Macquarie : 2026 full-year result - management discussion and analysis

About this update from Macquarie Group, Ltd.

2026 Management discussion and analysis Macquarie Group Year ended 31 March 2026 Notice to readers The purpose of this report is to provide information supplementary to the Macquarie Group Limited Financial Report (the Financial Report) for the year ended 31 March 2026, including further detail in relation to key elements of Macquarie Group Limited and its subsidiaries' (Macquarie, the Consolidated Entity) financial performance and financial position. The report also outlines the funding and capital profile of the Consolidated Entity. Certain financial information in this report is prepared on a different basis to that contained in the Financial Report, which is prepared in accordance with Australian Accounting Standards. Where financial information presented within this report does not comply with Australian Accounting Standards, a reconciliation to the statutory information is provided. Date of this report This report has been prepared for the year ended 31 March 2026 and is current as at 8 May 2026. Inside cover image Cleco, United States Cleco is a regulated electric utility in Louisiana, serving approximately 298,000 customers. Since 2016, Macquarie Asset Management has supported grid investment to enhance resilience and enable growth, including the company's first major data centre customer agreement, expected to increase system demand by over 10%. Cover image Critical Minerals and Energy, Global Macquarie Capital's Critical Minerals and Energy team is present globally, enabling the connection of capital and opportunity across continents. The team acted as sole financial adviser to VOC Group on the. $A5 billion sale of its 25% interest in the Rhodes Ridge Iron Ore Project to Japanese company Mitsui & Co, representing the highest-ever valuation paid for a pre-construction mining asset globally. Macquarie Group Limited ABN 94 122 169 279 Explanatory notes Comparative information and conventions Where necessary, comparative figures have been restated to conform to changes in current year financial presentation and group structures. References to the prior year are to the 12 months ended 31 March 2025. References to the first half are to the six months ended 30 September 2025. References to the second half are to the six months ended 31 March 2026. In the financial tables throughout this document '*' indicates that the absolute percentage change in the balance was greater than 300% or indicates the result was a gain in one period but a loss in another, or vice versa. Independent Auditor's Report This document should be read in conjunction with the Financial Report for the year ended 31 March 2026, which was subject to independent audit by PricewaterhouseCoopers. PricewaterhouseCoopers' independent auditor's report to the members of Macquarie Group Limited dated 8 May 2026 was unqualified. Any additional financial information in this document which is not included in the Financial Report was not subject to independent audit by PricewaterhouseCoopers. Disclaimer The material in this document has been prepared by Macquarie Group Limited ABN 94 122 169 279 ("MGL") and is general background information about Macquarie's ("MGL and its subsidiaries")' activities current as at the date of this document. This information is given in summary form and does not purport to be complete. The material in this document may include information derived from publicly available sources that have not been independently verified. Information in this document should not be considered as advice or a recommendation to investors or potential investors in relation to holding, purchasing or selling securities or other financial products or instruments and does not take into account your particular investment objectives, financial situation or needs. Before acting on any information you should consider the appropriateness of the information having regard to these matters, any relevant offer document and in particular, you should seek independent financial advice. No representation or warranty is made as to the accuracy, completeness or reliability of the information. All securities and financial product or instrument transactions involve risks, which include (among others) the risk of adverse or unanticipated market, financial or political developments and, in international transactions, currency risk. This document may contain forward looking statements - that is, statements related to future, not past, events or other matters - including, without limitation, statements regarding our intent, belief or current expectations with respect to Macquarie's businesses and operations, market conditions, results of operation and financial condition, capital adequacy, provisions for impairments and risk management practices. Readers are cautioned not to place undue reliance on these forward looking statements. Macquarie does not undertake any obligation to publicly release the result of any revisions to these forward looking statements or to otherwise update any forward looking statements, whether as a result of new information, future events or otherwise, after the date of this document. Actual results may vary in a materially positive or negative manner. Forward looking statements and hypothetical examples are subject to uncertainty and contingencies outside Macquarie's control. Past performance is not a reliable indication of future performance. Other than Macquarie Bank Limited ABN 46 008 583 542 ("MBL"), any Macquarie group entity noted in this document is not an authorised deposit-taking institution for the purposes of the Banking Act 1959 (Cth). That entity's obligations do not represent deposits or other liabilities of MBL and MBL does not guarantee or otherwise provide assurance in respect of the obligations of that entity. Any investments are subject to investment risk including possible delays in repayment and loss of income and principal invested. Contents 01 02 03 Result Overview Segment Analysis Funding and Liquidity 1.1 Executive Summary 3 2.1 Basis of Preparation 17 3.1 Liquidity Risk Governance and Management Framework 39 2.2 MAM 21 3.2 Management of Liquidity Risk 41 2.3 BFS 25 3.3 Funded Balance Sheet 43 2.4 CGM 27 3.4 Funding Profile for Macquarie 44 2.5 Macquarie Capital 30 3.5 Funding Profile for the Bank Group 49 2.6 Corporate 32 3.6 Funding Profile for the Non-Bank Group 52 2.7 International Income 34 3.7 Explanatory Notes Concerning Funding Sources and Funded Assets 54 2.8 Headcount 35 04 05 06 Capital Ten Year History Glossary 4.1 Overview 57 5.1 Ten Year History 67 6.1 Glossary 71 4.2 Bank Group Capital 59 4.3 Non-Bank Group Capital 62 ‌01 Results Overview Home loans, Australia Macquarie Bank is helping Australians take their next step in the property market with confidence. With some of the fastest turnaround times in the industry, customers receive an answer on their home loan application quickly. 1 Macquarie Group Limited 2026 Management Discussion and Analysis 2 ‌Macquarie is a global financial services group with offices in 30 markets. Macquarie Group Limited (MGL, the Company) is listed in Australia and is regulated by the Australian Prudential Regulation Authority (APRA), the Australian banking regulator, as a Non-Operating Holding Company (NOHC) of Macquarie Bank Limited (MBL), an authorised deposit-taking institution (ADI). Macquarie's activities are also subject to supervision by various other regulatory agencies around the world. Founded in 1969, Macquarie now employs 19,124 1 people globally, has total assets of $A540.1 billion and total equity of $A36.9 billion as at 31 March 2026. Macquarie's breadth of expertise covers asset management, retail and business banking, wealth management, as well as advisory, risk and capital solutions across debt, equity, financial markets and commodities. The diversity of our operations, combined with a strong capital position and robust risk management framework, has contributed to Macquarie's 57-year record of unbroken profitability. Macquarie works with government, institutional, corporate and retail clients and counterparties around the world, providing a diversified range of products and services. We have established leading market positions as a global specialist in a wide range of sectors, including renewables, infrastructure, resources, technology and services, commodities and energy. Alignment of interests is a longstanding feature of Macquarie's client-focused business, demonstrated by our willingness to both invest alongside clients and closely align the interests of our shareholders and staff. 1 This figure includes staff employed in certain operationally segregated subsidiaries (OSS). FY2026 net profit 1 $A4,847m 30% on prior year 1 FY2026 net operating income $A19,477m 13% on prior year FY2026 operating expenses $A12,748m 5% on prior year FY2026 return on equity 14.0% from 11.2% in the prior year FY2026 return on tangible equity 14.8% from 12.7% in the prior year Diversity of income 2 ~48% ~28% ~24% Markets-facing | Income Annuity-style | Income 1 Net profit is profit after tax attributable to ordinary equity holders of Macquarie Group Limited. 