Macquarie Group (MQG) H1 2025 earnings summary

Executive summary

• Net profit for H1 FY25 was $A1,612m, up 14% year-over-year but down 23% from H2 FY24, with annualised ROE at 9.9%.

• Net operating income rose 4% year-over-year to $A8,216m, while total operating expenses remained flat at $A5,919m.

• Asset under management ended at $A916.8b, down 2% since March 2024 due to FX impacts and equity outflows.

• Geographic income mix remains diversified, with 65% international income and Australia at 35%.

• Interim dividend declared at $A2.60 per share (35% franked), with a 61% payout ratio.

Financial highlights

• Net operating income was $A8,216m (+4% YoY); operating profit before tax up 15% to $A2,297m.

• Basic EPS rose 15% to 424.6c; profit after tax was $A1,611m (+15% YoY).

• Operating expenses were flat year-over-year, reflecting ongoing investment in compliance, digitization, and technology.

• Effective tax rate was 29.9%, consistent with prior periods.

• Customer deposits grew 7% to $A158.3b as at September 2024.

Outlook and guidance

• Base fees in asset management expected to remain stable; green investment income to rise, subject to market conditions.

• BFS anticipates continued loan and deposit growth but ongoing margin pressure.

• Macquarie Capital expects higher transaction activity and steady investment income; CGM forecasts lower commodities income but ongoing client and trading activity.

• Effective tax rate for FY25 expected to be in line with historical levels.

• Cautious stance maintained due to external risks; medium-term outlook remains positive due to business diversification and market positioning.