The Macquarie Group Ltd (ASX: MQG) share price falls 4% after reporting its FY27 half-year result.
Macquarie is a global ASX financial share with four divisions: banking and financial services (BFS), Macquarie Asset Management (MAM), investment banking (Macquarie Capital) and a commodities and global markets (CGM) segment.
FY27 half-year result
Here are some of the highlights from the report for the six months to September 2026:
- Net profit up 50% year on year to $2.5 billion
- Earnings per share (EPS) grew 49% to $6.52
- Annualised return on equity (ROE) fell to 13.8% (from 14%) in FY26
- Interim dividend of A$3.25, up 16% year on year
What happened?
Three of the four divisions reported higher earnings, while one saw a significant decline.
Asset management delivered a 28% rise of net profit to $1.51 billion, primarily thanks to the gain on the sale of Macquarie AirFinance, partly offset by lower performance fees due to the timing of asset realisations.
Banking and financial services delivered a net profit contribution of $841 million, up 6% year on year. This reflected growth of both the loan portfolio and BFS deposits, partially offset by lower margins – reflecting changes in its product mix and competition for both loan portfolio and BFS deposits, higher credit provisions and higher expenses.
CGM saw an 83% increase in net profit to $2.03 billion. This was driven by higher net interest and trading income across all major business lines due to increased client activity and trading opportunities across specific commodities and financial markets, as well as asset sales in asset finance.
Finally, Macquarie Capital saw net profit decline 61% to $278 million. That was because lower investment-related income primarily driven by timing of asset realisations and lower mergers and acquisitions fees, partially offset by higher brokerage income.
APRA $100 million decision
APRA announced that it has identified Macquarie had miscalculated the amount of capital required to support risks within the non-bank during a recent capital review.
The financial regulator said the breach, which dates back to 2019, resulted in lower required capital for the non-bank, however the overall financial stability of the group, including the bank, was not undermined at any point.
Macquarie has reportedly addressed the understatement of its required capital and a $100 million governance overlay has been put in place.
This $100 million overlay is in addition to an existing $500 million capital overlay that APRA applied to Macquarie Bank in 2021.
Outlook for the Macquarie share price
Macquarie continues to grow and that’s impressive at a time when there are tough economic conditions.
I think the business isgreat and I’d be very happy if I were a shareholder. But, I’m not.
If I were waiting to buy, I’d want to invest when economic conditions are weakening and the Macquarie share price falls.
For now, there are other ASX dividend shares I’d rather buy, but Macquarie is a great business.
