Ahead of its 2024 annual general meeting held in Sydney, Macquarie Group managing director and chief executive Shemara Wikramanayake said the bank’s operating group performance was consistent with expectations in 1Q25.
Across its annuity-style businesses, Macquarie Asset Management (MAM) and Banking and Financial Services (BFS), combined NPAT contributions were, similarly, on par with those seen in 1Q24.
According to the group, this was due to volume growth, lower operating expenses and lower credit impairment charges in BFS, although this was offset by margin compression in BFS and timing of performance fees in MAM.
MAM also posted assets under management of $915 billion at 30 June 2024, down 2 per cent on 31 March 2024.
In more positive news for Macquarie’s annuity-style businesses, the BFS division’s deposits of $145.3 billion for the quarter were up 2 per cent year-on-year.
Conversely, contributions from Macquarie’s market-facing businesses, comprising Commodities and Global Markets (CGM) and Macquarie Capital, were down in 1Q25. This, the group said, was primarily due to timing of asset realisations in Macquarie Capital but was partially offset by a continued contribution across the platform in CGM.
Macquarie Capital also claimed to have seen lower investment-related income this past quarter due to higher funding costs and the timing of realisations.
“Commodities performance was up on the pcp, largely driven by improved trading activity in North American gas, power and emissions markets and strong results in the agriculture and resources sectors. Financial markets benefited from continued strong client activity across sectors encompassing foreign exchange and interest rate risk,” Macquarie said on Thursday.
The quarterly update comes after the bank turned in a 32 per cent profit drop for the year ending 31 March 2023, posting a net profit after tax attributable to ordinary shareholders of $3.52 billion.
Speaking on its most recent full-year results, Macquarie Group chair Glenn Stevens said on Thursday that the group’s performance reflected the diversity of the business.
“The volatility in global energy markets that had previously increased customer demand for services and presented trading opportunities gave way to much quieter conditions, and hence lower earnings for the commodities and global markets business,” Stevens said.
“For much of the year, less active financial markets also constrained other areas of the group’s business, particularly in Macquarie Asset Management. However, as long-term investments in growth paid off, banking and financial services and Macquarie Capital both generated higher profits than last year.”
In November, Macquarie’s board also approved an on-market share buyback of up to $2 billion, providing additional flexibility to manage the group’s capital position.
Macquarie on Thursday confirmed that as at 24 July, a total of $908 million of ordinary shares were acquired on-market at an average price of $188.45 per share.
