mqg -macquarie bank

 MQG

21-7-26

https://www.marketindex.com.au/asx/mqg

https://koalagains.com/stocks/ASX/mqg

https://stockanalysis.com/quote/asx/mqg/

https://www.tradingview.com/symbols/ASX-MQG/financials-overview/

https://www.fool.com.au/tickers/asx-mqg/

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Over the last 5 years, ASX:MQG has delivered strong, compounding returns. The company reported a record net profit of A$4.85 billion in FY2026, driven by its Commodities and Global Markets division, operating with an improved Return on Equity (ROE) of 14.0% and consistent debt-to-equity metrics typical of the financial sector. [1, 2, 3, 4]

Financial Highlights (5-Year Overview)

1. Profitability & Earnings

Net Profit: The company reported a full-year net profit after tax of A$4,847 million for FY2026, marking a 30% increase from FY2025.
Earnings Per Share (EPS): Reached A$12.77 in FY2026, a 30% increase year-over-year.
Revenue: Net operating income reached A$19.48 billion in FY2026, a 13% increase compared to the previous year. [, 2]

2. Return on Equity (ROE)

Over the last 5 years (from FY2022 to FY2026), MQG’s ROE has fluctuated based on market conditions, peaking at 18.0% in 2022 and bottoming out at 10.2% in 2024 before rebounding to 14.0% in 2026. [1, 2]

3. Debt & Liabilities

As a diversified financial institution and bank, Macquarie carries large total liabilities relative to equity. Its specific long-term debt levels reflect its complex, capital-intensive operations, with long-term debt sitting in the vicinity of A$339 billion. [1, 2, 3, 4]
The firm consistently adheres to APRA's regulatory capital requirements, maintaining a robust capital surplus to support its global trading and asset-management operations. [1, 2]

Long-Term Shareholder Returns

Alongside consistent profitability, long-term investors have been rewarded through both share price appreciation and regular dividends. The company has a total 5-year price return exceeding 90% and pays a robust annual dividend (e.g., A$7.00 per share declared for FY2026). [1, 2, 3, 4, 5]

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Over the last decade, Macquarie Group Limited (ASX: MQG) has traded at a 10-year median P/E ratio of 15.86x, fluctuating between a cyclical low of roughly 13.2x and recent peaks pushed above 20x due to shifting net profits. As of mid-2026, Macquarie's Trailing Twelve Month (TTM) P/E ratio sits at approximately 19.5x to 20.3x. [1, 2, 3]

Historical P/E Ratio Breakdown

The following table outlines Macquarie Group's annual P/E ratio trends corresponding to its financial year-end reports (ending March 31) and key market events over the last 10 years: [1, 2]

Fiscal Year (Ending March)	Approximate P/E Ratio	Market & Earnings Context
FY 2026	15.2x – 19.7x	Rebound in net profit after tax (NPAT) to A$4.85 billion normalized valuations.
FY 2025	20.0x – 26.7x	Higher multiple driven by compressed earnings and softer green energy asset realizations.
FY 2024	19.3x	Multiples rose following a pullback from peak post-pandemic investment banking activity.
FY 2023	13.2x	Lowest multiple of the 5-year cycle due to rising global interest rates dampening tech valuations.
FY 2022	17.6x	Strong earnings growth offset higher share prices during the tail-end of the pandemic tech/asset boom.
FY 2021	18.1x	Market recovery and structural shifts toward green energy/infrastructure infrastructure assets.
FY 2020	14.5x	Market volatility and broader financial sector compression induced by the early COVID-19 shock.
FY 2019	14.2x	Steady double-digit earnings growth maintained a relatively stable, fair valuation multiple.
FY 2018	15.1x	Consistent growth across corporate, asset management, and commodities divisions.
FY 2017	14.8x	Aligned closely with its long-term historical historical average baseline.

Summary Key Metrics

10-Year High: 26.42x (reached during the 2024–2025 earnings slowdown).
10-Year Low: 13.20x (reached in March 2023).
10-Year Median: 15.86x. [, 2]

Key Drivers of MQG's P/E Multiples

Cyclical Earnings Volatility: Unlike traditional retail banks (e.g., CBA, Westpac), Macquarie behaves more like a global asset manager and investment bank. When asset realization profits fall, its short-term earnings drop, causing the P/E ratio to temporarily spike. [1, 2]
Green Energy & Commodities Tailwinds: Strong performance from its Commodities and Global Markets (CGM) division and green energy assets frequently compresses the P/E ratio via sudden earnings surges. [1]

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ROIC vs WACC 2026

Standard Return on Invested Capital (ROIC) and Weighted Average Cost of Capital (WACC) metrics are not traditionally meaningful or standardly reported for investment banks and financial institutions like Macquarie Group (ASX:MQG). Because banks rely heavily on a revolving pool of debt, client deposits, and varying capital structures rather than traditional manufacturing-style "invested capital," traditional platforms like GuruFocus list standard corporate ROIC for MQG as negative or non-comparable (approx. -1.0%), sitting below a typical WACC of roughly 5.6% to 6.27%. [1, 2, 3, 4, 5]

Financial Metrics Context

Return on Equity (ROE): Instead of ROIC, financial institutions track ROE to measure profitability relative to shareholder funds. Macquarie's recent FY26 ROE reached a multi-year high of 14.0%, with a Return on Tangible Equity (ROTE) of 14.8%. Over the past 10 years, Macquarie's ROE has consistently hovered in the 11% to 18% range. [1]
Cost of Capital (WACC / Cost of Equity): Macquarie's estimated cost of equity sits around 8.24% to 9.05%, and its blended WACC sits around 5.6% to 6.27%. [1, 2, 3]
Value Creation: Because Macquarie's operational returns (ROE around 14%) consistently exceed its cost of equity and cost of capital over economic cycles, the firm historically creates economic value for shareholders, despite traditional industrial ROIC formulas breaking down when applied to banking balance sheets. [1, 2, 3]

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