Macquarie share price higher amid DRP dividend news

Macquarie has announced the share price of stock to be allocated through its dividend reinvestment plan.

The Macquarie Group Ltd (ASX: MQG) share price is 1.18% higher at $218.48 on Tuesday.

Today, Macquarie announced the share price of the stock that will be allocated to investors via the dividend reinvestment plan (DRP).

The DRP price relates to the FY25 final dividend.

Here are the details.

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Macquarie share price rises on Tuesday

Macquarie investors can use the bank's DRP to automatically use their dividends to buy more shares instead of receiving a cash payment.

Each ASX company calculates its DRP share price differently.

In Macquarie's case, it used the arithmetic average of the daily volume-weighted-average price of all Macquarie shares sold on the ASX between 27 May and 6 June.

The DRP share price is $213.66 per share.

This is the equivalent of a 2.2% discount on the Macquarie share price at the time of writing.

The bank will pay the final dividend of $3.90 per share with 35% franking on 2 July.

Macquarie will allocate DRP stocks on the same day.

What did Macquarie report for FY25?

Macquarie released its FY25 report last month.

The ASX 200 bank reported a full-year net profit of $A3,715 million, up 5% on FY24.

The second half of FY25 was stronger than the first. The 2H FY25 net profit was $A2,103 million, up 30% on 1H FY25.

The bank's assets under management were worth $941 billion at the end of FY25, which was broadly in line with the end of FY24.

The return on equity for FY25 was 11.2%, up from 10.8% in FY24.

The bank's net operating income came in at $17,208 million, up 2% on FY24.

International income accounted for 66% of the bank's total income.

Operating expenses were $12,140 million, broadly in line with FY24.

Macquarie Group Managing Director and CEO, Shemara Wikramanayake, said:

Against a backdrop of ongoing market and economic uncertainty, Macquarie's client franchises remained resilient over the past year, delivering new business origination and underlying income growth, contributing to our history of unbroken profitability.

The Macquarie share price rose 3.79% on the day the report was released, indicating that investors were pleased with the numbers.

Meanwhile, Macquarie is in the middle of executing an extended share buyback program.

On 1 November last year, Macquarie announced it was extending its on-market share buyback by 12 months with a budget of $2 billion.

As of 8 May, Macquarie had acquired $A1,013 million worth of ordinary shares at an average price of $189.80 per share.

Ms Wikramanayake said:

Macquarie remains well-positioned to deliver superior performance in the medium term with established, diverse income streams; 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.

Motley Fool contributor Bronwyn Allen 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.

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