Macquarie Group Ltd (ASX: MQG) shares have risen significantly over the past decade, largely thanks to profit growth. Based on the numbers it's predicted to generate, the next five years could also be promising for the ASX financial share.
Profit generation is integral as it's the ultimate driver of the (Macquarie) share price over the long term.
There's no guarantee that past success will continue. However, Macquarie has shown impressive skill at targeting the right industries and countries to invest in to deliver growth for shareholders.
How much profit could the global investment bank deliver in the next few years? Let's take a look at some forecasts from analysts at UBS.
This financial year, FY25
When UBS saw Macquarie's FY25 first-quarter update, the broker said it was weaker than expected but noted that the ASX financial share's management was confident and not panicked by the quarterly update.
UBS suggested Macquarie was positively exposed to the prospect of lower interest rates and rising capital market activity levels. It described Macquarie shares an "eclectic, yet unique investment opportunity among Australian financials".
UBS has predicted that the company's FY25 net profit can grow by more than 10% year over year to $4 billion.
How about next year, FY26?
Hopefully, by the end of the 2026 financial year, we will have seen a few interest rate cuts to help struggling borrowers. Macquarie could be a large beneficiary of that financial environment, assuming that occurs.
UBS expects Macquarie's net profit to jump by another 14% to $4.6 billion in FY26. However, this would still be lower than the profit generated by the company in FY23.
Further growth in FY27
The good times are expected to continue for Macquarie shares into the 2027 financial year, with further revenue growth and profit growth in FY27.
By FY27, revenue is expected to increase to almost $20 billion. The net profit could rise by another 8% to $4.95 billion.
More growth in FY28
It's certainly not guaranteed that a financial business like Macquarie will experience net profit growth year after year after year, considering how exposed it is to the global economy, which does not always go grow.
Nonetheless, UBS currently predicts that Macquarie's net profit in the 2028 financial year will finally surpass FY23. The bottom line is expected to grow by 12.4% to $5.56 billion.
Finally, what's expected in FY29?
The final projection of this series could see Macquarie make a net profit that's more than 50% bigger than the predicted profit for FY25.
Revenue is forecast to rise above $22 billion, while the net profit could go up by 11.4% to $6.2 billion.
If these profit predictions prove accurate, I wouldn't be surprised to see a boost to the Macquarie share price as well in the coming years.
