Macquarie Group Reports 30% Profit Surge to A$4.8 Billion; Greg Ward Named Successor CEO

FY26 Profit Growth Driven by All Four Operating Groups

Macquarie Group’s FY26 net profit of A$4.8 billion marks a significant 30% increase over the previous year. Chair Glenn Stevens emphasized that this growth was supported by strong contributions from each of the company’s four operating groups: Banking and Financial Services, Commodities and Global Markets, Macquarie Asset Management, and Advisory Services. This diversified performance highlights Macquarie’s resilient business model amid ongoing complex regulatory and market challenges faced by the global financial services industry.

The return on shareholders' funds improved to 14% in FY26, exceeding the 11% returns seen in the past two years and aligning with the company’s decade-long historical performance. Stevens noted this improvement reflects disciplined capital allocation, focusing resources on activities with attractive risk-adjusted returns. This metric is critical for investors assessing Macquarie’s capital efficiency and long-term value creation, especially given heightened regulatory capital requirements for major financial institutions in Australia and worldwide.

Robust Capital Position and Record Dividend Payout

Macquarie ended FY26 with a strong financial position, maintaining surplus capital at both Group and Banking Group levels. The Banking Group’s common equity tier 1 capital ratio was 12.8% under Australian Prudential Regulation Authority (APRA) standards and 17.5% on a Basel III basis as of 31 March 2026. This solid capital foundation offers flexibility for future capital deployment, including potential shareholder returns or growth investments, underscoring the Board’s confidence in the company’s operational resilience and regulatory compliance.

In light of the strong results, the Board declared a final dividend of A$4.20 per share, bringing the full-year dividend to A$7.00 per share. The Board also approved on-market share issuance to satisfy the Dividend Reinvestment Plan for the final dividend at a 1.5% discount to market price, enabling shareholders to benefit from capital appreciation through reinvestment. Furthermore, the Board decided to conclude the on-market share buyback program, signaling a strategic shift in capital allocation priorities as the company advances. These moves demonstrate management’s confidence in sustainable earnings and shareholder value growth.

Greg Ward Named Incoming Managing Director and CEO

At the Annual General Meeting, Macquarie announced that Greg Ward, currently leading the Banking and Financial Services division, will succeed Shemara Osborn as Managing Director and CEO later in 2026, subject to regulatory approvals. Ward’s appointment follows a thorough internal succession process and acknowledges his extensive experience and proven leadership within the organisation. This transition marks a significant leadership change at one of Australia’s largest financial institutions, with potential impacts on strategic direction and operational focus.

Chair Glenn Stevens paid tribute to Shemara Osborn’s leadership over her eight-year tenure as CEO and her nearly 40-year career at Macquarie. The planned transition allows for an orderly handover, providing clarity to investors, employees, and stakeholders about leadership continuity at the company’s helm.

Board Updates with New Independent Director and Upcoming Departure

Macquarie also announced changes to its Board composition as part of ongoing governance renewal. William Vereker joined as an independent director in February 2026, bringing extensive global financial services experience from executive and director roles. Based in Europe, Vereker adds valuable international insight to the Board’s strategic discussions concerning Macquarie’s global operations.

Jillian Broadbent will retire from the Macquarie Group and Macquarie Bank Boards in December 2026 after eight years of service, during which she chaired the Remuneration Committee and contributed significantly to governance oversight. Susan Lloyd-Hurwitz is standing for re-election to the Macquarie Group Limited Board and, if re-elected, will become Chair of the Remuneration Committee from 1 August 2026. These changes reflect the Board’s commitment to balancing renewal with continuity in governance roles.

KPMG Selected as External Auditor Following Competitive Tender; Formal Inquiries Ongoing

Macquarie confirmed KPMG as the recommended external auditor starting FY2028, pending regulatory and shareholder approval at the 2027 Annual General Meeting. The selection resulted from a competitive tender process initiated in March 2025, involving four highly qualified firms. The process was overseen by management with Board approval, including the Audit Committee chaired by Michelle Hinchliffe. After narrowing to two finalists based on pre-established criteria, KPMG was chosen following final presentations.

Since the November 2025 announcement, KPMG has faced intense external scrutiny. In response, Macquarie’s Board has launched formal inquiries into KPMG’s ongoing capability to perform the audit and the integrity of its involvement in the tender process. The Board engaged external legal advisors Allens to conduct an independent review of the tender process under a scope agreed with Macquarie. Chair Glenn Stevens expressed confidence in the tender’s robustness and the management of potential conflicts of interest, which were fully disclosed by Audit Committee Chair Hinchliffe. The Board will keep shareholders updated as inquiries progress.

Focus on Risk Culture and Regulatory Compliance Improvements

Chair Stevens addressed Macquarie’s approach to risk management and regulatory remediation, noting ongoing progress in addressing past regulatory and compliance issues through platform and data upgrades and active regulatory engagement. The company emphasizes prompt issue reporting, constructive regulator interaction, problem resolution, and organizational learning from past errors. This approach reflects lessons learned and a commitment to meeting high standards expected by markets, clients, and regulators.

Stevens highlighted that a culture of speaking up is deeply embedded at Macquarie, with multiple channels for employees to raise concerns and a strong commitment to responding effectively. This focus on internal risk culture and whistleblower protections aligns with broader industry efforts to identify and escalate compliance risks early, reducing the chance of systemic issues across Macquarie’s operations.

Sustainability Commitment and Leadership in Green Asset Management

Macquarie reaffirmed its strategic role as a financier, adviser, investor, and fiduciary in sustainability, anticipating shareholder benefits. The company remains committed to the Paris Agreement goals, viewing an orderly energy transition as essential to balancing energy availability, affordability, and emissions reduction. Sustainability is integrated into Macquarie’s core strategy rather than treated as a peripheral matter.

Macquarie Asset Management oversees more than A$30 billion in assets dedicated to green energy and climate solutions, investing alongside clients throughout asset lifecycles. The sustainability strategy includes scaling investments in green and climate-resilient assets and collaborating with clients in carbon-intensive sectors to achieve practical decarbonization. At the AGM, the Board recommended shareholders vote against Item 5a, proposing a constitutional amendment, and against Item 5b if presented, stating these would not enhance shareholder feedback mechanisms on company management.

Investor Outlook Post-AGM: Financial Strength and Strategic Clarity

Macquarie’s FY26 results and AGM disclosures provide investors with a detailed update on the company’s financial performance, governance, and strategic direction. The 30% profit increase and improved shareholder returns exceed recent historical levels, while the strong capital position offers flexibility for future initiatives. Greg Ward’s CEO appointment signals leadership continuity and confidence in internal talent to guide the company’s next growth phase.

Investors should monitor ongoing Board inquiries into KPMG’s auditor appointment, including the independent tender process review, which may affect final approval at next year’s AGM. The timing and regulatory approval of Ward’s CEO transition, as well as subsequent Board changes following Jillian Broadbent’s December 2026 departure, will also be important. Continued focus on regulatory remediation and risk culture enhancements underscores Macquarie’s commitment to elevated compliance standards, supporting regulatory relationships and mitigating future risks.