Macquarie chair provides 'cautious' outlook at AGM

Macquarie Group provided an update on the first quarter of its 2027 financial year, with outgoing chief executive Shemara Wikramanayake saying trading conditions were "satisfactory" for the three months to 30 June 2026.

Macquarie Asset Management (MAM) net profit contribution was down on the prior corresponding period (pcp), driven by the divestment of the North American and European public investments business in 2H26.

Wikramanayake said despite this, MAM reported $748 billion in assets under management as at 30 June 2026, up 4% on 31 March 2026, primarily driven by increased net asset valuations, favourable market movements, and positive net flows.

During the quarter $4.2 billion of capital was raised, with a further $9.3 billion of positive net flows, $5.3 billion of capital was invested and $1.5 billion was divested, resulting in $20.3 billion of capital to deploy at 30 June 2026.

Macquarie Capital had higher investment-related and brokerage income, partially offset by lower advisory fees on a strong pcp.

As at 30 June 2026, the Private Credit portfolio of $27.2 billion was in line with 31 March 2026 and the equity portfolio of $5.1 billion was broadly in line with 31 March 2026.

Banking and Financial Services net profit contribution was also up on pcp, driven by volume growth in the loan portfolio and BFS deposits, partially offset by lower margins due to changes in portfolio mix and lending and deposit competition.

Commodities and Global Markets net profit contribution was substantially up on pcp, driven by increased income from commodities compared to subdued conditions in the pcp and increased Asset Finance income due to higher activity.

Macquarie Group said its financial position exceeds the Australian Prudential Regulation Authority's (APRA) Basel III regulatory requirements.

Looking ahead, the board said Macquarie continues to maintain a "cautious stance" with a conservative approach to capital, funding and liquidity to position the business well to respond to the current environment.

Macquarie flagged market conditions, including global economic condition, inflation and interest rates and significant volatility events as a factor that could impact its short-term outlook.

Macquarie chair Glenn Stevens said the group's performance was strong in the first quarter "which says something about the breadth of the group's businesses," he said.

Stevens also highlighted the continued focus on risk culture and remediation of regulatory issues.

"Macquarie's remediation work for past regulatory and compliance shortcomings continues, with good progress on platform and data upgrades and regulatory engagement," he said.

Additionally, Stevens said Macquarie remains well-positioned to continue playing a constructive role as a financier, adviser, investor and fiduciary in the sustainability space.

"Macquarie remains committed to the goals of the Paris Agreement. The longstanding view remains that an orderly energy transition is the only way to balance availability, affordability, and emissions reduction."