2 Reference to Macquarie's established, diverse income streams is based on FY2026 net operating income. FY2026 net profit contribution 1 by Operating Group Summary of the Operating Groups' performance for the year ended 31 March 2026. Non-Banking Group Macquarie Asset Management (MAM) $A2,602m 27% on prior year due to increased performance fees from Private Markets-managed funds, managed accounts and co-investors increased net investment income primarily driven by the gain on sale of the North American and European Public Investments business ("divested business") in the second half, net of associated transaction and separation costs, partially offset by the gain on sale of Macquarie Rotorcraft in the prior year. Partially offset by: lower base fees and other fee and commission income, partially offset by lower total operating expenses following the sale of the divested business in the second half. Macquarie Capital $A1,491m 43% on prior year due to higher net investment income, primarily due to gains on the equity investment portfolio driven by exits in the infrastructure and technology sectors higher net interest income primarily from the private credit portfolio, which benefitted from $A2.5 billion 2 of growth in average drawn loan assets higher fee and commission income driven mainly by higher mergers and acquisitions fee income, particularly in the Americas and ANZ, and higher brokerage fee income due to increased market activity, particularly in Asia. Partially offset by: higher impairment charges driven by a small number of underperforming assets higher share of net losses from associates and joint ventures which reflected changes in the composition and performance of the investment portfolio. Banking Group Banking and Financial Services (BFS) $A1,610m 17% on prior year due to higher net interest income primarily driven by growth in the average loan and deposit portfolios, partially offset by lower margins reflecting changes in portfolio mix and lending and deposit competition higher fee and commission income driven by growth in average funds on platform, the loan portfolio and BFS deposits. Partially offset by: higher operating expenses reflecting increased technology expenses to support business growth and scalable operations. Commodities and Global Markets (CGM) 3 $A4,221m 49% on prior year due to increased net investment income primarily due to the gain on sale from the divestment of the OnStream meters platform and other Asset Finance investment activity in the technology and energy sectors increased risk management income primarily driven by increased client hedging activity across Global Gas and Power businesses and Global Oil increased inventory management and trading income driven by supply and demand imbalances in North American Gas and Power and oil trading, partially offset by timing of income recognition on gas storage and transport contracts. Partially offset by: higher operating expenses reflecting increased investment in the CGM platform, including adjacent business opportunities, significant transaction-related costs and higher brokerage expenses higher credit and other impairment charges driven by portfolio growth, uncertainty in the macroeconomic environment and specific impairments for a small number of counterparties. Corporate Net loss of $A5,077m 42% on prior year due to higher employment expenses driven by higher performance-related profit share higher income tax expense driven by the performance of the group, as well as the geographical composition and nature of earnings lower net investment income primarily driven by the non-recurrence of asset realisations in Green Investments higher other charges driven by impairments of Green Investments and the non-recurrence of a gain on the sale of centrally held assets, partially offset by lower net expenditure on Green Investment platforms. 1 Net profit contribution is management accounting profit before unallocated corporate costs, profit share and income tax. 2 Average volume calculation is based on balances converted at spot foreign exchange rates as at 31 March 2026. 3 Certain activities in the Financial Markets and Commodity Markets and Finance businesses are undertaken from within the Non-Banking Group. Results Overview Segment Analysis Funding and Liquidity Capital Ten Year History Glossary Profit attributable to the ordinary equity holders $A4,847m 30% on prior year HALF YEAR TO FULL YEAR TO Mar 26 Sep 25 Movement Mar 26 Mar 25 Movement $Am $Am % $Am $Am % Financial performance summary Net interest income Net trading income 2,085 3,563 2,066 2,445 1 46 4,151 6,008 3,507 5,370 18 12 Net interest and trading income 5,648 4,511 25 10,159 8,877 14 Fee and commission income 3,315 3,901 (15) 7,216 6,790 6 Net investment income 2,440 336 * 2,776 1,338 107 Share of net profits/(losses) from associates and joint ventures 101 (50) * 51 167 (69) Net credit impairment charges (461) (17) * (478) (266) 80 Net other impairment charges (218) (12) * (230) (95) 142 Net other operating (charges)/income Net operating lease income 317 219 45 536 561 (4) Net other (charges)/income (356) (197) 81 (553) (164) 237 Net other operating (charges)/income (39) 22 * (17) 397 * Net operating income 10,786 8,691 24 19,477 17,208 13 Compensation expenses (4,052) (3,734) 9 (7,786) (7,255) 7 Other employment expenses (209) (222) (6) (431) (405) 6 Employment expenses (4,261) (3,956) 8 (8,217) (7,660) 7 Brokerage, commission and fee expenses (595) (628) (5) (1,223) (1,206) 1 Non-salary technology expenses (633) (634) (<1) (1,267) (1,200) 6 Other operating expenses (1,020) (1,021) (<1) (2,041) (2,074) (2) Total operating expenses (6,509) (6,239) 4 (12,748) (12,140) 5 Operating profit before income tax 4,277 2,452 74 6,729 5,068 33 Income tax expense (1,089) (771) 41 (1,860) (1,326) 40 Profit after income tax 3,188 1,681 90 4,869 3,742 30 Loss/(profit) attributable to non-controlling interests 4 (26) * (22) (27) (19) Profit attributable to ordinary equity holders of Macquarie Group Limited 3,192 1,655 93 4,847 3,715 30 Key metrics Expense to income ratio (%) 60.3 71.8 65.5 70.5 Compensation ratio (%) 37.6 43.0 40.0 42.2 Effective tax rate (%) 25.5 31.4 27.6 26.2 Basic earnings per share (cents per share) 840.7 436.7 1,277.0 979.4 Diluted earnings per share (cents per share) 822.8 435.0 1,266.9 975.5 Dividend per ordinary share (cents per share) 420.0 280.0 700.0 650.0 Ordinary dividend payout ratio (%) 50.1 64.4 55.0 66.7 Annualised return on equity (%) 18.3 9.6 14.0 11.2 Annualised return on tangible equity (%) 19.4 10.2 14.8 12.7 Net operating income Net operating income of $A19,477 million for the year ended 31 March 2026 increased 13% from $A17,208 million in the prior year. The increase was primarily driven by higher investment income, net interest and trading income and fee and commission income. This was partially offset by lower net other operating income and higher credit and other impairment charges. Net interest and trading income Fee and commission income FULL YEAR TO 31 Mar 26 31 Mar 25 $Am $Am 14% on prior year FULL YEAR TO 31 Mar 26 31 Mar 25 $Am $Am 6% on prior year 10,159 8,877 7,216 6,790 Largely driven by: Largely driven by: higher risk management income primarily due to increased client hedging activity across Global Gas and Power businesses and Global Oil, in CGM higher inventory management and trading income driven by supply and demand imbalances in North American Gas and Power and oil trading, partially offset by timing of income recognition on gas storage and transport contracts, in CGM higher net interest income due to growth in the average loan and deposit portfolios, in BFS higher interest income driven mainly by InEvo Re and lower funding costs following the sale of Macquarie Rotorcraft, in MAM higher net interest income due to growth in the average private credit portfolio in Macquarie Capital. Partially offset by: lower margins reflecting changes in portfolio mix and lending and deposit competition, in BFS. higher performance fees from Private Markets-managed funds as well as funds managed on behalf of wealth investors, managed accounts and co-investors, in MAM higher advisory fee income, particularly in the Americas and ANZ, and higher brokerage fee income mainly due to increased market activity, particularly in Asia, in Macquarie Capital higher structuring fees in commodities products and increased client activity in Futures, in CGM. Partially offset by: lower base fees following the sale of the divested business in MAM. 69% Net investment income Share of net profits/(losses) from associates and joint ventures 31 Mar 26 31 Mar 25 31 Mar 26 31 Mar 25 FULL YEAR TO FULL YEAR TO $Am $Am 2,776 1,338 substantially on prior year $Am $Am 51 167 on prior year Largely driven by: Largely driven by: the gain on sale from the divestment of the OnStream meters platform, in CGM higher gains on the equity investment portfolio, primarily driven by exits in the infrastructure and technology sectors, in Macquarie Capital the net gain on sale of the divested business in MAM. lower equity accounted net income from the sale of assets by the underlying funds in MAM higher net losses primarily driven by changes in the composition and performance of the investment portfolio, in Macquarie Capital. Partially offset by: Partially offset by: • revaluation gains in MAM. the gain on sale of Macquarie Rotorcraft in the prior year in MAM the non-recurrence of asset realisations in Green Investments in Corporate. 