Macquarie Group is experiencing its most significant intraday decline since April, triggered by half-year results that fell short of analyst expectations. The primary cause is attributed to weaker earnings reported by its commodities division. Near midday, Macquarie shares plummeted 6.7 per cent to $202.56, nearing an intraday low of $202.37. A drop of this magnitude marks the steepest fall since April 4, when the company saw a 9 per cent decline amid broader equity market turmoil following the announcement of tariffs. Macquarie is a diversified financial group providing clients with asset management and finance, banking, advisory and risk and capital solutions across debt, equity and commodities. It acts globally, with a strong foundation in Australia.
Despite the downturn, Macquarie reported a net profit of nearly $1.7 billion, bolstered by performance fees within its asset management unit. However, this figure did not meet analysts’ projections, which had anticipated a first-half profit of $1.86 billion and an interim dividend of $3.09.
UBS analyst John Storey highlighted the discrepancy, noting that the reported result was 10.4 per cent below consensus estimates. Additionally, the earnings per share (EPS) of $4.37 missed expectations by 10.9 per cent.
Storey commented on the market’s reliance on management’s ability to deliver a stronger second-half performance to align with consensus forecasts. He also speculated that the transfer of green investments into the corporate division may indicate a strategic shift, potentially signifying Macquarie scaling back its involvement in these assets or preparing Macquarie Asset Management for a larger strategic move.
