Macquarie Group has reported a full-year net profit of $3.7 billion for FY25, up 5 per cent from the previous year, driven by strong contributions from its asset management and banking businesses.
The diversified financial group said international income accounted for 66 per cent of total earnings, underscoring its global footprint, while assets under management stood at $941 billion – broadly flat year-on-year but up 3 per cent from September.
Return on equity climbed to 11.2 per cent for the full year, and 12.5 per cent on an annualised basis for the second half.
Chief executive Shemara Wikramanayake said Macquarie's diversified business model continued to provide resilience.
“Against a backdrop of ongoing market and economic uncertainty, Macquarie’s client franchises remained resilient over the past year, delivering new business origination and underlying income growth, contributing to our history of unbroken profitability,” she said.
Macquarie’s net operating income came in at $17.21 billion, up two per cent on FY24, while operating expenses were broadly flat at $12.14 billion.
Macquarie Asset Management was a standout, with net profit contribution jumping 33 per cent to $1.61 billion, bolstered by higher performance fees and the sale of its helicopter leasing business.
The banking division also posted an 11 per cent lift in its net profit contribution to $1.38 billion, reflecting loan and deposit growth.
However, earnings from Commodities and Global Markets fell 12 per cent to $2.8 billion due to softer hedging demand in energy markets and timing issues in North American contracts.
Macquarie Capital remained steady, delivering a flat net profit contribution of $1.0 billion, on the back of higher advisory and brokerage fee income and higher net interest income from the private credit portfolio.
The group declared a final dividend of $3.90 per share (35 per cent franked), taking the full-year dividend to $6.50.
Moreover, Macquarie said its capital position remains strong with a $9.5 billion surplus and CET1 ratio of 12.8 per cent (17.6 per cent on a harmonised basis) as at 31 March.
Looking ahead, Macquarie said it will remain disciplined on capital deployment, maintaining a cautious stance amid global economic and geopolitical headwinds.
It highlighted a range of factors that may influence its short-term outlook including market conditions, inflation and interest rates, significant volatility events, and the impact of geopolitical events.
Moreover, Macquarie also flagged the completion of period-end reviews and the completion of transactions as consequential, as well as the geographic composition of income and the impact of foreign exchange, alongside potential tax or regulatory changes and tax uncertainties.
“Macquarie remains well-positioned to deliver superior performance in the medium term with established, diverse income streams; deep expertise across diverse sectors in major markets with structural growth tailwinds; patient adjacent growth across new products and new markets; ongoing investment in our operating platform; a strong and conservative balance sheet; and a proven risk management framework and culture,” Wikramanayake concluded.
