Friday, 7 November 2025
Macquarie Group — long known for its ability to generate large profits from commodities trading and energy markets — reported softer results for the first half of its financial year, with earnings held back by a slowdown in activity within its trading division. Despite this, the Australian financial group continues to grow its investment-management platform and expand assets under management, positioning itself for a more stable, fee-driven future.
The company posted a net profit of approximately A$1.66 billion for the six months ending in September, a slight increase on the previous year but below market expectations. The weaker result was largely due to a drop in income from its commodities and trading business, which has been a key profit driver in recent years. With calmer energy markets and fewer opportunities for high-margin trading than during the volatility of 2022–2023, earnings from this division fell by roughly 15 percent, now accounting for just over a quarter of total profit.
The market reaction was swift. Macquarie’s shares fell on the morning of the results announcement, reflecting investor surprise at the earnings miss and uncertainty over how long the quieter trading environment may continue.
At the same time, several other parts of the business continued to grow. Macquarie increased its total assets under management to more than SEK 160 billion (around €13.5 billion), supported by new investment mandates across Europe and continued interest from institutional capital. The firm highlighted stronger recurring revenue from its asset-management and banking operations, helping offset weaker trading income.
The company also confirmed that it has taken an impairment charge of more than A$150 million relating to renewable-energy investments, including offshore wind projects in North America. Rising costs and slower permitting timelines in the renewables sector have affected profitability across the industry, and Macquarie’s adjustment reflects wider challenges, not a retreat from the sector.
Looking ahead, Macquarie said it expects more stable conditions over the coming quarters. Inflation continues to moderate and long-term interest rates are showing signs of settling — two factors the bank says are necessary for investment activity to recover. The group has also signalled that it will push harder into its core strength: asset management. Work is already underway to integrate its principal investment activities into the investment-management platform, allowing the firm to seed new funds and build investment vehicles in partnership with external capital providers rather than holding assets directly.
The focus is shifting toward predictable, long-term fees instead of depending heavily on trading swings.
Leadership changes are reinforcing this direction. Macquarie has appointed new senior executives to oversee its corporate finance and investment management operations in Europe, with a goal of strengthening its market position and growing its institutional client base.
Although the latest earnings reflect a quieter period for commodities trading, Macquarie is signalling confidence — both in the evolving market environment and in its ability to generate steady income from investment management. The company describes 2025 as a transitional phase, one where it moves from opportunistic trading toward a more balanced model built on recurring revenues, long-term mandates, and disciplined deployment of capital.
Source: Reiters, FT, The Australian and CIJ.World Analysis Team
