mqg -macquarie bank

 MQG

21-7-26

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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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