Macquarie Beats Fiscal Year Forecasts Amid Energy-Price Volatility — Update

By Stuart Condie

SYDNEY--Macquarie's annual profit topped analysts' expectations after conflict-driven energy-price volatility sent income surging at the Australian financial group's commodity unit.

With hedging activity high across global oil markets, the net profit contribution from Macquarie's commodities and global markets unit surged 49%, to 4.22 billion Australian dollars, equivalent to US$3.04 billion.

The unit, which is the biggest across a group that also offers retail banking and asset management, helped drive a 30% jump in Macquarie's profit for the 12 months through March.

Macquarie, known locally as The Millionaires' Factory, on Friday reported a net profit of A$4.85 billion. The result comfortably beat the average analyst forecast of A$4.35 billion, as calculated by Visible Alpha.

Oil and gas prices have surged since the U.S. and Israel attacked Iran in late February, driving global supply uncertainty due to the effective closure of the Strait of Hormuz shipping channel.

Hour-to-hour news about the latest developments in the conflict has also fueled big intraday swings in energy markets, opening the door for traders to benefit.

Commodities net trading income rose 18%, to A$3.92 billion, helping drive the unit's net profit contribution about 12% higher than analysts had expected. Macquarie said it had also benefited from supply-and-demand imbalances in North American gas and power markets.

"Each of our businesses used its specialist expertise in navigating the current environment, identifying opportunities that support long-term growth," Macquarie Chief Executive Shemara Wikramanayake said.

In asset management, higher performance fees helped drive a 27% rise in the unit's net profit contribution, to $A2.60 billion. Banking and financial services' net profit contribution rose 17%, to A$1.38 billion, reflecting growth in both loans and deposits.

Macquarie Capital delivered a net profit contribution of A$1.49 billion, up 43%, amid higher income from mergers-and-acquisitions fees.

However, credit-impairment charges across the group almost doubled, to A$708 million, with Macquarie citing increased macroeconomic uncertainty.

Group assets under management fell 23%, to A$722.1 billion, after Macquarie sold businesses including its OnStream smart-meter portfolio and the AirFinance leasing service. Excluding divestments, assets under management rose 8%.

Macquarie raised its final dividend to A$4.20 a share, from A$3.90 a year earlier.

Write to Stuart Condie at stuart.condie@wsj.com

(END) Dow Jones Newswires

May 07, 2026 20:18 ET (00:18 GMT)