Macquarie Group Limited (ASX:MQG) Announces 1Q26 Financial Update
Financial Performance
Macquarie Group reported a decrease in net profit contribution for the first quarter of the 2026 financial year compared to the same period last year. The decline was offset by improved performances in Banking and Financial Services and Macquarie Capital, while Macquarie Asset Management and Commodities and Global Markets saw lower contributions.
Capital and Regulatory Position
The group maintains a strong financial position, with a capital surplus of $7.6 billion as of June 30, 2025, comfortably exceeding Australian Prudential Regulation Authority (APRA) requirements. Key capital ratios include a Bank CET1 Level 2 ratio of 12.7% and a Liquidity Coverage Ratio of 184%.
Share Buyback Extension
Macquarie announced an extension of its on-market share buyback program by up to $2 billion for an additional 12 months. As of July 23, 2025, $1.013 billion of ordinary shares had been acquired on-market at an average price of $189.80 per share.
Management Changes
Alex Harvey will step down as Chief Financial Officer (CFO) and leave the Executive Committee effective December 31, 2025. He will retire mid-2026 following a handover to Frank Kwok, who has been with Macquarie for 28 years and will join the Executive Committee on January 1, 2026.
Outlook
Macquarie maintains a cautious outlook, emphasising a conservative approach to capital, funding, and liquidity. The company is well-positioned to navigate current market conditions, with diverse income streams and a strong balance sheet.
Chair’s Comments
Chair Glenn Stevens highlighted the group’s improved performance in FY25, noting a 5% increase in profit to $3.7 billion. He emphasised disciplined capital allocation and a focus on risk culture, stating that “Risk culture is central” and the board is committed to addressing shareholder concerns.
Motley Fool contributor Matt Burgess 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.
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