Changes are happening - please bear with us while we update our site.

Changes are happening - please bear with us while we update our site. Click here to give us your advice and feedback.

Macquarie (ASX:MQG) share price falls on HY25 result

The Macquarie Group Ltd (ASX:MQG) share price is under the spotlight after the global investment bank reported its FY25 half-year result.

The Macquarie Group Ltd (ASX: MQG) share price is down 3% after the global investment bank reported its FY25 half-year result.

Macquarie has four segments – a retail banking and financial services segment (BFS), an asset management division (Macquarie Asset Management), an investment bank (Macquarie Capital) and a ‘commodities and global markets’ (CGM) division.

Macquarie FY25 half-year result

The ASX financial share has reported how it performed for the six months to September 2024. Here are some of the main highlights:

  • Assets under management (AUM) of A$916.8 billion, up 3% year on year
  • International income 65% of total income
  • Net profit of A$1.6 billion, up 14% year on year and down 23% half-on-half
  • Interim dividend of A$2.60 per share, up 2%

Macquarie said that its defensive/annuity-style activities, which include the operations of Macquarie Asset Management (MAM), BFS and certain CGM businesses, saw a combined operating net profit of $1.6 billion, up 25% year on year and down 6% compared to the second half of FY24.

Market-facing activities, which is work done by Macquarie Capital and most businesses in CGM, saw a combined operating net profit contribution of A$1.4 billion – down 10% year on year and down 34% half-on-half.

MAM profit jumped 68% year on year to A$407 million thanks to higher performance fees.

BFS profit increased 2% year on year to A$638 million thanks to growth of its loan portfolio and BFS deposits, offset by a margin decline and run-off of the car loan portfolio.

CGM profit declined 5% year on year to A$1.3 billion, due to a decreased contribution from commodities, particularly in “risk management due to the impact of subdued volatility on client hedging activity, partially offset by an increased contribution from resources.”

Macquarie Capital’s profit declined 14% year on year to A$371 million because of lower investment-related income due to reduced credit and other impairment reversals, as well as higher funding costs for a growing equity investment portfolio.

Outlook for the Macquarie share price

Macquarie said it continues to maintain a cautious stance, approach to capital, funding and liquidity that positions it well to respond to the current environment.

I believe Macquarie is one of the highest quality ASX financial shares Aussies can buy. However, it has risen close to 40% over the past year – I don’t think it’s good value today considering there are still large uncertainties about inflation, interest rates and other factors. The global picture doesn’t seem to me as exciting as the Macquarie share price is implying at this high valuation.

However, over the long-term I think Macquarie can keep excelling. But, there are other ASX dividend shares I’d rather buy first.

$50,000 per year in passive income from shares? Yes, please!

With interest rates UP, now could be one of the best times to start earning passive income from a portfolio. Imagine earning 4%, 5% — or more — in dividend passive income from the best shares, LICs, or ETFs… it’s like magic.

So how do the best investors do it?

Chief Investment Officer Owen Rask has just released his brand new passive income report. Owen has outlined 10 of his favourite ETFs and shares to watch, his rules for passive income investing, why he would buy ETFs before LICs and more.

You can INSTANTLY access Owen’s report for FREE by CLICKING HERE NOW and creating a 100% FREE Rask Account.

(Psst. By creating a free Rask account, you’ll also get access to 15+ online courses, 1,000+ podcasts, invites to events, a weekly value investing newsletter and more!)

Unsubscribe anytime. Read our TermsFinancial Services GuidePrivacy Policy. We’ll never sell your email address. Our company is Australian owned.

Information warning: The information on this website is published by The Rask Group Pty Ltd (ABN: 36 622 810 995) is limited to factual information or (at most) general financial advice only. That means, the information and advice does not take into account your objectives, financial situation or needs. It is not specific to you, your needs, goals or objectives. Because of that, you should consider if the advice is appropriate to you and your needs, before acting on the information. If you don’t know what your needs are, you should consult a trusted and licensed financial adviser who can provide you with personal financial product advice. In addition, you should obtain and read the product disclosure statement (PDS) before making a decision to acquire a financial product. Please read our Terms and Conditions and Financial Services Guide before using this website. The Rask Group Pty Ltd is a Corporate Authorised Representative (#1280930) of AFSL #383169.

At the time of publishing, Jaz does not have a financial or commercial interest in any of the companies mentioned.
Skip to content