The Macquarie Group Ltd (ASX: MQG) share price is in focus after the investment bank reported its FY25 result.
Macquarie is a global investment bank with four divisions – investment banking, (regular) banking and financial services (BFS), asset management through Macquarie Asset Management (MAM), and Commodities and Global Markets (CGM).
Macquarie FY25 half-year result
Here are some of the main highlights from the 12 months to 31 March 2025:
- Assets under management (AUM) reached $941 billion, flat year on year, but up 3% from 30 September 2024
- FY25 second half net profit after tax (NPAT) of $2.1 billion, up 30% compared to the FY25 first half
- Annual net profit after tax of $3.7 billion, up 5% year on year
- Final dividend of $3.90 per share, up 1.3% year on year
- Full-year dividend of $6.50 per share, up 1.6% year on year
Macquarie said its profitability was resilient during the period, despite ongoing economic uncertainty and subdued market conditions in many parts of the world, with continued new business origination and underlying income growth.
The investment bank said its asset management division achieved a net profit of $1.2 billion in FY25, up 33% year on year. This was driven by higher performance fees and the gain on the sale of the Macquarie Rotorcraft helicopter leasing business.
It said its banking and financial service division delivered a net profit of $1.38 billion, up 11% year on year. This reflected loan growth and deposit growth, as well as lower expenses because of a lower average headcount, though this was partially offset by a lowering of the profit margin and higher credit (loan) impairment charges.
The commodities and global markets business saw net profit fall 12% because of a smaller contribution from commodities risk management due to lower client hedging activity because of “subdued conditions in certain commodity markets”. This was partially offset by an increased contribution from financial markets.
The investment bank, Macquarie Capital, achieved a net profit of $1.04 billion, which was flat compared to FY24. This reflected higher advisory and brokerage fee income and higher net interest income from the private credit portfolio, offset by lower investment-related income.
Returns for shareholders
With the ongoing Macquarie share buyback, a total of $1 billion has been acquired at an average Macquarie share price of $189.80.
Its annual dividend represented a dividend payout ratio of 67% and its dividend policy remains to pay 50% to 70% of profit as a dividend.
Final thoughts on the Macquarie share price
Macquarie said that it continues to maintain a cautious stance with a conservative approach to its capital and liquidity. The investment bank said it remains well-positioned to deliver superior performance in the medium-term.
I’d describe it as the best bank on the ASX, but it’s not at incredible value right now. However, market sell-offs can be more appealing. There are other ASX dividend shares that look more appealing to me.