96% Credit and other impairment charges Net other operating (charges)/income 31 Mar 26 31 Mar 25 31 Mar 26 31 Mar 25 FULL YEAR TO FULL YEAR TO $Am $Am on prior year $Am $Am substantially (708) (361) (17) 397 Largely driven by: Largely driven by: on prior year higher credit impairment charges primarily due to portfolio growth, uncertainty in the macroeconomic environment and specific impairments for a small number of counterparties higher other impairment charges driven by a small number of underperforming assets in Macquarie Capital. higher impairments of Green Investments in Corporate the non-recurrence of gains on sale of centrally held assets in Corporate the non-recurrence of operating lease income following the sale of Macquarie Rotorcraft and the remeasurement of reinsurance and related obligations in InEvo Re, in MAM. Partially offset by: lower net expenditure on Green Investment platforms in Corporate increased contribution from the meters sector in CGM. Results Overview Segment Analysis Funding and Liquidity Capital Ten Year History Glossary Operating expenses Total operating expenses of $A12,748 million for the year ended 31 March 2026 increased 5% from $A12,140 million in the prior year, primarily driven by higher employment expenses. Employment expenses Brokerage, commission and fee expenses FULL YEAR TO 31 Mar 26 31 Mar 25 7% FULL YEAR TO 31 Mar 26 31 Mar 25 1% $Am $Am $Am $Am 8,217 7,660 on prior year 1,223 1,206 on prior year Largely driven by: Largely driven by: higher performance-related profit share wage inflation. increased hedging and trading-related expenses across equities, foreign exchange, interest rates and credit, in CGM. Non-salary technology expenses Other operating expenses FULL YEAR TO 31 Mar 26 31 Mar 25 6% FULL YEAR TO 31 Mar 26 31 Mar 25 2% $Am $Am $Am $Am 1,267 1,200 on prior year 2,041 2,074 on prior year Largely driven by: Largely driven by: increased investment in technology initiatives, with a focus on data and digitalisation, to support business growth and scalable operations. Income tax expense and Effective tax rate Income tax expense FULL YEAR TO lower expenses due to the sale of the divested business in MAM. Partially offset by: higher expenses due to increased investment in the CGM platform, including adjacent business opportunities and significant transaction-related costs, in CGM. 31 Mar 26 31 Mar 25 $Am $Am 1,860 1,326 40% on prior year Effective tax rate FULL YEAR TO 31 Mar 26 31 Mar 25 % % 27.6 26.2 1.4% on prior year This movement was largely driven by the performance of the group, as well as the geographical composition and nature of earnings. Statement of financial position AS AT MOVEMENT Mar 26 $Ab Mar 25 $Ab Mar 25 % Assets Cash and bank balances 23.4 26.4 (11) Cash collateralised lending and reverse repurchase agreements 83.0 66.6 25 Trading assets 42.8 35.0 22 Margin money and settlement assets 28.5 26.6 7 Derivative assets 43.5 24.3 79 Financial investments 31.0 21.5 44 Held for sale assets 5.4 6.6 (18) Other assets 14.3 14.2 1 Loan assets 253.5 205.6 23 Interests in associates and joint ventures 6.3 7.7 (18) Property, plant and equipment and right-of-use assets 4.2 6.9 (39) Intangible assets 2.2 1.7 29 Deferred tax assets 2.0 2.1 (5) Total assets 540.1 445.2 21 Liabilities Cash collateralised borrowing and repurchase agreements 7.4 4.9 51 Trading liabilities 12.5 5.8 116 Margin money and settlement liabilities 35.9 28.8 25 Derivative liabilities 37.7 23.4 61 Deposits 221.5 177.7 25 Held for sale liabilities 1.4 1.9 (26) Other liabilities 18.5 15.0 23 Issued debt securities and other borrowings 150.0 135.2 11 Deferred tax liabilities 0.4 0.3 33 Total liabilities excluding loan capital 485.3 393.0 23 Loan capital 17.9 16.4 9 Total liabilities 503.2 409.4 23 Net assets 36.9 35.8 3 Equity Contributed equity Reserves Retained earnings 11.2 3.1 21.8 11.1 1 4.8 (35) 19.5 12 Total capital and reserves attributable to ordinary equity holders of Macquarie Group Limited 36.1 35.4 2 Non-controlling interests 0.8 0.4 100 Total equity 36.9 35.8 3 Results Overview Segment Analysis Funding and Liquidity Capital Ten Year History Glossary Statement of financial position The Consolidated Entity's Statement of financial position was impacted during the year ended 31 March 2026 by changes resulting from a combination of business activities, Group Treasury management initiatives and macroeconomic factors. Assets Liabilities Total assets of $A540.1 billion as at 31 March 2026 increased 21% from $A445.2 billion as at 31 March 2025. The principal drivers for the increase were as follows: loan assets of $A253.5 billion as at 31 March 2026 increased 23% from $A205.6 billion as at 31 March 2025, driven by volume growth in BFS home loans and corporate, commercial and other lending, in CGM derivative assets of $A43.5 billion as at 31 March 2026 increased 79% from $A24.3 billion as at 31 March 2025, driven by movements in gas and power commodity prices due to market volatility. After taking into account related financial instruments, cash and other collateral, the residual derivative exposure was $A12.4 billion (31 March 2025: $A7.2 billion). The majority of the residual derivative exposure is short-term in nature and managed within the Consolidated Entity's market and credit risk frameworks, with a substantial portion of the exposure with investment grade counterparties cash collateralised lending and reverse repurchase agreements of $A83.0 billion as at 31 March 2026 increased 25% from $A66.6 billion as at 31 March 2025, driven by an increase in holdings of reverse repurchase agreements as part of Group Treasury's liquid asset portfolio management and higher trading activity, in CGM trading assets of $A42.8 billion as at 31 March 2026 increased 22% from $A35.0 billion as at 31 March 2025, driven by an increase in holdings of listed equity securities, in CGM financial investments of $A31.0 billion as at 31 March 2026 increased 44% from $A21.5 billion as at 31 March 2025, driven by growth in the portfolios of high quality liquid assets held across Group Treasury's liquidity portfolio and in MAM. Total liabilities of $A503.2 billion as at 31 March 2026 increased 23% from $A409.4 billion as at 31 March 2025. The principal drivers for the increase were as follows: deposits of $A221.5 billion as at 31 March 2026 increased 25% from $A177.7 billion as at 31 March 2025, driven by volume growth in deposits, in BFS derivative liabilities of $A37.7 billion as at 31 March 2026 increased 61% from $A23.4 billion as at 31 March 2025, commensurate with the movement in derivative assets issued debt securities and other borrowings of $A150.0 billion as at 31 March 2026 increased 11% from $A135.2 billion as at 31 March 2025, driven by the net issuance of commercial paper, certificates of deposit and borrowings, in Group Treasury margin money and settlement liabilities of $A35.9 billion as at 31 March 2026 increased 25% from $A28.8 billion as at 31 March 2025, driven by an increase in margin placed by financial institutions and broker settlement balances, in CGM trading liabilities of $A12.5 billion as at 31 March 2026 increased 116% from $A5.8 billion as at 31 March 2025, driven by an increase in short positions on listed equity securities, in CGM. Equity Total equity of $A36.9 billion as at 31 March 2026 increased 3% from $A35.8 billion as at 31 March 2025. The principal drivers for the increase were as follows: $A4.8 billion of earnings generated during the current period. Partially offset by: $A2.5 billion in dividend payments $A1.7 billion decrease in the foreign currency translation reserve, largely driven by the appreciation of the Australian Dollar against the United States Dollar. Loan assets Loan assets by Operating Group per the funded balance sheet are shown in detail below: BFS AS AT MOVEMENT Mar 26 Mar 25 Mar 25 Notes $Ab $Ab % Home loans 1 183.0 143.0 28 Business banking 2 18.1 16.6 9 Car loans 3 0.1 2.6 (96) Other 4 0.3 0.2 50 Total BFS 201.5 162.4 24 CGM Asset finance 5 5.0 4.3 16 Resources and commodities 6 4.8 3.7 30 Foreign exchange, interest rate and credit 7 12.8 10.5 22 Other 8 3.4 0.4 * Total CGM 26.0 18.9 38 MAM Other 9 1.3 0.2 * Total MAM 1.3 0.2 * Macquarie Capital Corporate and other lending 1 10 24.7 24.1 2 Total Macquarie Capital 24.7 24.1 2 Total 2 253.5 205.6 23 1 Includes loans secured by mortgages over residential property. 2 Total loan assets per funded balance sheet includes self-securitised assets. Results Overview Segment Analysis Funding and Liquidity Capital Ten Year History Glossary Explanatory notes concerning asset security of funded loan asset portfolio Home loans Loans secured by mortgages over residential property. Business banking Loan portfolio secured largely by working capital, business cash flows and real property. Car loans Secured by motor vehicles. BFS Other Includes credit cards. Asset finance Predominantly secured by underlying financed assets. Resources and commodities Diversified loan portfolio primarily to the resources sector that are secured by the underlying assets with associated price hedging to mitigate risk. Foreign exchange, interest rate and credit Diversified lending predominantly consisting of loans which are secured by other loan collateral, assets including rights and receivables and warehoused security from mortgages and auto loans. CGM Other Predominantly short-term transaction funding. MAM Other Secured by underlying financial assets. Corporate and other lending Diversified corporate and real estate lending portfolio, predominantly consisting of loans which are senior, secured, covenanted and with a hold to maturity horizon. Equity investments Equity investments include: interests in associates, joint ventures and other assets classified as held for sale; subsidiaries and certain other assets held for investment purposes; and financial investments excluding trading equities. The classification is driven by a combination of the level of influence Macquarie has over the investment and Macquarie's business intention with respect to the holding of the investment. For the purpose of analysis, equity investments have been re-grouped into the following categories: investments in Macquarie-managed funds; and other investments. Equity investments reconciliation AS AT MOVEMENT Mar 26 Mar 25 Mar 25 $Ab $Ab % Equity investments Statement of financial position Equity investments at fair value Interest in associates and joint ventures 1 2.2 8.9 1.8 22 9.1 (2) Total equity investments per statement of financial position 11.1 10.9 2 Adjustment for funded balance sheet Non-controlling interests 2 (0.3) (0.2) 50 Total funded equity investments 10.8 10.7 1 Adjustment for equity investment analysis Subsidiaries and certain other assets held for investment purposes 3 2.2 2.7 (19) Total adjusted equity investments 4 13.0 13.4 (3) 1 Includes total interests in associates and joint ventures as per Note 24 of the Annual Report and interests in associates and joint ventures classified as held for sale as per Note 18 of the Annual Report. 2 These represent the portion of ownership in equity investments not attributable to Macquarie. As this is not a position that Macquarie is required to fund, it is netted against the consolidated assets and liabilities in preparing the funded balance sheet. 