Macquarie Group has reported its financial results for the third quarter of the fiscal year ending March 31, 2025. The company's net profit after tax (NPAT) for the nine months ending December 31, 2024, was consistent with the same period in 2023.
The annuity-style businesses, including Macquarie Asset Management (MAM) and Banking and Financial Services (BFS), saw a substantial increase in net profit contribution for the December quarter compared to the previous year. This growth was attributed mainly to increased volume growth in BFS and higher performance fees and investment income in MAM.
Conversely, Macquarie's markets-facing businesses, such as Commodities and Global Markets (CGM) and Macquarie Capital, experienced a decline in net profit contribution. This decrease was primarily due to subdued conditions in certain commodity markets and timing issues related to income recognition on North American Gas and Power contracts.
Despite these mixed results, Macquarie Group's financial position remains strong. The company reported a group capital surplus of $A8.5 billion as of December 31, 2024. The Bank Group’s Common Equity Tier 1 capital ratio stood at 12.6%, while other financial ratios like the Leverage Ratio and Liquidity Coverage Ratio were comfortably above regulatory requirements.
Shemara Wikramanayake, Managing Director and CEO of Macquarie Group Limited, noted that "Macquarie’s Operating Group performance for FY25 year to date was broadly in line with the prior corresponding period."
For specific business highlights during this quarter:
- MAM had assets under management amounting to $A942.7 billion by December 31, an increase driven by favorable foreign exchange movements.
- BFS reported total deposits of $A163.8 billion at the end of December.
- CGM saw decreased contributions from commodities but improved performances in asset finance.
- Macquarie Capital's fee income rose due to higher mergers and acquisitions fees.
Looking ahead, Ms. Wikramanayake expressed confidence: “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...and a proven risk management framework.”
The outlook remains cautious amid global economic uncertainties, inflation rates, geopolitical events, tax changes, and market volatility.