Shares declined 1.1% following the earnings release, reflecting investor caution despite solid top-line growth, likely due to muted margin commentary and capital absorption concerns rather than a clear positive catalyst.
- Full-year profit rose 30% to $4.847 billion, with return on equity improving to 14% from just over 11% the prior year.
- Macquarie Asset Management grew revenue 27% to $2.6 billion but saw a slight 1% decline in private markets equity under management, mostly due to foreign exchange.
- Banking and Financial Services profit increased 17% to $1.61 billion, powered by a 28% growth in home loans book and 25% growth in deposits.
- Commodities and Global Markets was the largest contributor, up 49%, benefitting from asset finance growth and increased volatility-driven trading in North American Gas and Power.
- Capital absorption increased by about $1 billion, reflecting continued investments in loan portfolios, market risk, and private credit, with capital surplus rising to $9.3 billion but possibly weighing on investor sentiment.
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