Macquarie Group reported a net profit after tax for the nine months to 31 December, broadly in line with the year prior, on the back of a stronger performance by its asset management business.
In an ASX listing on Tuesday, the group said the combined third quarter net profit contribution by Macquarie Asset Management (MAM) and Banking and Financial Services (BFS) was “substantially up” on the prior corresponding period.
Over the fiscal year to date, higher performance fees and investment income in MAM drove the net profit contribution substantially up on FY2023–24 YTD, while continued volume growth and lower operating expenses, partially offset by margin compression, drove an increased contribution in BFS.
The profit contribution made by Macquarie’s markets-facing businesses, including Commodities and Global Markets (CGM) and Macquarie Capital, was substantially down in both the third quarter and fiscal year to date, the group added.
In a broader snapshot of business activity, Macquarie revealed MAM’s assets under management stood at $942.7 billion at 31 December, up 3 per cent on 30 September 2024.
Private markets assets under management was $371.7 billion, driven by fund divestments, offset by favourable foreign exchange movements and increased net asset valuations.
At 31 December, private markets had equity under management of $212.9 billion, with $27.4 billion of equity to deploy after raising $3.8 billion in new equity, investing $7.3 billion and divesting $12.7 billion during the quarter.
Looking ahead, Macquarie group managing director and chief executive officer Shemara Wikramanayake said: “We continue to maintain a cautious stance, with a conservative approach to capital, funding and liquidity that positions us well to respond to the current environment.”
The range of factors that may influence the group’s short-term outlook include market conditions, completion of period-end reviews and transactions, the geographic composition of income and the impact of foreign exchange, and potential tax or regulatory changes.
“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,” Wikramanayake said.
