Macquarie Group Limited

Macquarie reported net profit after tax of $4.847 billion for FY26, up 30% on FY25, and return on equity of 14% versus just over 11% last year. Group net operating income increased 13% to $19.5 billion; net interest and trading income rose 14% to $10.2 billion, fees and commissions increased 6% to $7.2 billion, and investment income increased to $2.8 billion. Operating expenses rose 5% to $12.7 billion, credit impairment charges were $478 million for the year, other impairments were $230 million, income tax expense was $1.9 billion, and the effective tax rate was 27.6%. By segment, MAM profit was just over $2.6 billion, BFS profit was $1.61 billion, CGM profit was $4.221 billion, and Macquarie Capital profit was $1.491 billion. For FY27, management expects MAM base fees broadly in line excluding one matter and net other operating income up, BFS to see ongoing growth in loans, funds on platform and deposits but with margin pressure, Macquarie Capital income broadly in line subject to market conditions, and CGM net operating income broadly in line excluding the OnStream Meters realization. At the group level, compensation ratio and effective tax rate are expected to be broadly in line with historical levels.

Shemara Wikramanayake emphasized that Macquarie’s diversified model and global footprint are driving growth, with nearly 70% of income now coming from markets outside Australia. She highlighted continued investment across the businesses, saying the group has put $4.2 billion of capital to work over the last 18 months, but remains disciplined on risk and funding. Her tone was constructive but cautious: she said the group is optimistic about its long-term opportunities, while near-term results will still depend on market conditions, volatility, and transaction timing.

Pui-Cheun Kwok walked through the income statement and segment drivers, noting that revenue growth outpaced costs: net operating income rose 13% to $19.5 billion while expenses rose 5% to $12.7 billion. He pointed to strong drivers in net interest and trading income, higher fees and commissions, and a large lift in investment income, while also explaining the higher $478 million credit impairment charge as a prudent response to macro uncertainty and loan growth. He also highlighted strong balance sheet support, including $30 billion of term funding raised, deposits of $222 billion, a loan portfolio of $253 billion, CET1 of 12.8%, and capital allocated carefully across businesses; on capital returns, he cited the $7.00 full-year dividend and the decision to end the on-market buyback.

Analysts pressed management on whether FY27 assumptions for CGM and MacCap implied a slowdown from FY26, and management said the outlook assumes broadly in-line performance but with caution around market volatility and conversion of mandates into transactions. Questions also focused on MacCap’s private credit and equity realization pipeline; management said the private credit book remains around $27 billion with returns of 4% to 4.5%, and that realizations are now starting to come through as the equity book seasons, though they will be lumpy. BFS was another focus: management said costs should keep benefiting from scale, with the cost-to-income ratio already moving from 54% to 51%, and they expect continued operating leverage over time.