Macquarie Group shares tumble following earnings release, despite a rise in profit for the first half of fiscal 2026.
Profits for the company reached A$1.655 million in the first half of 2026, increasing 3% year-over-year but declining by 21% in comparison to the previous half-year period.
This increase was mainly driven by its asset management unit rising by 43% on higher performance fees from landmark data centre assets like AirTrunk and Aligned, the U.S. business sold by Macquarie last month for $40 billion.
Despite the year-over-year rise, the bank failed to meet the Visible Alpha consensus estimate of A$1.86 million as profit from its commodities and global markets unit, one of its biggest profit contributors, declined 15%.
Net operating income was also up 6% year-over-year, coming in at A$8.691 million, while operating expenses rose 5% year-over-year to $6.239 million.
“The improved underlying performance across our operating groups in the first half reflects the ongoing benefits of our diverse business mix and our continued investment in opportunities that support long-term growth and deliver positive outcomes for our clients and communities,” Macquarie Group managing director and CEO, Semara Wikramanayake, said.
The company announced an interim ordinary dividend of $2.80 per share, equating to 35 cents franked, surpassing the dividend of $2.60 per share in 1H25.
The board has also approved the bank to buy back as much as $2 billion of shares over the next 12 months, citing its strong capital position.
Despite the positive growth, shares for the company tumbled in early trade due to profits missing expectations.
At the time of writing, Macquarie Group (ASX: MQG) stocks were down 5.87% to A$204.49.
The company shared that it maintains a cautious stance on its future outlook due to a range of short-term factors, including market conditions and potential tax and regulatory changes.
The bank now has an A$160.3 billion mortgage book and a 6.5% market share, up from A$667 billion and a 3.5% market share five years ago.