3 Subsidiaries and certain other assets held for investment purposes are consolidated entities that are held with the ultimate intention to sell as part of Macquarie's investment activities. 4 The adjusted value represents the total net exposure for Macquarie. Equity investments by category AS AT MOVEMENT Category Mar 26 $Ab Mar 25 $Ab Mar 25 % MAM Macquarie Asset Management Private Markets-managed funds 3.0 2.6 15 Transport, industrial, real estate, infrastructure and technology 2.0 1.9 5 Investments acquired to seed new Private Markets-managed products and mandates 0.7 0.9 (22) Total MAM 5.7 5.4 6 Macquarie Capital Growth & Technology and Venture Capital Infrastructure & Energy Capital Principal Finance 2.1 1.7 1.6 1.8 17 2.1 (19) 1.9 (16) Total Macquarie Capital Green Energy Corporate and Other 1 5.4 0.7 1.2 5.8 (7) 1.3 (46) 0.9 33 Total Other 1.9 2.2 (14) Total equity investments 13.0 13.4 (3) 1 Other includes BFS and CGM. 02 Segment Analysis Port of Newcastle, Australia The Port of Newcastle is the largest deepwater port on Australia's east coast. Macquarie Asset Management is supporting the port's diversification strategy beyond its traditional coal export base, including the development of a 220-hectare clean energy precinct, container terminal and expansion of bulk cargo terminal operations. 15 ‌Macquarie Group Limited 2026 Management Discussion and Analysis 16 ‌Operating Segments AASB 8 Operating Segments requires the 'management approach' to disclosing information about the Consolidated Entity's reportable segments. The financial information is reported on the same basis as used internally by Senior Management for evaluating Operating Segment performance and for deciding how to allocate resources to Operating Segments. Such information may be produced using different measures to that used in preparing the statutory income statement. For internal reporting, performance measurement and risk management purposes, the Consolidated Entity is divided into Operating Groups and a Corporate segment (reportable segments). Internally, Macquarie uses net profit contribution as a measure of performance of its reportable segments. The financial information disclosed relates to the Consolidated Entity's ordinary activities. These segments have been set up based on the different core products and services offered. The Operating Groups comprise: MAM which is a leading global asset manager that provides a diverse range of investment solutions including real assets, real estate, credit and insurance, secondaries and systematic investments BFS which provides a diverse range of personal banking, wealth management and business banking products and services to retail clients, advisers, brokers and business clients CGM which is a global business offering capital and financing, risk management, market access, physical execution and logistics solutions to its diverse client base across Commodities, Financial Markets and Asset Finance Macquarie Capital which has global capability in advisory and capital raising services, providing clients with specialist expertise and flexible capital solutions across a range of sectors. It also has global capability in specialist investing across private credit, private equity, real estate, growth equity, venture capital, and infrastructure and energy. Macquarie Capital's Equities brokerage business provides clients with access to equity research, sales, execution capabilities and corporate access with a focus on Asia-Pacific. The Corporate segment comprises head office and Central Service Groups, and holds certain legacy and strategic investments, assets and businesses that are not allocated to any of the Operating Groups. Items of income and expense within the Corporate segment include the net result of managing Macquarie's liquidity and funding requirements, earnings on capital and the residual accounting volatility relating to economically hedged positions where hedge accounting is applied, as well as accounting volatility for other economically hedged positions where hedge accounting is not applied. Other items of income and expense within the Corporate segment include earnings from certain legacy investments transferred to Corporate for strategic management, changes in central overlays to credit and other impairments or valuation of assets, provisions for uncertain or legacy matters, unallocated head office and Central Service Groups costs. The Corporate segment also includes performance-related profit share and share-based payments expenses and income tax expense. On 1 September 2025, the Green Investments assets retained on balance sheet were transferred to a Macquarie Group portfolio, centrally managed in Corporate. These transfers were undertaken to better align the Operating Groups with their long-term strategy. In accordance with AASB 8 Operating Segments, comparative information has been restated to reflect these changes. Below is a selection of key policies applied in determining the Operating Segment results. Internal funding arrangements Group Treasury has the responsibility for managing wholesale funding for the Consolidated Entity, and Operating Groups primarily obtain their required funding from Group Treasury. The Operating Groups are assumed to be fully debt funded for the purposes of internal funding charges. The interest rates charged by Group Treasury are determined by the currency and term of the funding. With the exception of deposit funding, Operating Groups may only source funding directly from external sources where the funding is secured by the Operating Group's assets or where they have specific capabilities that support Group Treasury in raising unsecured funding. In such cases, Operating Groups generally bear the funding costs directly and Group Treasury may levy additional charges, where appropriate. Transactions between Operating Segments Operating Segments that enter into arrangements with other Operating Segments must do so on commercial terms or as agreed by the Consolidated Entity's Chief Executive Officer or Chief Financial Officer. Internal transactions are recognised in each of the relevant categories of income and expense and eliminated on consolidation as appropriate. Accounting for economic interest rate risk hedging derivatives and presentation of interest and trading income With respect to businesses that predominantly earn income from lending activities, derivatives that hedge interest rate risk are measured at fair value through profit or loss (FVTPL). Changes in the fair value are presented in net trading income and give rise to income statement volatility unless designated in hedge accounting relationship s. If designated in fair value hedge accounting relationships, t he carrying value of the hedged items are adjusted for changes in the fair value attributable to the hedged risks to reduce volatility in the income statement. If designated in cash flow hedge accounting relationships, the effective portion of the derivatives' fair value gains or losses are deferred in the cash flow hedge reserve as part of Other Comprehensive Income (OCI), and subsequently recognised in the income statement at the time at which the hedged items affect the income statement for the hedged risks. For segment reporting, derivatives are accounted for on an accrual basis in the results of the Operating Groups to the extent that the Corporate segment manages the derivative volatility, either through the application of hedge accounting or where the derivative volatility may offset the volatility of other positions managed within the Corporate segment. Net interest income and net trading income are presented and discussed below in aggregate for each Operating Group, which management believes presents a more consistent overview of business performance and allows for a better analysis of the underlying activities and drivers. Central Service Groups The Central Service Groups provide a range of functions supporting MGL's Operating Groups, ensuring that they have the appropriate workplace support and systems to operate effectively and the necessary resources to meet their regulatory, compliance, financial, legal and risk management requirements. Central Service Groups recover their costs from Operating Groups generally on either a time and effort allocation basis or a fee for service basis. Central Service Groups include the Corporate Operations Group (COG), Financial Management, People and Engagement (FPE), Risk Management Group (RMG), Legal and Governance Group (LGG) and Central Executive. Performance-related profit share and share-based payments expense Performance-related profit share and share-based payments expenses relating to the Macquarie Group Employee Retained Equity Plan (MEREP) are recognised in the Corporate segment and are not allocated to Operating Groups. Income tax The income tax expense and benefit is recognised in the Corporate segment and is not allocated to the Operating Groups. However, to recognise an Operating Group's contribution to permanent income tax differences, the internal management revenue/(charge) category is used. In circumstances where income tax returns have not yet been lodged, the timing of recognition of any benefit or impact is subject to Senior Management discretion. This internal management revenue/(charge) category, which is primarily used for permanent income tax differences generated by the Operating Groups, is offset by an equal and opposite amount recognised in the Corporate segment such that they are eliminated on consolidation. Presentation of segment income statements The income statements on the following pages for each of the reported segments are in some cases summarised by grouping non-material balances together. Where appropriate, all material or key balances have been reported separately to provide users with information relevant to the understanding of the Consolidated Entity's financial performance. The financial information disclosed relates to the Consolidated Entity's ordinary activities. Transactions under common control On 29 August 2025, the Company