Macquarie Group’s shares (ASX: MQG) continued the recent rally, with a gain of 3.79% on the day, as FY results outperformed expectations. The company markets investors with its robust financial performance for the fiscal year ending 31 March 2025 with a net profit of $3.72 billion, marking a 5% increase compared to the previous year. This result surpassed consensus analyst estimates and helped boost sentiment after a tricky start to the year. Macquarie’s share price is down 8% on a YTD basis, but has rallied strongly over the past month of trading, adding an impressive 18.92%.
The group’s net operating income also rose on the year, with a 2% gain to $17.21 billion, while operating expenses remained stable at $12.14 billion. A substantial 66% of Macquarie’s total income originated from international markets, showcasing the group’s broad global reach. Additionally, the assets under management were recorded at $941 billion as of 31 March, reflecting a 3% increase from 30 September of the previous year.
The company maintains a strong financial position, exceeding regulatory minimum requirements with a group capital surplus of $9.5 billion. The Common Equity Tier 1 (CET1) ratio stood at 12.8%. Macquarie’s return on equity (ROE) improved to 11.2% from 10.8% in FY 2024, indicating enhanced profitability.
Macquarie’s board has extended the on-market share buyback program by 12 months, with up to $2.0 billion authorized for repurchase. By 8 May, $1.013 billion of shares were already bought back. The company also declared a final dividend of $3.90 per share, bringing the total yearly payout to $6.50 per share with a payout ratio of 67%.
CEO Shemara Wikramanayake emphasized the resilience of Macquarie’s client franchises and their ability to remain profitable despite market uncertainties over the fiscal year.
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With this week’s close for MQG above $200, the price is within range of previous resistance from back in 2022, where the $210 level provided a challenge that took a little over 2 years to re-test. Bulls will no doubt be hoping that recent results can help propel the stock back to earlier highs, yet in a changing economic environment, a dose of caution may be warranted.
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