Macquarie Group has reported a net profit of $1.61 billion for the six months to 30 September, up 14 per cent on prior-corresponding period (pcp), but down 23 per cent versus the six months to March (2H24).
Annuity-style activities, the group revealed, generated a combined net profit contribution of $1.61 billion, down 6 per cent on 2H24, although this represented a 25 per cent increase on the pcp.
Meanwhile, markets-facing activities delivered a combined net profit contribution of $1.41 billion, slumping 34 per cent over the half-year and down 10 per cent on 1H24.
During the period, Macquarie’s assets under management fell 2 per cent to $916.8 billion as at 30 September 2024.
This result, the group said, was attributable to “unfavourable foreign exchange movements, outflows in equity strategies and divestments, partially offset by favourable market movements, increased fund investments and improved asset valuations”.
Nonetheless, Macquarie noted on Friday that its financial position “comfortably exceeds” regulatory minimum requirements.
“Macquarie’s improved performance this half-year was underpinned by improved realisations in Macquarie Asset Management and further progress in the digitalisation program in banking and financial services, reflecting the ongoing benefits of our diverse business mix,” chief executive officer Shemara Wikramanayake said.
Breaking down its operating group performance, Macquarie Asset Management (MAM) delivered a net contribution of $684 million, up 68 per cent from 1H24, while Banking and Financial Services recorded a 2 per cent rise in contribution to $650 million.
On the former’s result, it said that MAM’s growth was reflected in higher performance fees, with base fees broadly in line with those in 1H24.
Meanwhile, Commodities and Global Markets saw a 5 per cent loss compared to the pcp to $1.32 billion. Macquarie Capital also witnessed a decrease in net profit contribution – on the back of lower investment related income – down 14 per cent to $371 million.
Moreover, Macquarie announced 1H25’s interim ordinary dividend of $2.6 per share, 35 per cent franked – down on 2H24’s ordinary dividend of $3.85 per share.
Looking ahead, the group said that it continues to maintain a “cautious stance”, with a conservative approach to capital, funding and liquidity “that positions it well to respond to the current environment”.
Wikramanayake added: “Macquarie remains well-positioned to deliver superior performance in the medium term with its diverse business mix across annuity-style and markets-facing businesses; 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.”