acquired 100% of the equity interest in MIFL and its subsidiaries from MBL for a total cash consideration of $A3,023 million. In September 2025, the Consolidated Entity made the payment of $A321 million for 100% of the net capital invested in the Shield Master Fund (Shield) by those who invested through Macquarie. This comprised the acquisition of financial investments in Shield at fair value ($A224 million) and a goodwill payment ($A97 million). Continued MAM $Am BFS $Am Full year ended 31 March 2026 Net interest and trading (expense)/income (289) 2,899 Fee and commission income/(expense) 4,320 668 Net investment income/(losses) 492 1 Share of net profits/(losses) from associates and joint ventures 183 - Other operating income and charges Net credit and other impairment (charges)/reversals Net other operating income and charges Internal management revenue/(charge) (26) (36) (27) - 79 1 Net operating income 4,732 3,533 Total operating expenses (2,122) (1,923) Operating profit/(loss) before income tax 2,610 1,610 Income tax expense - - (Profit)/loss attributable to non-controlling interests (8) - Net profit/(loss) contribution 2,602 1,610 Full year ended 31 March 2025 Net interest and trading (expense)/income (514) 2,717 Fee and commission income/(expense) 4,212 611 Net investment income/(losses) 399 (35) Share of net profits/(losses) from associates and joint ventures 245 (1) Other operating income and charges Net credit and other impairment charges (6) (45) Net other operating income and charges 261 (7) Internal management (charge)/revenue (7) (3) Net operating income 4,590 3,237 Total operating expenses (2,515) (1,857) Operating profit/(loss) before income tax 2,075 1,380 Income tax expense - - (Profit)/loss attributable to non-controlling interests (26) - Net profit/(loss) contribution 2,049 1,380 Results Overview Segment Analysis Funding and Liquidity Capital Ten Year History Glossary CGM $Am Macquarie Capital $Am Corporate $Am Total $Am 5,670 923 956 10,159 659 1,602 (33) 7,216 1,229 1,084 (30) 2,776 60 (218) 26 51 (342) (309) 5 (708) 539 (27) (502) (17) (13) 3 (70) - 7,802 3,058 352 19,477 (3,595) (1,532) (3,576) (12,748) 4,207 1,526 (3,224) 6,729 - - (1,860) (1,860) 14 (35) 7 (22) 4,221 1,491 (5,077) 4,847 4,890 812 972 8,877 529 1,453 (15) 6,790 141 612 221 1,338 40 (129) 12 167 (97) (115) (98) (361) 504 (46) (315) 397 11 51 (52) - 6,018 2,638 725 17,208 (3,190) (1,584) (2,994) (12,140) 2,828 1,054 (2,269) 5,068 - - (1,326) (1,326) 1 (11) 9 (27) 2,829 1,043 (3,586) 3,715 ‌HALF YEAR TO FULL YEAR TO Mar 26 Sep 25 Movement Mar 26 Mar 25 Movement $Am $Am % $Am $Am % Fee and commission income Base fees 1,086 1,465 (26) 2,551 2,925 (13) Private Markets 704 749 (6) 1,453 1,460 (<1) Public Investments 382 716 (47) 1,098 1,465 (25) Performance fees 625 756 (17) 1,381 837 65 Other fee and commission income 194 194 - 388 450 (14) Total fee and commission income 1,905 2,415 (21) 4,320 4,212 3 Net investment income 485 7 * 492 399 23 Share of net profits from associates and joint ventures 139 44 216 183 245 (25) Net interest and trading expense (96) (193) (50) (289) (514) (44) Other operating income and charges Net credit and other impairment (charges)/reversals (29) 3 * (26) (6) * Other (charges)/income (98) 71 * (27) 261 * Total other operating income and charges (127) 74 * (53) 255 * Internal management revenue/(charge) 39 40 (3) 79 (7) * Net operating income 2,345 2,387 (2) 4,732 4,590 3 Non-GAAP metrics Assets under management ($Ab) 722.1 959.1 (25) 722.1 941.0 (23) Equity under management ($Ab) 218.0 224.6 (3) 218.0 221.1 (1) Headcount 1,735 2,279 (24) 1,735 2,210 (21) Operating expenses Employment expenses (317) (401) (21) (718) (821) (13) Brokerage, commission and fee expenses (146) (222) (34) (368) (422) (13) Other operating expenses (462) (574) (20) (1,036) (1,272) (19) Total operating expenses (925) (1,197) (23) (2,122) (2,515) (16) Non-controlling interests 1 7 (15) * (8) (26) (69) Net profit contribution 1,427 1,175 21 2,602 2,049 27 Net profit contribution of $A2,602 million for the year ended 31 March 2026 increased 27% from $A2,049 million in the prior year due to: increased performance fees from Private Markets-managed funds, managed accounts and co-investors increased net investment income primarily driven by the gain on sale of the divested business in the second half, net of associated transaction and separation costs, partially offset by the gain on sale of Macquarie Rotorcraft in the prior year. Partially offset by: lower base fees and other fee and commission income, partially offset by lower total operating expenses following the sale of the divested business in the second half. 1 Non-controlling interests adjust reported consolidated profit or loss for the share that is attributable to non-controlling interests, such that the net profit/(loss) contribution represents the net profit/(loss) attributable to ordinary equity holders. Results Overview Segment Analysis Funding and Liquidity Capital Ten Year History Glossary Net interest and trading expense Net interest and trading expense includes interest income on financial investments, funding costs, foreign exchange movements and hedging impacts related to investments, receivables and operating leases. Net interest and trading expense of $A289 million for the year ended 31 March 2026 decreased 44% from $A514 million in the prior year, primarily driven by higher interest income, the majority of which relates to interest generated on financial investments held against MAM's reinsurance and related obligations in InEvo Re and favourable foreign exchange movements on investments and receivables. Lower funding costs following the sale of the divested business in the second half and Macquarie Rotorcraft in the prior year, were partially offset by increased funding costs primarily due to investments in Macquarie-managed funds and seed investments. Base fees Base fee income of $A2,551 million for the year ended 31 March 2026 decreased 13% from $A2,925 million in the prior year. Base fees in Private Markets decreased primarily driven by asset realisations and the impact of the spin-off of the majority of the Core/Core Plus real estate business in the prior year, partially offset by fundraising and investments made by funds and mandates. Base fees in Public Investments decreased primarily driven by the impact of the sale of the divested business in the second half, partially offset by positive net flows and market movements. Performance fees Performance fees are typically generated from Macquarie-managed funds and assets that have outperformed pre-defined benchmarks. Performance fees of $A1,381 million for the year ended 31 March 2026 increased 65% from $A837 million in the prior year. The year ended 31 March 2026 included performance fees from a range of funds, managed accounts and co-investors, including MIP IV and Aligned Data Centers co-investors, MAIF2, MKOF5 co-investors and funds managed on behalf of wealth investors. The prior year included performance fees from a range of funds, managed accounts and co-investors, including MAIF2, MEIF4 and MIP III. Other fee and commission income Other fee and commission income includes fees related to distribution and marketing services, transfer agent oversight services and commission income. Distribution and marketing service fees, primarily earned by the divested business, are offset by associated expenses that, for accounting purposes, are recognised in Operating expenses. Other fee and commission income of $A388 million for the year ended 31 March 2026 decreased 14% from $A450 million in the prior year, primarily due to the sale of the divested business in the second half. Net investment income Net investment income of $A492 million for the year ended 31 March 2026 increased 23% from $A399 million in the prior year, primarily driven by the gain on sale of the divested business in the second half, net of associated transaction and separation costs, partially offset by the gain on sale of Macquarie Rotorcraft in the prior year. Share of net profits from associates and joint ventures Share of net profits from associates and joint ventures of $A183 million for the year ended 31 March 2026 decreased 25% from $A245 million in the prior year, primarily driven by lower net profits from the sale of underlying assets, partially offset by gains on asset revaluations within equity accounted investments and funds. Other (charges)/income Other charges of $A27 million for the year ended 31 March 2026 compared to other income of $A261 million in the prior year, primarily driven by the non-recurrence of operating lease income following the sale of Macquarie Rotorcraft and the remeasurement of MAM's reinsurance and related obligations in InEvo Re. Operating expenses Total operating expenses of $A2,122 million for the year ended 31 March 2026 decreased 16% from $A2,515 million in the prior year, primarily driven by the sale of the divested business in the second half. AS AT MOVEMENT Mar 26 $Ab Sep 25 $Ab Mar 25 $Ab Sep 25 % Mar 25 % AUM by type Private Markets 1 Infrastructure Equity 346.8 348.6 324.6 (1) 7 Infrastructure Debt 33.3 34.2 33.7 (3) (1) Real Estate 2 26.0 24.1 20.9 8 24 Agriculture 5.4 5.0 4.9 8 10 Transport Finance 4.6 4.7 4.9 (2) (6) Total Private Markets 416.1 416.6 389.0 (<1) 7 Public Investments Fixed Income 195.8 293.2 305.5 (33) (36) Equities 102.1 223.7 219.8 (54) (54) Alternatives and Multi-asset 8.1 25.6 26.7 (68) (70) Total Public Investments 306.0 542.5 552.0 (44) (45) Total AUM 722.1 959.1 941.0 (25) (23) AUM by region Americas 150.0 362.0 380.4 (59) (61) Europe, Middle East and Africa 199.7 218.3 211.9 (9) (6) Australia 325.9 319.2 291.9 2 12 Asia 46.5 59.6 56.8 (22) (18) Total AUM 722.1 959.1 941.0 (25) (23) Private Markets AUM of $A416.1 billion as at 31 March 2026 increased 7% from $A389.0 billion as at 31 March 2025, primarily driven by investments and net asset valuation changes, partially offset by unfavourable foreign exchange movements and divestments of underlying assets. Public Investments AUM of $A306.0 billion as at 31 March 2026 decreased 45% from $A552.0 billion as at 31 March 2025, due to the transfer of AUM following the sale of the North American and European Public Investments business. Excluding the divested business, Public Investments AUM increased 10% 3 from 31 March 2025, primarily driven by favourable net flows and market movements. 