Macquarie Group to handle earnings drop following business sales to Nomura

Businesses in other markets should offset a drop in earnings in some businesses.

Macquarie Group should be able to handle a drop in earnings following the sale of investments businesses in the West, according to S&P Global Ratings.

Assets under management will fall from A$941b as of 31 March 2025, following the completion of the same of its North American and European public investments business to Nomura, S&P said.

“We do not believe that this will negatively impact the business’ returns, as it will allow the group to focus on its private markets business,” the rating agency added.

The Australian financial services provider is expected to enjoy consistent growth in its local banking business in the fiscal year ending March 2026.

“In our view, Macquarie Group's global footprint and diverse businesses mean that a drop in earnings from some businesses or geographies is typically offset by growth in others. In the past year, about two-thirds of the group's income came from outside Australia.” S&P said.

In the fiscal year that ended in March 2025, Macquarie Group reported a net profit of A$3.7b, a 5% increase compared to the previous year.

Ongoing loan and deposit growth in the bank, higher asset management performance fees in the private markets business, and the sale of the helicopter leasing business, all lifted its profit.

It was offset by subdued conditions, lower inventory management, and trading in the commodities business. S&P said.

The contribution of the investment bank was flat in fiscal 2025.

“We forecast that Macquarie Bank will remain strongly capitalized and will maintain our risk-adjusted capital ratio soundly above 10%. As of 31 March 2025, its common equity Tier 1 regulatory ratio was 12.8%,” S&P said.