Macquarie Group Shares Jump as Third-Quarter Trading Conditions Improve Across Key Units

Macquarie Group reported improved performance across its major business divisions in the third quarter, reinforcing what the Australian investment bank described as satisfactory trading conditions. The update, released on Tuesday, boosted investor confidence and helped push Macquarie shares higher, with the stock climbing as much as 4% to A$221.32 in early trading. This marked the company’s biggest single-day percentage gain since mid-October and comfortably outpaced the broader benchmark index, which rose just 0.3%.

The Sydney-based financial group, which does not publish full quarterly profit figures, pointed to stronger near-term indicators across several core segments. Macquarie said it expects investment-related income at Macquarie Capital to rise, while net other operating income at Macquarie Asset Management is forecast to be significantly higher. Commodities income at the Commodities and Global Markets (CGM) division is also expected to increase, reflecting favorable market conditions.

Macquarie Asset Management delivered a strong quarter, supported by gains from the sale of its North American and European public investments business. As a result, assets under management rose 3% sequentially to A$736.1 billion as of the end of December, underlining the unit’s continued scale and resilience. Meanwhile, CGM posted a solid performance during the quarter, benefiting from improved trading conditions, while Macquarie Capital saw gains from asset realisations and growing private credit income.

The Banking and Financial Services (BFS) division recorded a slightly higher third-quarter profit, driven by ongoing expansion in Australia’s highly competitive mortgage market. Home loan balances rose 7%, while deposits increased by 6%, allowing Macquarie to continue growing faster than the broader market. However, the bank cautioned that intense competition and the mix of loans being written are putting pressure on profit margins.

Analysts broadly welcomed the update. UBS described the underlying performance as strong, noting that CGM guidance now points to rising income rather than flat results. However, UBS flagged Macquarie’s higher-than-expected 2026 tax rate of around 31% as a moderating factor. Citi analysts said the update was unlikely to materially shift 2026 earnings forecasts, arguing that year-to-date trading appeared broadly in line with expectations and that stronger commodities income was already priced in following recent U.S. gas market volatility.