Macquarie Group Limited

Macquarie reported FY26 net profit after tax of $4.847 billion, up 30% on FY25, and ROE of 14% versus just over 11% in the prior 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 was up to $2.8 billion. Operating expenses increased 5% to $12.7 billion, credit impairment charges were $478 million for the year, and tax expense was $1.9 billion at an effective tax rate of 27.6%. By segment, MAM contributed $2.6 billion (+27%), BFS $1.6 billion to $1.61 billion (+17%), CGM $4.221 billion (+49%), and Macquarie Capital $1.491 billion (+43%). The board declared a second-half dividend of $4.20, making the full-year dividend $7, up from $6.50 last year. Looking ahead, management said MAM base fees should be broadly in line excluding one matter, MAM net other operating income should be up, BFS should see ongoing growth in loans, funds on platform and deposits but face margin pressure, and CGM and Macquarie Capital are expected to be broadly in line subject to market conditions.

Shemara Wikramanayake emphasized the strength and diversification of the franchise, saying the group is positioned in structurally attractive markets and is supported by strong risk management and funding. She highlighted capital deployment across the businesses over the past 18 months, the divestment of public investments in order to free capital for private markets, and the continued buildout of private credit, infrastructure, and other long-duration themes. Her tone was confident about medium-term returns, but she repeatedly noted that short-term results remain sensitive to market conditions, volatility, foreign exchange, and transaction timing.

Frank Kwok focused on the mechanics behind the result: higher net operating income, stronger fee and investment income, and operating expense growth that was below revenue growth. He pointed to the 14% rise in net interest and trading income to $10.2 billion, the 6% rise in fees to $7.2 billion, investment income of $2.8 billion, and a full-year credit impairment charge of $478 million, with $461 million booked in the second half due to greater macro uncertainty. On the balance sheet he cited $30 billion of term funding raised, deposits of $222 billion, a loan portfolio of $253 billion, equity investments of $13 billion, a CET1 ratio of 12.8%, and ongoing capital allocation, including $2.7 billion deployed over the year and the conclusion of the on-market buyback.

Analysts focused on whether FY26’s strong conditions could continue, especially in CGM and Macquarie Capital. Management said the outlook assumes broadly in-line performance versus FY26, but cautioned that prolonged volatility can reduce client appetite and that transaction activity in software and sponsor markets remains subdued. Questions also probed private credit growth and portfolio returns; management said spreads remain around 4% to 4.5%, the book is high quality, but growth is constrained by concentration limits and they want to bring in third-party capital. On MAM performance fees and realizations, management said visibility is good and that fees should continue to come through as funds like MAF2, MIP IV and other open-ended funds mature, though realizations may be lumpy and weighted to the second half.