Macquarie Bank Surges 61% Profit, Completes Key North American Asset Sale
Macquarie Bank Limited reported a robust half-year profit of AUD 3.67 billion, up 61% from the prior period, driven by strategic asset sales and strong loan growth. The bank’s capital position remains solid amid ongoing investments in technology and risk management.
- 61% increase in half-year profit to AUD 3.669 billion
- Sale of North American Power, Gas & Emissions business generates significant gain
- Net operating income rises 44% to AUD 7.925 billion
- Loan assets grow 10% to AUD 199.8 billion, supported by home loan expansion
- Common Equity Tier 1 capital ratio remains strong at 12.4%
Strong Profit Growth Amid Strategic Repositioning
Macquarie Bank Limited has delivered a striking financial performance for the half year ended 30 September 2025, posting a consolidated profit after tax of AUD 3.669 billion. This represents a 61% increase from the previous half-year period and more than triples the profit compared to the same period last year. The surge was notably supported by a strategic sale of its North American Power, Gas & Emissions (NAPGE) and certain Canadian physical oil marketing businesses to its parent, Macquarie Group Limited, which generated a substantial gain.
Income and Expense Dynamics
The bank’s net operating income climbed 44% to AUD 7.925 billion, fueled primarily by higher fee and commission income and a significant increase in net other operating income. These gains were partially offset by a slight decline in net interest and trading income, reflecting the transfer of certain commodities businesses and margin compression in lending and deposit portfolios. Operating expenses remained broadly stable at AUD 3.738 billion, with increased technology investments and brokerage fees balanced by lower employment costs due to digitalisation and operational efficiencies.
Loan Growth and Capital Strength
Macquarie Bank’s loan assets expanded 10% to AUD 199.8 billion, driven by growth in home loans within its Banking and Financial Services segment. The bank’s capital adequacy remains robust, with a Common Equity Tier 1 (CET1) ratio of 12.4%, comfortably above regulatory minimums. The bank also maintains a diversified funding profile, with a weighted average term to maturity of 3.7 years, reflecting prudent balance sheet management.
Risk Management and Forward-Looking Provisions
The bank continues to apply rigorous risk management practices, including forward-looking credit loss provisioning based on multiple economic scenarios ranging from upside to severe downside. Expected credit losses increased modestly, reflecting growth in financial markets exposures and some credit deterioration in a small number of accounts. Macquarie’s diversified business model and conservative provisioning approach position it well to navigate economic uncertainties.
Outlook and Governance
There were no material events after the reporting date, and the bank has concluded its audit tender process, recommending KPMG as the new auditor from the 2027 financial year. The board and management reaffirm their commitment to disciplined capital allocation, technology investment, and sustainable growth aligned with the bank’s purpose of empowering innovation and investment for a better future.
Bottom Line?
Macquarie Bank’s strong half-year results and strategic asset repositioning set the stage for continued growth, but investors will watch closely for how evolving economic conditions impact credit risk and income streams.
Questions in the middle?
- How will the divestment of North American commodities businesses affect Macquarie’s future earnings mix?
- What impact will new accounting standards effective from 2026 have on financial reporting and capital ratios?
- How sensitive is Macquarie’s credit loss provisioning to shifts in the economic scenarios, especially under a severe downside case?
