Macquarie Group (ASX:MQG), a global financial services provider known for its diverse operations across asset management, banking, and commodities markets, has announced a 14% year-on-year increase in half-year net profit after tax to $1.61bn for the period ending 30 September 2024, driven largely by higher performance fees in Macquarie Asset Management (MAM) and further digitalisation in Banking and Financial Services (BFS). This result, however, marked a 23% decrease from the previous half-year, reflecting challenges across its market-facing segments.
The company’s annuity-style activities — encompassing MAM and BFS — delivered $1.61bn in profit, up 25% on the prior corresponding period. MAM’s success stemmed from increased performance fees, benefiting from asset realisations in green investments. The Banking and Financial Services division, while experiencing margin compression due to competitive pressure in the lending and deposit markets, posted steady growth from advisory fees and an expanded loan portfolio.
Meanwhile, Macquarie’s market-facing operations, including Commodities and Global Markets (CGM) and Macquarie Capital, showed mixed results. CGM, which delivered a profit of $1.32bn, was down 5% as volatility remained subdued, impacting client hedging activity in energy markets. Macquarie Capital saw a 14% decline in profit contributions to $371m, citing lower net income from consolidated investments and increased funding costs associated with equity investments. This drop offset gains in private credit, where lending volumes increased amid higher fee income from Asia-driven brokerage activities.
Macquarie’s capital strength continued, with a regulatory capital surplus of $9.8bn and a Bank Common Equity Tier 1 ratio at 12.8%, exceeding the Australian Prudential Regulation Authority’s requirements. The Board declared an interim dividend of $2.60 per share, representing a 61% payout ratio.
Reflecting on the results, CEO Shemara Wikramanayake stated, “Macquarie’s results highlight the resilience and adaptability of our business mix amid evolving market conditions, particularly through our asset management and digital finance expansion.”