Macquarie Delivers Strong FY2026 Growth as All Four Major Businesses Lift Earnings

About Macquarie Group Ltd

Macquarie Group Ltd (ASX: MQG) is a diversified global financial services group operating across asset management, retail and business banking, wealth management, advisory, and risk and capital solutions across debt, equity, financial markets and commodities. Founded in 1969, the group now operates in 30 markets, employs 19,124 people globally and reported total assets of $A540.1 billion and total equity of $A36.9 billion at 31 March 2026. The FY2026 result also extended Macquarie’s 57-year record of unbroken profitability.

A stronger group result built on broader business momentum

The key feature of Macquarie’s FY2026 result was that growth was not isolated to one or two segments. Management said earnings increased in each of the group’s major business areas, with all four client franchises contributing to the uplift. That matters because it suggests the result was supported by the breadth of Macquarie’s model rather than a single cyclical tailwind. While the company acknowledged that some significant transactions helped the full-year outcome, it also said underlying performance improved and that a disciplined reallocation of capital toward higher risk-adjusted return opportunities remained central to the earnings improvement.

The group’s financial highlights reinforce that picture. Net operating income rose to $A19.477 billion, operating expenses increased 5 per cent to $A12.748 billion, and return on tangible equity improved to 14.8 per cent from 12.7 per cent. The effective tax rate increased to 27.6 per cent from 26.2 per cent, while net tangible assets per ordinary share rose 7.7 per cent to $86.74.

Commodities and markets drove much of the earnings acceleration

The biggest single driver of growth came from Commodities and Global Markets. CGM delivered a net profit contribution of $A4.221 billion, up 49 per cent on FY2025. Management attributed this to stronger contributions across the business, particularly improved income from Global Gas and Power and Global Oil, increased financing origination, continued strong client hedging activity in financial markets, and gains linked to the divestment of the OnStream meters platform in Asset Finance. In an environment shaped by energy disruption, commodity volatility and a greater need for risk management, CGM appears to have been particularly well positioned.

This is important because CGM remains one of Macquarie’s most market-sensitive businesses, but its performance this year also shows the earnings power that can come from combining financing, risk management, market access, execution and logistics in volatile markets. It also helps explain why Macquarie continues to emphasise sector expertise and client relevance in energy, commodities and infrastructure-linked areas.

Asset management, banking and capital also contributed strongly

Macquarie Asset Management delivered a net profit contribution of $A2.602 billion, up 27 per cent on the prior year. The increase was driven primarily by higher performance fees. Assets under management rose 8 per cent to $A722.1 billion, excluding the impact of the divested public investments business, supported by increased investments, valuation changes and net flows. MAM also raised $A20.9 billion in new equity from clients during the year and invested $A25.2 billion across 32 investments, highlighting the scale of both capital raising and capital deployment.

Banking and Financial Services also delivered a strong result, with net profit contribution rising 17 per cent to $A1.610 billion. The key operational drivers were continued growth in the loan portfolio and deposits. Over the year, BFS loans increased 24 per cent to $A199.9 billion, deposits increased 25 per cent to $A215.3 billion, and funds on platform reached $A155.9 billion. Within that, the home loan portfolio rose 28 per cent to $A181.3 billion and the Business Banking loan portfolio increased 8 per cent to $A18.1 billion. Macquarie also continued to position BFS as a digitally differentiated banking franchise, noting that its share of the Australian deposit and home loan markets has grown to more than 6 per cent and 7 per cent respectively.

Macquarie Capital completed the set, delivering a net profit contribution of $A1.491 billion, up 43 per cent on FY2025. The growth was driven by higher income from equity investments, increased mergers and acquisitions fees, stronger brokerage revenue and private credit portfolio performance, partly offset by higher impairment charges and losses from associates and joint ventures. The result reinforces how Macquarie Capital continues to benefit when transaction activity and private capital deployment remain active.

Capital, dividends and shareholder returns remained solid

Macquarie’s capital position remained strong. The Banking Group ended FY2026 with a common equity tier 1 ratio of 12.8 per cent under APRA standards, and 17.5 per cent on a strict Basel III basis. Capital held for non-bank businesses was also above minimum requirements. This capital strength supported the board’s decision to declare a final dividend of $A4.20 per share, taking total FY2026 dividends to $A7.00 per share. That payout remains consistent with Macquarie’s longstanding policy of returning between 50 and 70 per cent of earnings to shareholders.

At the same time, Macquarie said it had not purchased shares under the extended buyback since the board-approved extension announced in November 2025. Given strong business growth and prevailing market conditions, the board has now resolved to conclude the on-market share buyback and instead continue focusing on redeploying shareholder capital into opportunities with attractive expected returns.

Risk, remediation and the external environment remain in focus

Despite the strength of the result, Macquarie was clear that the external environment remains complex. Management pointed to increasing global uncertainty, armed conflict, disruption to energy and raw material supply chains, technological disruption and the rapid expansion of AI as major factors shaping the outlook. The chair also said Macquarie’s remediation work for past regulatory and compliance shortcomings has continued to progress, with platform and data upgrades advancing and APRA partially removing some regulatory overlays. During the year, Macquarie also reached a court-approved settlement with ASIC over historical transaction reporting failures and made a decision to facilitate repayment of 100 per cent of net capital invested in the Shield Master Fund by investors who had accessed it through the Macquarie wrap platform in 2022 and 2023.

These matters are significant because they show that while earnings momentum has improved materially, governance, compliance and conduct remain central to the investment case and to management credibility.

Outlook

Macquarie enters FY2027 with stronger earnings, a high-quality capital position, improved returns and contributions from all four major operating groups. The main positives are the breadth of earnings growth, balance sheet strength, continued expansion in banking and asset management, and strong performance from commodities and markets. The main watchpoints are the still-uncertain geopolitical backdrop, compliance remediation and the need to keep allocating capital carefully as technology, energy and market conditions keep shifting. Even so, Macquarie’s FY2026 result shows a group that is still executing effectively across a diverse global platform.