The Macquarie Group Ltd (ASX: MQG) share price has fallen around 4% after giving an AGM update.
Macquarie is a financial business which has four different segments – banking and financial services (BFS), asset management (Macquarie Asset Management – MAM), investment banking (Macquarie Capital) and the complex commodities and global markets (CGM) segment.
Macquarie FY26 first quarter update
The financial institution business reported that its FY26 first quarter net profit contribution was down year on year, with improved performance in BFS and Macquarie Capital more than offset by lower contributions from MAM and CGM.
MAM’s net profit contribution declined primarily due to the timing of investment-related income from asset sales, partially offset by an increase in performance fees. MAM had $945.8 billion in assets under management (AUM) at 30 June 2025, up 1% since 31 March 2025.
BFS’ net profit increased thanks to loan volume growth and deposit growth, partially offset by profit margin compression because of competition and changes in its portfolio mix.
CGM’s net profit decreased because of a decreased contribution from commodities which recorded lower net interest and trading income in North American Gas and Power, This was partially helped by increased client activity across financial markets and asset finance.
Finally, Macquarie Capital’s net profit contribution was up year on year, thanks to higher income from the private credit portfolio, primarily because of volume growth and increased fee and commission income.
Chief financial officer (CFO) steps down
The CFO Alex Hervey has decided to step down from the role as well as Macquarie’s executive committee. He has been with Macquarie for 28 years.
Hervey intends to retire in the mid-2026s, after completing an extended handover to his successor, Frank Kwok. Kwok has also been with Macquarie for 28 years, most recently as the deputy CFO since March 2024.
Final thoughts on the Macquarie share price
I’m not expecting there to be a sustained profit decline from the business, particularly with interest rates falling in many places around the world.
The sell-off could be a buy-the-dip opportunity, but I prefer to invest when there is widespread market declines, which is when Macquarie tends to be sold down more than the overall market.
