Macquarie Group Ltd (ASX: MQG) shares are edging lower on Friday morning.
In morning trade, the investment bank's shares are down slightly to $241.29.
This follows the release of the company's full-year results before the market open, with broad market weakness appearing to offset the strong result.
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Macquarie shares slip on results day
Macquarie's shares are slipping despite delivering a sizeable lift in profit and a record second-half performance.
According to the release, Macquarie reported net profit after tax attributable to ordinary shareholders of $4.85 billion for FY 2026. This is up 30% on FY 2025.
The second half was particularly strong, with net profit of $3.19 billion. This was a record half-year result and represented a 93% increase on the first half.
Earnings per share rose 30% to $12.77, while return on equity improved to 14%, compared with 11.2% in FY 2025.
Divisional performance
The standout division was Commodities and Global Markets, which delivered a net profit contribution of $4.22 billion. This is up 49% on FY 2025.
This reflected a much higher contribution from Asset Finance following the gain on sale from the OnStream meters platform, as well as stronger commodities income.
Macquarie Asset Management also performed well, with its net profit contribution rising 27% to $2.6 billion. This was driven by higher performance fees.
The Banking and Financial Services division delivered a 17% increase in net profit contribution to $1.61 billion. This was supported by growth in its loan portfolio and deposits.
Finally, the Macquarie Capital division recorded strong growth, with net profit contribution up 43% to $1.49 billion. This reflects higher income from equity investments, M&A fees, brokerage, and the private credit portfolio.
Commenting on the year, Macquarie's managing director and CEO, Shemara Wikramanayake, said:
Each of our businesses used its specialist expertise in navigating the current environment, identifying opportunities that support long-term growth and delivering positive outcomes for our clients and communities.
Macquarie dividend
Income investors may also be pleased with the company's dividend update.
Macquarie declared a final ordinary dividend of $4.20 per share, 35% franked.
This takes the total FY 2026 dividends to $7.00 per share, also 35% franked, representing a full-year payout ratio of 55%.
Outlook
Macquarie said it continues to maintain a cautious stance, with a conservative approach to capital, funding, and liquidity.
However, Wikramanayake believes the group remains well positioned over the medium term due to its diverse income streams, strong balance sheet, and exposure to structural growth opportunities. She 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.
