Macquarie Group Ltd (ASX: MQG) Share Price and News
Introduction to Macquarie Group
Macquariе Group (ASX:MQG) is a global financial sеrvicеs group with hеadquartеrs in Sydnеy, Australia but assets all over the world.
It is one of thе largеst financial institutions in Australia, with ovеr 20,000 еmployееs and opеrations in 34 markеts around the world, vatering to business clients.
Macquariе offers Asset Management, Banking and Financial Services, Commodities and Global Markets Trading and money management (through Macquarie Capital). Unlike the Big Four, it has focused more on institutional services and its own investments, although it has an emerging consumer bank that has gained substantial traction in recent years.
Macquarie Group's History
This company had its beginning in 1969 as a subsidiary of UK bank Hill Samuel Australia. At first, Macquarie was primarily concerned with providing advisory and investment banking services.
The journey that Macquarie has taken to become a global financial leader is a remarkable one.
For 30 years under successive CEOs Allan Moss, Nicholas Moore and Shamara Wikramanayake, the Martin Place headquartered bank has done so and been very successful. This is largely due to its focus on disciplined and bold investing strategies, which have enabled Macquarie to identify attractive investments in markets where other players may not be able to do so.
Today it undertakes management of assets that are worth more than A$900 billion. It also has a solid home lending bank that has grown its market share from 0.5% to over 5% in barely a decade.
In recent months, its momentum has slowed down given rising interest rates and slowing economic activity - both have hit infrastructure and real estate more than other sectors, and this is Macquarie's specialty.
Macquarie Group's Future Outlook
Macquarie Bank follows an April 1-March 31 financial year and will report FY25 results during May. For the past couple of years, results have been a mixed bag. Its total AUM have continued to grow slowly, the retail deposits and loans business continues to grow as have its investments, although commodities have been more nuanced due to market conditions.
CEO Shemara Wikramanayake told investors the company was 'well-positioned to deliver superior performance in the medium term with its diverse business mix'. In the first half of FY25, it made a net profit of $1.6bn - up 14% on 12 months ago but down 23% on 6 months ago - along with a 9.9% Return on Equity.
Is Macquarie Group a Good Stock to Buy?
In our view, not at this exact point in time given the FY25 result may be received with some disappointment, or perhaps investors may be concerned about short-term impacts caused by Donald Trump's trade war.
However, Macquarie Group is a solid business without a shadow of a doubt and will bounce back in the years ahead, so it is always one to keep an eye on, and perhaps get into after its FY25 result is released.
Our Stock Analysis
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Frequently Asked Questions
Macquariе Group Limitеd, еstablishеd in 1969 in Sydnеy, is one of Australia's largest banks. It operates a consumer banking division, but it better known for its asset management and financial advisory services. It has over A$900bn in AUM.