGM) experienced a 15% profit decline, impacted by increased operating expenses related to platform investments and remediation costs. Meanwhile, Macquarie Capital nearly doubled its net profit contribution, buoyed by stronger mergers and acquisitions activity and private credit income.
Capital Strength and Shareholder Returns
Macquarie’s balance sheet remains robust, with a capital surplus of A$7.6 billion above the Australian Prudential Regulation Authority’s (APRA) minimum requirements. The Bank Group’s Common Equity Tier 1 ratio stood at a healthy 12.4%, while liquidity metrics such as the Liquidity Coverage Ratio and Net Stable Funding Ratio comfortably exceeded regulatory thresholds.
Reflecting confidence in its financial position, the Board approved an extension of the on-market share buyback program, allowing up to A$2 billion in purchases over the next 12 months. To date, over A$1 billion has been repurchased at an average price of A$189.80 per share. Additionally, Macquarie declared a 1H26 interim dividend of A$2.80 per share, up from the previous year but below the final dividend paid in 2H25, maintaining a payout ratio within its target range.
Looking Ahead Amid Uncertainty
CEO Shemara Wikramanayake emphasised a cautious outlook, highlighting ongoing macroeconomic and geopolitical uncertainties that could influence short-term performance. Factors such as global inflation, interest rate movements, and foreign exchange volatility remain key considerations. Nevertheless, Macquarie’s diversified income streams, strategic investments, and conservative capital management position it well for medium-term growth.
The group also announced the conclusion of its audit tender process, with the Board recommending KPMG as the new auditor subject to regulatory approvals, marking a significant governance update ahead of the 2027 Annual General Meeting.
Bottom Line?
Macquarie’s resilient half-year results and strategic capital moves set the stage for navigating an uncertain economic landscape.
Questions in the middle?
- How will Macquarie’s diverse segments perform amid ongoing global economic volatility?
- What impact will the extended share buyback have on Macquarie’s capital flexibility and share price?
- How might regulatory changes or tax uncertainties affect Macquarie’s future profitability?
