Home loan portfolio approaches $130 billion
Macquarie Group reported a net profit of $1.6 billion for the half-year ending Sept. 30, a 14% increase compared to the same period in 2023, but down 23% from the six months ending March 31.
The bank’s home loan portfolio grew to $129.9 billion, representing 5.6% of the Australian market and marking a 9% increase since March 2024. This growth was primarily fuelled by demand in low loan-to-value ratio (LVR) and owner-occupier lending.
“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,” said Shemara Wikramanayake (pictured above), managing director and chief executive of Macquarie Group.
Macquarie’s annuity-style businesses – comprising Macquarie Asset Management, Banking and Financial Services, and parts of its Commodities and Global Markets division – reported a combined profit contribution of $1.6 billion, up 25% year-on-year. However, market-facing businesses, including Macquarie Capital and much of Commodities and Global Markets, saw a 10% drop in profit contribution to $1.4 billion, reflecting weaker trading conditions.
See the highlights from the Macquarie Group 2025 half-year result. Full details: https://t.co/HJ1JFkLrQg pic.twitter.com/uQ9a01eJ8A
— Macquarie Group (@Macquarie) October 31, 2024
The group’s net operating income rose 4% year-on-year to $8.2 billion, though it was down 8% from the previous half. Operating expenses remained flat compared to the previous year at $5.9 billion, while international income comprised 65% of total earnings.
Macquarie’s financial position remains robust, with a surplus capital position of $9.8 billion, down from $10.7 billion in March 2024. Its Common Equity Tier 1 capital ratio stood at 12.8%, comfortably above regulatory requirements.
Total customer deposits increased by 6.7% to $158.3 billion. The group raised an additional $23.6 billion in term funding across various markets to support ongoing growth and liquidity requirements.
Macquarie declared an interim dividend of $2.60 per share, up from $2.55 in the first half of 2024, with a payout ratio of 61%. The dividend will be partially franked at 35% and is scheduled for payment on Dec. 17.
In addition, the board extended its on-market share buyback program by 12 months, allowing up to $2 billion in shares to be repurchased. As of Oct. 31, Macquarie had repurchased $1 billion worth of shares at an average price of $189.80 each.
The group maintained a cautious outlook, noting potential headwinds from global economic volatility, inflation, and geopolitical risks. However, Wikramanayake expressed confidence in Macquarie’s medium-term potential, citing its diverse business model and conservative approach to risk and liquidity.
“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,” she said.
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