The Macquarie Group Ltd (ASX: MQG) share price has been a solid performer over the last several years, as the below chart shows. I believe the elements that have driven the Macquarie share price higher could make it a good investment to consider for years to come.
Macquarie is one of the largest ASX financial shares, though it's smaller than the big four banks. I'd much prefer to buy Macquarie over Commonwealth Bank of Australia (ASX: CBA), Westpac Banking Corp (ASX: WBC), ANZ Group Holdings Ltd (ASX: ANZ) and National Australia Bank Ltd (ASX: NAB).
For starters, Macquarie's banking and financial services (BFS) division is growing a lot faster than the majors.
Image source: Getty Images
Strong domestic banking performance
Macquarie is growing rapidly in Australia's banking sector – I think it turn the group of big four ASX bank shares into a big five.
In FY26, the BFS segment grew operating income by 9% to $3.5 billion and its net profit contribution increasing by 17% to $1.6 billion.
The home loan portfolio rose by 28% year-over-year to $181.3 billion – it now represents 7.1% of the Australian market. Meanwhile, deposits rose by 25% year over year to $215.3 billion, representing 6.5% of the Australian market.
Business banking grew by 8% year-over-year to $18.1 billion.
If Macquarie continues delivering loan (and deposit) growth like that in the coming financial years, BFS could become one of the biggest competitors in the space. I think this division will become increasingly important for supporting the Macquarie share price.
International exposure
Less than a third of Macquarie's total income comes from Australia and New Zealand. The business is one of the most successful blue-chips at delivering growth overseas.
The Americas represent 31% of total income, EMEA (Europe, the Middle East and Asia) represents 28% of total income and Asia represents 9% of total income.
Macquarie has done very well at investing in certain areas to help it generate good profit from different markets and different segments.
For example, Macquarie has worked hard to put its commodities and global markets (CGM) division into a good position to make great profits when conditions allow. In FY26, CGM's operating income grew by 30% to $7.8 billion and the net profit contribution improved by 49% to $4.2 billion.
The CGM division saw increased risk management income, primarily driven by increased client hedging activity across global gas and power businesses and global oil. There was also strong client activity globally across foreign currency and interest rate markets.
Valuation of the Macquarie share price
The Macquarie share price is currently valued at under 18x FY27's estimated earnings. It's not the cheapest business on the ASX, but I think it's well-positioned to grow earnings over the long-term. With how strongly the BFS division is growing, I think Macquarie is definitely one to watch.
But, there are a few other ASX shares then could be even better opportunities.