1 Private Markets AUM excluding Real Estate is calculated as the proportional ownership interest in the underlying assets of funds and mandated assets that Macquarie actively manages or advises for the purpose of wealth creation, adjusted to exclude cross-holdings in funds and reflects Macquarie's proportional ownership interest of the fund manager. Private Markets AUM includes equity yet to deploy and equity committed to assets but not yet deployed. 2 Real Estate AUM represents the proportional gross asset value (including estimated total project costs for developments) of real estate assets owned by funds or managed by investee platforms. 3 The North American and European Public Investments business AUM balance was $A274.4 billion as at 31 March 2025. Approximately $A250 billion of AUM was transferred on completion of the sale. Results Overview Segment Analysis Funding and Liquidity Capital Ten Year History Glossary 2.2 MAM: Equity Under Management The Private Markets division of MAM tracks its funds under management using an Equity under Management (EUM) measure as base management fee income is typically aligned with EUM. Type of equity investment Basis of EUM calculation Listed equity • Market capitalisation at the measurement date plus underwritten or committed future capital raisings for listed funds. Unlisted equity • Committed capital from investors at the measurement date less called capital subsequently returned to investors for unlisted funds. Invested capital at measurement date for managed businesses. 1 If a fund is managed through a joint venture with another party, the EUM amount is weighted based on Macquarie's proportionate economic interest in the joint venture management entity. Equity under Management by type and region AS AT 2,3 MOVEMENT Mar 26 Sep 25 Mar 25 Sep 25 Mar 25 $Ab $Ab $Ab % % EUM by type Listed equity Unlisted equity 7.8 210.2 8.0 216.6 7.5 213.6 (3) (3) 4 (2) Total EUM 218.0 224.6 221.1 (3) (1) EUM by region 4 Australia 14.3 15.4 16.4 (7) (13) Europe, Middle East and Africa 120.5 124.2 121.9 (3) (1) Americas 50.1 50.5 50.3 (1) (<1) Asia 33.1 34.5 32.5 (4) 2 Total EUM 218.0 224.6 221.1 (3) (1) EUM of $A218.0 billion as at 31 March 2026 decreased 1% from $A221.1 billion as at 31 March 2025, primarily driven by unfavourable foreign exchange movements, partially offset by equity raised for unlisted funds and co-investments. 1 Managed businesses includes third-party equity invested in Private Markets-managed businesses where management arrangements exist with Macquarie. 2 Excludes equity invested by Macquarie directly into businesses managed by Private Markets. 3 Where a fund's EUM is denominated in a foreign currency, amounts are translated to Australian dollars at the exchange rate prevailing at the measurement date. 4 By location of fund management team. ‌Mar 26 $Am Sep 25 $Am Movement % Mar 26 $Am Mar 25 $Am Movement % Net interest and trading income 1,443 1,456 (1) 2,899 2,717 7 Fee and commission income Wealth management fee income Banking and lending fee income 237 102 224 105 6 (3) 461 207 435 176 6 18 Total fee and commission income 339 329 3 668 611 9 Other operating income and charges Net credit and other impairment charges (12) (24) (50) (36) (45) (20) Investment and other income/(charges) 5 (4) * 1 (43) * Total other operating income and charges (7) (28) (75) (35) (88) (60) Internal management revenue/(charge) - 1 (100) 1 (3) * Net operating income 1,775 1,758 1 3,533 3,237 9 Operating expenses Employment expenses (232) (234) (1) (466) (472) (1) Brokerage, commission and fee expenses (95) (92) 3 (187) (176) 6 Technology expenses 1 (375) (387) (3) (762) (722) 6 Other operating expenses (256) (252) 2 (508) (487) 4 Total operating expenses (958) (965) (1) (1,923) (1,857) 4 Net profit contribution 817 793 3 1,610 1,380 17 Non-GAAP metrics Funds on platform ($Ab) 155.9 166.7 (6) 155.9 154.0 1 Loan portfolio ($Ab) 2 199.9 178.4 12 199.9 161.4 24 BFS deposits ($Ab) 3 215.3 192.5 12 215.3 172.4 25 Headcount 4 4,252 4,132 3 4,252 4,122 3 Headcount (excluding Technology) 2,806 2,649 6 2,806 2,713 3 Net profit contribution of $A1,610 million for the year ended 31 March 2026 increased 17% from $A1,380 million in the prior year due to: higher net interest income primarily driven by growth in the average loan and deposit portfolios, partially offset by lower margins reflecting changes in portfolio mix and lending and deposit competition higher fee and commission income driven by growth in average funds on platform, the loan portfolio and BFS deposits. Partially offset by: higher operating expenses reflecting increased technology expenses to support business growth and scalable operations. 1 Technology expenses includes employment costs (FY2026: $A276 million and FY2025: $A252 million), other staff related costs, infrastructure and support and licences. 2 The loan portfolio comprises home loans (excluding offset accounts), loans to businesses, credit cards and car loans. 3 BFS deposits include home loan offset accounts. 4 Prior comparatives have been restated for the transfer of BFS Technology employees from Corporate to BFS. Results Overview Segment Analysis Funding and Liquidity Capital Ten Year History Glossary Net interest and trading income Net interest and trading income relates to interest income earned from the loan portfolio that primarily comprises home loans, loans to businesses, car loans and credit cards. BFS also generates income from deposits, which are used as a source of funding. Net interest and trading income of $A2,899 million for the year ended 31 March 2026 increased 7% from $A2,717 million in the prior year, primarily due to 19% growth in the average loan portfolio 1 and 24% growth in the average deposit portfolio 1 . This was partially offset by lower margins reflecting changes in portfolio mix, and lending and deposit competition. Wealth management fee income Wealth management fee income relates to fees earned on a range of BFS' products and services including Wrap administration fees and Private Bank advice fees. Wealth management fee income of $A461 million for the year ended 31 March 2026 increased 6% from $A435 million in the prior year, due to higher administration and advice fees driven by higher average funds on platform. Banking and lending fee income Banking and lending fee income relates to fees earned on a range of BFS' products including home loans, car loans, credit cards, business loans and deposits. Banking and lending fee income of $A207 million for the year ended 31 March 2026 increased 18% from $A176 million in the prior year, due to growth in the loan portfolio and BFS deposits. Net credit and other impairment charges Net credit and other impairment charges of $A36 million for the year ended 31 March 2026 decreased 20% from $A45 million in the prior year, largely driven by changes in portfolio mix and the partial sale of the car loans portfolio, partially offset by uncertainty in the macroeconomic outlook and volume growth. Investment and other income/ (charges) Investment and other income of $A1 million for the year ended 31 March 2026 compared to investment and other charges of $A43 million in the prior year, mainly driven by the revaluation of an equity investment in the prior year. Operating expenses Total operating expenses of $A1,923 million for the year ended 31 March 2026 increased 4% from $A1,857 million in the prior year. Employment expenses of $A466 million for the year ended 31 March 2026 were broadly in line with the prior year, with the impact of lower average headcount, driven by digitalisation and operational improvements, largely offset by wage inflation. Brokerage, commission and fee expenses of $A187 million for the year ended 31 March 2026 were broadly in line with the prior year. Technology expenses of $A762 million for the year ended 31 March 2026 increased 6% from $A722 million in the prior year, mainly to support business growth and scalable operations. Other operating expenses of $A508 million for the year ended 31 March 2026 were broadly in line with the prior year. 1 Calculations based on average volumes net of offset accounts. ‌HALF YEAR TO FULL YEAR TO Mar 26 Sep 25 Movement Mar 26 Mar 25 Movement $Am $Am % $Am $Am % Net interest and trading income Commodities Risk management 1,359 923 47 2,282 1,964 16 Lending and financing 296 160 85 456 366 25 Inventory management and trading 602 297 103 899 690 30 Total commodities 2,257 1,380 64 3,637 3,020 20 Foreign exchange, interest rates and credit 774 658 18 1,432 1,340 7 Equities 259 229 13 488 448 9 Asset Finance 59 54 9 113 82 38 Net interest and trading income 3,349 2,321 44 5,670 4,890 16 Fee and commission income Brokerage and other trading-related fees 204 177 15 381 307 24 Other fee and commission income 137 141 (3) 278 222 25 Total fee and commission income 341 318 7 659 529 25 Net investment income 1,189 40 * 1,229 141 * Share of net profits from associates and joint ventures 38 22 73 60 40 50 Other operating income and charges Net credit and other impairment charges (274) (68) * (342) (97) 253 Net operating lease income 312 216 44 528 418 26 Other (charges)/income (21) 32 * 11 86 (87) Total other operating income and charges 17 180 (91) 197 407 (52) Internal management (charge)/revenue (15) 2 * (13) 11 * Net operating income 4,919 2,883 71 7,802 6,018 30 Operating expenses Employment expenses (484) (438) 11 (922) (804) 15 Brokerage, commission and fee expenses (279) (248) 13 (527) (481) 10 Other operating expenses (1,061) (1,085) (2) (2,146) (1,905) 13 Total operating expenses (1,824) (1,771) 3 (3,595) (3,190) 13 Non-controlling interests 1 13 1 * 14 1 * Net profit contribution 3,108 1,113 179 4,221 2,829 49 Non-GAAP metrics Headcount 2 2,727 2,791 (2) 2,727 2,738 (<1) Net profit contribution of $A4,221 million for the year ended 31 March 2026 increased 49% from $A2,829 million in the prior year due to: increased net investment income primarily due to the gain on sale from the divestment of the OnStream meters platform and other Asset Finance investment activity in the technology and energy sectors increased risk management income primarily driven by increased client hedging activity across Global Gas and Power businesses and Global Oil increased inventory management and trading income driven by supply and demand imbalances in North American Gas and Power and oil trading, partially offset by timing of income recognition on gas storage and transport contracts. Partially offset by: higher operating expenses reflecting increased investment in the CGM platform, including adjacent business opportunities, significant transaction-related costs and higher brokerage expenses higher credit and other impairment charges driven by portfolio growth, uncertainty in the macroeconomic environment and specific impairments for a small number of counterparties. 