Macquarie Group posts strong FY26 earnings growth

The Macquarie Group Ltd (ASX: MQG) share price is in focus after the company reported a 30% lift in full-year net profit to $A4,847 million and set a record half-year result.

What did Macquarie Group report?

• Net profit after tax: $A4,847 million, up 30% on FY25
• 2H26 net profit: $A3,192 million, up 93% on 1H26
• Earnings per share: $A12.77, up 30%
• Final dividend: $A4.20 per share (35% franked), total FY26 dividend $A7.00 per share (35% franked)
• Return on equity: 14.0% (FY25: 11.2%)
• International income: 68% of total income

What else do investors need to know?

Macquarie’s operating groups all posted growth, with notable strength from Commodities and Global Markets, where profits grew 49% due to gains from asset sales and higher hedging activity. The Asset Management division benefitted from higher performance fees and completed the sale of its public investments business overseas.

Banking and Financial Services’ performance was driven by growth in loan and deposit balances, despite some margin pressure and rising technology costs.

The group’s capital position remains sound, with the APRA Basel III Common Equity Tier 1 capital ratio holding steady at 12.8%. Term funding of $A29.9 billion was raised in FY26, and total deposits rose 25% to $A221.5 billion.

What did Macquarie Group management say?

Managing Director and Chief Executive Officer Shemara Wikramanayake said:

Each of our businesses used its specialist expertise in navigating the current environment, identifying opportunities that support long-term growth and delivering positive outcomes for our clients and communities.

What’s next for Macquarie Group?

Looking ahead, Macquarie signalled a cautious approach, maintaining a strong balance sheet that positions the business to weather changing conditions. The dividend payout ratio remains at 50% to 70%, and the on-market share buyback has now concluded.

Management flagged that factors like global economic conditions, interest rate moves, regulatory shifts and foreign exchange impacts could influence near-term performance. Still, Macquarie sees itself well-placed for medium-term growth, backed by diverse income streams and ongoing investment.

Macquarie Group share price snapshot

Over the past 12 months, Macquarie Group shares have risen 25%, outperforming the S&P/ASX 200 Index (ASX: XJO) which has risen 8% over the same period.

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The post Macquarie Group posts strong FY26 earnings growth appeared first on The Motley Fool Australia.

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Motley Fool contributor Laura Stewart has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Macquarie Group. The Motley Fool Australia has positions in and has recommended Macquarie Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.