Macquarie reports A$4.85bn profit in FY26 with CEO succession planned

Robust FY26 Profit Growth Highlights Macquarie’s Breadth

Macquarie Group (ASX:MQG) closed FY26 with a striking 30% jump in net profit to A$4.85 billion, underscoring the strength and diversity of its operations. Each of the Group’s four operating segments, Macquarie Asset Management (MAM), Banking and Financial Services (BFS), Commodities and Global Markets (CGM), and Macquarie Capital (MacCap), contributed to this uplift, reflecting a well-balanced business model.

Return on equity climbed to 14%, up from 11% in prior years, aligning with Macquarie’s decade-long performance trend. Operating income grew 13% to A$19.5 billion, while earnings per share increased 30% to A$12.77. The Board declared a final dividend of A$4.20 per share, bringing the full-year payout to A$7.00 per share, maintaining a payout ratio within the 50-70% target range.

Leadership Transition: Greg Ward to Succeed Shemara Wikramanayake

In a significant leadership update announced at the 2026 Annual General Meeting, long-serving CEO Shemara Wikramanayake revealed her retirement effective 6 November 2026, after nearly four decades with the company and eight years as CEO. The Board has appointed Greg Ward, currently Head of Banking and Financial Services, as her successor, pending regulatory and shareholder approvals.

Ward’s 30-year tenure at Macquarie includes 14 years as Global CFO and a pivotal role in transforming BFS into a major player in Australian retail and business banking. The Board expressed confidence in his ability to build on Wikramanayake’s legacy of sustained growth and cultural stewardship.

Wikramanayake praised the strength of Macquarie’s team and culture, noting her confidence in Ward’s leadership. Ward, in turn, acknowledged the strong platform left by his predecessor and emphasized his commitment to advancing Macquarie’s momentum.

Solid 1Q27 Performance and Capital Strength

Trading conditions in the June 2026 quarter (1Q27) were described as satisfactory. MAM’s net profit contribution declined compared to the prior corresponding period due to the divestment of North American and European public investments, while BFS saw growth driven by loan portfolio and deposit volume increases despite margin pressures.

CGM reported a substantial profit increase, buoyed by heightened commodities trading activity and asset finance gains. MacCap’s profit rose on stronger investment-related and brokerage income, offset partially by lower advisory fees.

Macquarie’s capital position remains robust, with a Bank Group Common Equity Tier 1 (CET1) capital ratio of 13.8% as per APRA standards (harmonised Basel III basis at 18.9%) at 30 June 2026. The Group’s liquidity metrics are strong, with a Liquidity Coverage Ratio of 192% and a Net Stable Funding Ratio of 113%. The Group capital surplus increased to A$10 billion, providing a solid buffer against regulatory requirements.

Risk Culture and Regulatory Engagement Continue

Macquarie continues to focus on remediation of past regulatory and compliance issues, with ongoing platform upgrades and active engagement with regulators. The Board reaffirmed its commitment to a culture where staff are encouraged to speak up and where issues are reported and addressed transparently.

Recent shareholder resolutions on governance matters were unanimously recommended against by the Board, reflecting confidence in current management and governance frameworks.

Sustainability and Climate Commitments Remain Central

Macquarie reiterated its commitment to the Paris Agreement and an orderly energy transition, balancing availability, affordability, and emissions reduction. With over A$30 billion in assets under management dedicated to green and climate-resilient investments, the Group continues to support decarbonisation efforts across carbon-intensive sectors through practical solutions.

Medium-Term Outlook Emphasises Diverse Growth and Conservative Capital

Looking ahead, Macquarie maintains a cautious stance amid uncertain global economic conditions, inflation, interest rates, and geopolitical risks. The Group is well-positioned for medium-term growth, leveraging diverse income streams, ongoing investment in digital platforms, and a strong balance sheet.

Areas of focus include expanding BFS’s digital banking capabilities, growing commodities and asset finance portfolios, and tailoring MacCap’s capital solutions to evolving market opportunities. The Board highlighted the importance of patient, adjacent growth and disciplined capital allocation to sustain performance.