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.
Top Australian Brokers
- Pepperstone - Trading education - Read our review
- IC Markets - Experienced and highly regulated - Read our review
- eToro - Social and copy trading platform - Read our review
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.
Don’t Buy Just Yet
You will want to see this before you make any decisions.
Before you decide which shares to add to your portfolio you might want to take a look at this special report we recently published.
Our experts picked out The 5 best ASX shares to buy in 2025.
We’re giving away this valuable research for FREE.
Click below to secure your copy
