Macquarie Group (ASX:MQG): What the Latest Annual Report Says About Its Growth Prospects

Sonal Goyal

20 October 2026 03:22 PM AEDT

Macquarie Group (ASX:MQG): What the Latest Annual Report Says About Its Growth Prospects

Image Source: Shutterstock

You are reading a free article with opinions that may differ from the recommendation given by Kalkine in its paid research reports. Become a Kalkine member today to get access to our research reports, in-depth technical and fundamental research. Learn more

Start Your Free Trial Now!

Key highlights

Macquarie reported FY26 net profit of A$4,847 million, up 30%, for the year ended 31 March 2026.
Second-half net profit of A$3,192 million was a record half-year result, up 93% on the first half.
The FY26 ordinary Dividend was A$7.00 per share, 35% franked, a 55% payout ratio.

Macquarie Group Limited (ASX:MQG) announced its full-year results for the year ended 31 March 2026 (FY26) on 8 May 2026. The release covered profit, income, expenses, Capital ratios, dividends and the contribution of each operating group.

About Macquarie Group

Macquarie Group is a global financial services group with businesses in asset management, banking, commodities and global markets, and advisory and capital markets. International income accounted for 68% of total income in FY26.

Group results

Net profit after tax attributable to ordinary shareholders was A$4,847 million, up 30%, and Earnings Per Share were A$12.77, up 30%. Net Operating Income was A$19,477 million, up 13%, and operating expenses were A$12,748 million, up 5%. Return on Equity was 14.0% compared with 11.2% in FY25. Income tax expense was A$1,860 million, up 40%, with an effective tax rate of 27.6%.

Second-half profit of A$3,192 million was a record for a half year.

Operating group contributions

Macquarie Asset Management delivered a net profit contribution of A$2,602 million, up 27%. Banking and Financial Services contributed A$1,610 million, up 17%. Commodities and Global Markets contributed A$4,221 million, up 49%, helped by higher risk management and trading income. Macquarie Capital contributed A$1,491 million, up 43%.

Capital and dividend

The Bank Group Level 2 CET1 ratio was 12.8%, or 17.5% on a harmonised basis, with a Leverage Ratio of 4.7%. The final ordinary dividend was A$4.20 per share, 35% franked, bringing the FY26 ordinary dividend to A$7.00 per share, equal to a Payout Ratio of 55%. The company said there is currently no expectation of further share purchases under the extended buy-back.

Risks to consider

Macquarie’s earnings can vary with market conditions, and the company noted that factors such as the economic and geopolitical environment influence its short-term outlook. A record second half was well above the first half, showing earnings can be uneven.

Commodities and trading income depends on Volatility and positioning, and asset sales and performance fees can be irregular. The tax rate rose with the geographic mix of earnings, and franking on the dividend is 35%.

Catalysts to watch

Items to watch include the next half-year result, performance of Commodities and Global Markets, the funds and asset sale pipeline in Macquarie Asset Management and Macquarie Capital, capital ratios, and the company’s short-term outlook factors.

Download Free Report – Explore 3 Stock Ideas & Industry Insights

Unlock 3 stock ideas and key industry insights in our free report. This information is general in nature and does not consider your personal objectives, financial situation, or needs. It is not financial advice.

All investments involve risk—consider independent advice before making any investment decisions.

View 3 Research Reports

Disclaimer:

This article (“Article”) has been prepared by Kalkine Pty Limited (ABN 34 154 808 312) (Australian financial services licence number 425376) (“Kalkine”) and its related bodies corporate who are authorised to provide general financial product advice. Kalkine.com.au and its associated pages are published by Kalkine.

Any information/advice provided in this article is general in nature and does not take into account your objectives, financial situation or needs. You should therefore consider whether the information is appropriate for your objectives, financial situation and needs before acting upon it.

There may be a Product Disclosure Statement, Information Memorandum or other offer document (“Offer Document”) for the securities or other financial products referred to in Kalkine articles. You should obtain a copy of the Offer Document and consider it before making any decision about whether to acquire the security or financial product.

Kalkine strongly recommends that you seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice) before acting on any advice/information in this Article or on the Kalkine website. Not all investments are appropriate for all people.

The information in this Article and on Kalkine website has been prepared from a wide variety of sources, which Kalkine, to the best of its knowledge and belief, considers accurate. Kalkine has made every effort to ensure the reliability of the information contained in its articles (including this Article), newsletters and websites. All information represents our views at the date of publication and may change without notice.

The information in this Article does not constitute an offer to sell securities or other financial products or a solicitation of an offer to buy securities or other financial products.

Kalkine does not issue, sell or deal in any financial products.

This Article may contain information on past performance of particular investments. Please note past performance is neither an indicator nor a guarantee of future performance.

To the extent permitted by law, and excluding any dishonesty or gross negligence by Kalkine, Kalkine disclaims and excludes all liability for any direct, indirect, implied, punitive, special, incidental or other consequential loss or damage arising from the use of or reliance on this Article, the Kalkine website and any information published on the Kalkine website without any warranties or representations by Kalkine to you. To the extent the law prohibits or limits this exclusion, Kalkine limits its liability to the resupply of services.

Please also read our Terms & Conditions and Financial Services Guide for further information.

Employees and/or associates of Kalkine and its related entities may hold interests in the securities or other financial products covered in this Article or on the Kalkine website. Any such employees and associates are required to comply with certain safeguards, procedures and disclosures as required by law.

Some of the images/music that may be used in the Article are copyright to their respective owner(s). Kalkine does not claim ownership of any of the pictures displayed/music used in the Article unless stated otherwise. The images/music that may be used in the Article are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source wherever it was indicated or was found to be necessary.

Kalkine Media Pty Ltd, an affiliate of Kalkine Pty Ltd, may have received, or be entitled to receive, financial consideration in connection with providing information about certain entity(s) covered on its website.