Macquarie Group (ASX: MQG; ADR: MQBKY) today provided an update on the first quarter of its 2027 financial year ahead of its 2026 Annual General Meeting in Sydney. Macquarie Group Managing Director and Chief Executive Officer, Shemara Wikramanayake, confirmed that trading conditions were satisfactory for the three months to 30 June 2026 (1Q27).
Macquarie Asset Management (MAM) net profit contribution1 was down on prior corresponding period (pcp) (1Q26), driven by the divestment of the North American and European public investments business in 2H26.
Banking and Financial Services (BFS) net profit contribution was up on pcp, driven by volume growth in the loan portfolio and BFS deposits, partially offset by lower margins due to changes in portfolio mix and lending and deposit competition.
Commodities and Global Markets (CGM) net profit contribution was substantially up on pcp, driven by increased income from Commodities compared to subdued conditions in the pcp and increased Asset Finance income due to higher activity.
Macquarie Capital net profit contribution was up on pcp, driven by higher investment-related and brokerage income, partially offset by lower advisory fees on a strong pcp.
Macquarie Group's financial position exceeds the Australian Prudential Regulation Authority's (APRA) Basel III regulatory requirements. The Bank Group APRA Basel III Common Equity Tier 1 capital ratio was 13.8 per cent (Harmonised: 18.9 per cent2) at 30 June 2026, up from 12.8 per cent at 31 March 2026. The Bank Group's APRA leverage ratio was 4.5 per cent (Harmonised: 5.0 per cent2), Liquidity Coverage Ratio (LCR) was 192 per cent3 and Net Stable Funding Ratio (NSFR) was 113 per cent at 30 June 2026.
On 19 June 2026, the acquisition of ordinary shares pursuant to the Macquarie Group Employee Retained Equity Plan was completed. A total of $A734 million4 of shares were purchased at a weighted average price of $A238.80 per share.
On 2 July 2026, the Dividend Reinvestment Plan (DRP) in respect of the 2H26 dividend was satisfied in full through the issuance and allocation of ordinary shares at a price of $A233.12 per share5.
First quarter business highlights
Ms Wikramanayake noted the following 1Q27 highlights for each Operating Group:
- MAM had $A748.0 billion in assets under management at 30 June 2026, up four per cent on 31 March 2026, primarily driven by increased net asset valuations, favourable market movements, and positive net flows. During the quarter $A4.2 billion of capital was raised, with a further $A9.3 billion of positive net flows, $A5.3 billion of capital was invested and $A1.5 billion was divested, resulting in $A20.3 billion of capital to deploy at 30 June 2026.
- BFS deposits6 of $A223.3 billion at 30 June 2026, up four per cent on 31 March 2026. The home loan portfolio7 of $A191.5 billion was up six per cent on 31 March 2026; funds on platform of $A163.3 billion were up five per cent on 31 March 2026; and the business banking loan portfolio of $A18.7 billion was up three per cent on 31 March 2026.
- CGM Commodities contribution increased on the pcp, primarily driven by increased trading activity in North American Gas and Power, compared to subdued conditions in the pcp. Financial Markets contribution was broadly in line with continued strong client activity across sectors encompassing Foreign exchange and Interest rate risk management, Financing and Futures. Asset Finance contribution increased on the pcp, due to higher activity.
- Macquarie Capital had higher investment-related and brokerage income, partially offset by lower advisory fees on a strong pcp. As at 30 June 2026, the Private Credit portfolio of $A27.2 billion8 was in line with 31 March 2026 and the equity portfolio of $A5.1 billion9 was broadly in line with 31 March 2026.
Outlook
Macquarie 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.
The range of factors that may influence Macquarie's short-term outlook include:
- Market conditions including: global economic conditions, inflation and interest rates, significant volatility events, and the impact of geopolitical events
- Completion of period-end reviews and the completion of transactions
- The geographic composition of income and the impact of foreign exchange
- 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. This is due to its deep expertise across diverse sectors in major markets with structural growth tailwinds; patient adjacent growth across new products and new markets; ongoing investment in the operating platform; a strong and conservative balance sheet; and a proven risk management framework and culture.
Highlights from the address of Chair, Glenn Stevens
In addition to announcing Shemara Wikramanayake's upcoming retirement, Macquarie Group Chair, Glenn Stevens, outlined the Group's strong year ended 31 March 2026 (FY26) performance with each of the four operating groups contributing to the improved result, "which says something about the breadth of the Group's businesses," he said.
Mr Stevens said the "Group delivered a profit of $A4.8 billion in FY26, up 30 per cent on the previous year's result. A disciplined approach, including the reallocation of capital towards those activities most likely to offer attractive risk‑adjusted returns, remains key to ongoing improvement."
Mr Stevens said the Group ended FY26 with "a common equity tier 1 capital ratio of 12.8 per cent as per APRA standards," and that the Board resolved to pay a total dividend of $A7.00 per share for the year.
In addition, Mr Stevens highlighted the continued focus on risk culture and remediation of regulatory issues. "Macquarie's remediation work for past regulatory and compliance shortcomings continues, with good progress on platform and data upgrades and regulatory engagement," he said.
Macquarie remains well-positioned to continue playing a constructive role as a financier, adviser, investor and fiduciary in the sustainability space. Mr Stevens said, "Macquarie remains committed to the goals of the Paris Agreement. The longstanding view remains that an orderly energy transition is the only way to balance availability, affordability, and emissions reduction."
As previously noted to shareholders, Macquarie announced William Vereker joined the Macquarie Group Board as an independent director in February 2026. Mr Stevens noted Mr Vereker is based in Europe, and he brings considerable global experience in financial services, both as an executive and as a director. Jillian Broadbent has decided to step down from the Macquarie Group and Macquarie Bank Boards in December 2026, having served eight years. Mr Stevens acknowledged Ms Broadbent's "significant contribution to the Boards over this time, including as Chair of the Remuneration Committee."
