Macquarie share price dips on mixed quarterly results

Macquarie released its nine-month performance update this morning.

| More on:
A man holds his hand under his chin as he concentrates on his laptop screen and reads about the ANZ share price

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Macquarie Group Ltd (ASX: MQG) share price is edging lower today.

Shares in the S&P/ASX 200 Index (ASX: XJO) diversified financial stock closed yesterday trading for $227.89. In morning trade on Tuesday, shares are changing hands for $227.60 apiece, down 0.1%.

For some context, the ASX 200 is up 0.3% at this same time.

This follows the release of Macquarie's third-quarter trading update.

Read on for the highlights.

Macquarie share price slips on flat profits

The Macquarie share price has dipped lower after the company reported that its net profit after tax (NPAT) for the nine months to 31 December was flat year on year.

The profit contribution from Macquarie Asset Management (MAM) and Banking and Financial Services (BFS) – Macquarie's annuity-style businesses – was up "substantially" compared to the same nine months last year.

Continued volume growth and lower operating expenses, which were reported to be partially offset by margin compression, drove the increased contribution in BFS. Higher performance fees and investment income boosted the profit contribution from MAM.

Likely not helping the Macquarie share price today, the nine-month profit contribution from the company's Commodities and Global Markets (CGM) and Macquarie Capital – its markets-facing businesses –was "substantially down" on the prior corresponding period.

Management said the decline in profits from this segment was mainly due to subdued conditions in certain commodity markets. Profits also took a bit of a hit from the unfavourable impact of the timing of income recognition, primarily on North American Gas and Power contracts in CGM. This was said to be partially offset by higher fee and commission income in Macquarie Capital

The third quarter also saw Macquarie's board approve an extension of the on-market share buyback of up to $2 billion for a further 12 months as of November. On 10 February, Macquarie had acquired $1.01 billion of shares on-market at an average price of $189.80 per share.

Macquarie noted its financial position "comfortably exceeds regulatory requirements", with a group capital surplus of $8.5 billion and a bank common equity tier 1 (CET1) ratio of 12.6%.

Now what?

Looking at what could impact the Macquarie share price in the months ahead, Macquarie said it would continue to maintain a cautious stance, with a conservative approach to capital, funding, and liquidity in response to the current environment.

Commenting on the outlook, Macquarie CEO Shemara Wikramanayake said:

Macquarie remains well-positioned to deliver superior performance in the medium term with its diverse business mix across annuity-style and markets-facing businesses; deep expertise across diverse sectors in major markets with structural growth tailwinds; patient adjacent growth across new products and new markets; ongoing investment in our operating platform; a strong and conservative balance sheet; and a proven risk management framework and culture.

The Macquarie share price is up 21% in a year.

Should you invest $1,000 in Altium right now?

Before you buy Altium shares, consider this:

Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now... and Altium wasn't one of them.

The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

And right now, Scott thinks there are 5 stocks that may be better buys...

See The 5 Stocks *Returns as of 30 April 2025

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Macquarie Group. The Motley Fool Australia has positions in and has recommended Macquarie Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Financial Shares

Woman and man calculating a dividend yield.
Financial Shares

Here's what Macquarie thinks QBE shares are worth after reviewing 18 global insurers

Macquarie has just issued a new note on QBE shares.

Read more »

A woman sits at her computer with her hand to her mouth and a contemplative smile on her face as she reads about the performance of Allkem shares on her computer
Financial Shares

Should I buy the dip on Macquarie shares now?

Atop their reliable passive income, Macquarie shares offer growth potential, according to this leading expert.

Read more »

Nervous customer in discussions at a bank.
Financial Shares

Guess which ASX 200 bank stock just crashed 19% on shock news

Investors have been hitting the sell button in a panic this afternoon.

Read more »

Two CEOs shaking hands on a deal.
Financial Shares

This ASX 300 stock is jumping on surprise merger news

This stock could be having a very big makeover.

Read more »

Man smiling at a laptop because of a rising share price.
Financial Shares

How this quality ASX 200 stock is 'ideally placed' for years of growth

A leading expert expects more outperformance from this high-flying ASX 200 stock.

Read more »

Cheerful boyfriend showing mobile phone to girlfriend in dining room. They are spending leisure time together at home and planning their financial future.
Financial Shares

Looking for financial stocks outside the big 4 banks?

With the financial sector down to start the year, could these stocks provide upside?

Read more »

A male investor sits at his desk looking at his laptop screen holding his hand to his chin pondering whether to buy Macquarie shares
Financial Shares

This leading broker just upgraded AMP shares to 'outperform'. Here's why

This top broker just turned bullish on AMP shares. But why?

Read more »

A woman sits at her computer with her chin resting on her hand as she contemplates her next potential investment.
Financial Shares

Up 53% in a year, why is this ASX 200 financial stock leaping higher again today?

Investors are sending the ASX 200 financial stock soaring on Wednesday. Let’s see why.

Read more »