1 Non-controlling interests adjust reported consolidated profit or loss for the share that is attributable to non-controlling interests, such that the net profit/(loss) contribution represents the net profit/(loss) attributable to ordinary equity holders. 2 Prior comparatives have been restated for the transfer of CLM Operations employees from Corporate to CGM. Results Overview Segment Analysis Funding and Liquidity Capital Ten Year History Glossary Net interest and trading income Net interest and trading income of $A5,670 million for the year ended 31 March 2026 increased 16% from $A4,890 million in the prior year. Commodities net interest and trading income Risk management Income from risk management is driven by managing clients' exposure to commodity price volatility, which is supported by our strong internal risk management framework. Risk management income of $A2,282 million for the year ended 31 March 2026 increased 16% from $A1,964 million in the prior year, primarily driven by increased client hedging activity across Global Gas and Power businesses and Global Oil. Lending and financing Lending and financing activities include interest income from the provision of loans and working capital finance to clients across a range of commodity sectors including metals, energy and agriculture. Commodities lending and financing activities are primarily secured against underlying assets and typically have associated hedging to protect against downside risk. Lending and financing income of $A456 million for the year ended 31 March 2026 increased 25% from $A366 million in the prior year, driven by increased client activity across the energy and resources sectors. Inventory management and trading CGM enters into financial and physical contracts including exchange traded derivatives, OTC derivatives, storage contracts and transportation agreements as part of its commodities platform. These arrangements enable CGM to facilitate client transactions and provide CGM with trading opportunities where there is an imbalance between the supply and demand for commodities. Revenue is dependent on a number of factors including the volume of transactions, the level of risk assumed and the volatility of price movements across commodity markets and products. Storage and transportation contracts, which are managed on a fair value basis for financial and risk management purposes, are required to be accounted for on an accruals basis for statutory reporting purposes, which may result in some variability in the timing of reported income. Inventory management and trading income of $A899 million for the year ended 31 March 2026 increased 30% from $A690 million in the prior year, driven by supply and demand imbalances in North American Gas and Power and oil trading, partially offset by timing of income recognition on gas storage and transport contracts. Foreign exchange, interest rates and credit net interest and trading income Net interest and trading income from foreign exchange, interest rates and credit related activities are generated from the provision of trading and hedging services to a range of corporate and institutional clients globally, in addition to making secondary markets in corporate debt securities, syndicated bank loans and middle market loans and providing specialty lending. Net interest and trading income from foreign exchange, interest rates and credit related activities of $A1,432 million for the year ended 31 March 2026 increased 7% from $A1,340 million in the prior year, due to increased contributions from financing origination and continued strong client hedging activity in structured foreign exchange products. Equities net interest and trading income Equities net interest and trading income is generated from the issue of derivative products, the provision of equity finance solutions to institutional clients and the conduct of risk management and trading activities. Equities net interest and trading income of $A488 million for the year ended 31 March 2026 increased 9% from $A448 million in the prior year, primarily driven by increased client activity. Continued Fee and commission income Fee and commission income of $A659 million for the year ended 31 March 2026 increased 25% from $A529 million in the prior year, driven by higher structuring fees in commodities products and increased client activity in Futures. Net investment income Net investment income of $A1,229 million for the year ended 31 March 2026 was substantially up from $A141 million in the prior year, primarily due to the gain on sale from the divestment of the OnStream meters platform and other Asset Finance investment activity in technology and energy sectors. Net credit and other impairment charges Net credit and other impairment charges of $A342 million for the year ended 31 March 2026 were substantially up from $A97 million in the prior year, driven by portfolio growth, uncertainty in the macroeconomic environment and specific impairments for a small number of counterparties. Net operating lease income Net operating lease income of $A528 million for the year ended 31 March 2026 increased 26% from $A418 million in the prior year, primarily driven by an increased contribution from the meters sector. Other (charges)/income Other income of $A11 million for the year ended 31 March 2026 decreased 87% from $A86 million in the prior year, primarily driven by the write-down of operating lease assets. Operating expenses Total operating expenses of $A3,595 million for the year ended 31 March 2026 increased 13% from $A3,190 million in the prior year. Employment expenses of $A922 million for the year ended 31 March 2026 increased 15% from $A804 million in the prior year, driven by one-off staff related costs and wage inflation. Brokerage, commission and fee expenses of $A527 million for the year ended 31 March 2026 increased 10% from $A481 million in the prior year, due to increased hedging and trading-related expenses across equities, foreign exchange, interest rates and credit. Other operating expenses of $A2,146 million for the year ended 31 March 2026 increased 13% from $A1,905 million in the prior year, mainly reflecting increased investment in the CGM platform, including adjacent business opportunities and significant transaction-related costs. Results Overview Segment Analysis Funding and Liquidity Capital Ten Year History Glossary 2.5 Macquarie Capital ‌HALF YEAR TO FULL YEAR TO Mar 26 Sep 25 Movement Mar 26 Mar 25 Movement $Am $Am % $Am $Am % Net interest and trading income 426 497 (14) 923 812 14 Fee and commission income 752 850 (12) 1,602 1,453 10 Net investment income 792 292 171 1,084 612 77 Share of net losses from associates and joint ventures (102) (116) (12) (218) (129) 69 Other operating income and charges Net credit and other impairment charges (296) (13) * (309) (115) 169 Other charges (16) (11) 45 (27) (46) (41) Total other operating income and charges (312) (24) * (336) (161) 109 Internal management revenue/(charge) 6 (3) * 3 51 (94) Net operating income 1,562 1,496 4 3,058 2,638 16 Operating expenses Employment expenses (272) (293) (7) (565) (618) (9) Brokerage, commission and fee expenses (75) (65) 15 (140) (124) 13 Other operating expenses (411) (416) (1) (827) (842) (2) Total operating expenses (758) (774) (2) (1,532) (1,584) (3) Non-controlling interests 1 (24) (11) 118 (35) (11) 218 Net profit contribution 780 711 10 1,491 1,043 43 Non-GAAP metrics Headcount 2 1,515 1,491 2 1,515 1,551 (2) Net profit contribution of $A1,491 million for the year ended 31 March 2026 increased 43% from $A1,043 million in the prior year due to: higher net investment income primarily due to gains on the equity investment portfolio driven by exits in the infrastructure and technology sectors higher net interest income primarily from the private credit portfolio, which benefitted from $A2.5 billion 3 of growth in average drawn loan assets higher fee and commission income driven mainly by higher mergers and acquisitions fee income, particularly in the Americas and ANZ, and higher brokerage fee income due to increased market activity, particularly in Asia. Partially offset by: higher impairment charges driven by a small number of underperforming assets higher share of net losses from associates and joint ventures which reflected changes in the composition and performance of the investment portfolio. 1 Non-controlling interests adjust reported consolidated profit or loss for the share that is attributable to non-controlling interests, such that the net profit/(loss) contribution represents the net profit/(loss) attributable to ordinary equity holders. 2 Prior comparatives have been restated for the transfer of CLM Operations employees from Corporate to Macquarie Capital. 3 Average volume calculation is based on balances converted at spot foreign exchange rates as at 31 March 2026. 