, Australia

Australia’s Macquarie well-capitalised despite lower profits

Net profit fell by 32% for the fiscal year ended 31 March.

Australia-headquartered Macquarie Group’s (MGL) financial and business metrics remain sound despite reporting lower profits for fiscal year 2024.

MGL has announced a net profit of A$3.52b for the fiscal year 2024 that ended on 31 March. Whilst this is 32% lower than the previous year, the  group's financial and business metrics remain sound and consistent with our expectations, S&P said.

“MGL's global footprint and diverse businesses mean that a drop in earnings from some businesses or geographies is typically offset by growth in others,” the ratings agency said in a non-rating commentary. 

Notably, for the fiscal year, about two-thirds of the group's income came from outside Australia.

ALSO READ: How banks should rethink pricing

Its four main businesses—banking and financial services, asset management, advisory and principal investing, and commodities and capital markets—were said to have contributed well to MGL’s earnings, S&P noted.

The consolidated group's capital surplus of A$10.7n over the regulatory requirements as of 31 March, and provides it with headroom for its 70% dividend payout.

The capital surplus also gives enough headroom for MGL to continue its A$2b on-market share buyback announced in 2023, which is about one-third complete, S&P said. 

“We forecast that Macquarie Bank will remain strongly capitalized and maintain our risk-adjusted capital ratio soundly above 10%,” S&P concluded.

Follow the link for more news on

Join Asian Banking & Finance community
Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

Top News

APAC’s affluent move $700b to digital wealth management
These firms are adopting hybrid models that combine digital tools with limited human assistance.
Vietnam digital bank Cake debuts cloud connect CMS with Visa
It is the first bank to implement Visa Cloud Connect on Google Cloud Infrastructure. 
Cards & Payments
Hong Leong Bank's profit outlook positive amidst SME lending boost
It is projected to maintain tangible common equity at approximately 14% of risk-weighted assets.
Retail Banking
Banks gain 50% more tech capacity with productivity focus
Generative AI tools to streamline tasks can yield productivity gains of up to 30%.
Economy