2.5 Macquarie Capital Continued Net interest and trading income Net interest and trading income includes the interest income earned from debt investments and the funding costs associated with both the debt and equity investment portfolios. Net interest and trading income of $A923 million for the year ended 31 March 2026 increased 14% from $A812 million in the prior year, primarily due to higher net interest income from the private credit portfolio, benefitting from $A2.5 billion 1 of growth in average drawn loan assets. Fee and commission income Fee and commission income of $A1,602 million for the year ended 31 March 2026 increased 10% from $A1,453 million in the prior year. Mergers and acquisitions fee income increased 15% on the prior year, particularly in the Americas and ANZ, which benefitted from several significant transactions. Capital markets fee income decreased following the exit of the debt capital markets business in the Americas. Brokerage income increased 15% on the prior year due to increased market activity, particularly in Asia. Net investment Income Net investment income of $A1,084 million for the year ended 31 March 2026 increased 77% from $A612 million in the prior year, primarily due to gains on the equity investment portfolio driven by exits in the infrastructure and technology sectors, particularly in the second half. Share of net losses from associates and joint ventures Share of net losses from associates and joint ventures of $A218 million for the year ended 31 March 2026 increased 69% from $A129 million in the prior year, primarily driven by changes in the composition and performance of the investment portfolio. Net credit and other impairment charges Net credit and other impairment charges of $A309 million for the year ended 31 March 2026 were substantially up from $A115 million in the prior year, which reflected higher impairment charges driven by a small number of underperforming assets. Operating expenses Total operating expenses of $A1,532 million for the year ended 31 March 2026 decreased 3% from $A1,584 million in the prior year, primarily driven by lower employment expenses following the exit of the debt capital markets business in the Americas. 1 Average volume calculation is based on balances converted at spot foreign exchange rates as at 31 March 2026. Results Overview Segment Analysis Funding and Liquidity Capital Ten Year History Glossary 2.6 Corporate ‌HALF YEAR TO FULL YEAR TO Mar 26 Sep 25 Movement Mar 26 Mar 25 Movement $Am $Am % $Am $Am % Net interest and trading income 526 430 22 956 972 (2) Fee and commission expense (22) (11) 100 (33) (15) 120 Net investment (losses)/income (30) - * (30) 221 * Share of net profits from associates and joint ventures 26 - * 26 12 117 Other operating income and charges Net credit and other impairment (charges)/reversals (68) 73 * 5 (98) * Other charges (217) (285) (24) (502) (315) 59 Total other operating income and charges (285) (212) 34 (497) (413) 20 Internal management charge (30) (40) (25) (70) (52) 35 Net operating income and charges 185 167 11 352 725 (51) Operating expenses Employment expenses (2,822) (2,448) 15 (5,270) (4,692) 12 Other operating expense recoveries 778 916 (15) 1,694 1,698 (<1) Total operating expenses (2,044) (1,532) 33 (3,576) (2,994) 19 Income tax expense (1,089) (771) 41 (1,860) (1,326) 40 Non-controlling interests 1 8 (1) * 7 9 (22) Net loss contribution (2,940) (2,137) 38 (5,077) (3,586) 42 Non-GAAP metrics Headcount 2 8,895 9,128 (3) 8,895 9,114 (2) Net loss contribution of $A5,077 million for the year ended 31 March 2026 increased 42% from $A3,586 million in the prior year due to: higher employment expenses driven by higher performance-related profit share higher income tax expense driven by the performance of the group, as well as the geographical composition and nature of earnings lower net investment income primarily driven by the non-recurrence of asset realisations in Green Investments higher other charges driven by impairments of Green Investments and the non-recurrence of a gain on the sale of centrally held assets, partially offset by lower net expenditure on Green Investment platforms. 1 Non-controlling interests adjust reported consolidated profit or loss for the share that is attributable to non-controlling interests, such that the net profit/(loss) contribution represents the net profit/(loss) attributable to ordinary equity holders. 2 Prior comparatives have been restated for the transfer of CLM Operations employees from Corporate to CGM and Macquarie Capital. 2.6 Corporate Continued Net interest and trading income Net interest and trading income in the Corporate segment includes the net result of managing Macquarie's liquidity and funding requirements, with the Operating Groups assumed to be fully debt funded for the purposes of the internal funding charges. The Corporate segment also includes earnings on capital, funding costs associated with investments held centrally, and accounting volatility arising from movements in underlying rates relating to economically hedged positions where hedge accounting is not applied. Net interest and trading income of $A956 million for the year ended 31 March 2026 was broadly in line with the prior year. Net investment (losses)/income Net investment losses of $A30 million for the year ended 31 March 2026 compared to net investment income of $A221 million in the prior year, primarily driven by the non-recurrence of asset realisations in Green Investments. Net credit and other impairment (charges)/reversals Net credit and other impairment reversals of $A5 million for the year ended 31 March 2026 compared to net credit and other impairment charges of $A98 million in the prior year, primarily driven by a legacy goodwill impairment in the prior year. Other charges Other charges of $A502 million for the year ended 31 March 2026 increased 59% from $A315 million in the prior year, driven by higher impairments of Green Investments and the non-recurrence of a gain on the sale of centrally held assets, partially offset by lower net expenditure on Green Investment platforms. Employment expenses Employment expenses relate to the Consolidated Entity's Central Service Groups including COG, FPE, RMG, LGG and Central Executive, as well as expenses associated with the Consolidated Entity's profit share and retention plans. Employment expenses of $A5,270 million for the year ended 31 March 2026 increased 12% from $A4,692 million in the prior year, primarily driven by higher performance-related profit share. Other operating expense recoveries Other operating expense recoveries in the Corporate segment include the recovery of Central Service Groups' costs (including employment-related costs 1 ) from the Operating Groups, partially offset by non-employment related operating costs of the Corporate segment. Other operating expense recoveries of $A1,694 million for the year ended 31 March 2026 were broadly in line with the prior year. 1 Performance-related profit share and share-based payments expenses related to Macquarie Group Employee Retained Equity Plan (MEREP) are not allocated to the Operating Groups. Results Overview Segment Analysis Funding and Liquidity Capital Ten Year History Glossary 2.7 International Income ‌International income 1 by region HALF YEAR TO FULL YEAR TO Mar 26 Sep 25 Movement Mar 26 Mar 25 Movement $Am $Am % $Am $Am % Americas 3,268 2,667 23 5,935 5,114 16 Asia 907 897 1 1,804 1,683 7 Europe, Middle East and Africa 3,423 1,852 85 5,275 4,166 27 Total international income 7,598 5,416 40 13,014 10,963 19 Australia 2 2,973 3,068 (3) 6,041 5,468 10 Total income (excluding Corporate items) 10,571 8,484 25 19,055 16,431 16 Corporate items 215 207 4 422 777 (46) Net operating income (as reported) 10,786 8,691 24 19,477 17,208 13 International income (excluding Corporate items) ratio (%) 72 64 68 67 International income by Operating Group and region FULL YEAR TO MAR 26 Europe, Americas Asia Middle East and Africa Total International Australia 2 Total Income Total International $Am $Am $Am $Am $Am $Am % MAM 2,443 732 861 4,036 617 4,653 87 BFS - - - - 3,532 3,532 - CGM 2,430 601 3,370 6,401 1,414 7,815 82 Macquarie Capital 1,062 471 1,044 2,577 478 3,055 84 Total 5,935 1,804 5,275 13,014 6,041 19,055 68 Total international income of $A13,014 million for the year ended 31 March 2026 increased 19% from $A10,963 million in the prior year. Total international income represented 68% of total income (excluding Corporate items) which increased 1% on the prior year. Income from the Americas of $A5,935 million for the year ended 31 March 2026 increased 16% from $A5,114 million in the prior year. The increase was mainly driven by higher performance fees in MAM, increased client hedging activity and trading gains in North American Gas and Power markets, in CGM, as well as gains on the equity investment portfolio in Macquarie Capital. This was partially offset by the timing of income recognition on North American Gas and Power contracts, in CGM, and higher impairment charges in Macquarie Capital. In Asia, income of $A1,804 million for the year ended 31 March 2026 increased 7% from $A1,683 million in the prior year. The increase was primarily driven by higher brokerage income in Macquarie Capital, higher performance fees in MAM and increased client hedging activity in oil markets, partially offset by specific impairments for a small number of counterparties in CGM. Income from Europe, Middle East and Africa of $A5,275 million for the year ended 31 March 2026 increased 27% from $A4,166 million in the prior year. The increase was mainly driven by the gain on sale from the divestment of the OnStream meters platform and increased client hedging activity in gas markets, in CGM. In addition, Macquarie Capital included higher gains on the equity investments portfolio and higher net interest income on the private credit portfolio. This was partially offset by the net impact of the divestment of Macquarie Rotorcraft in the prior year, in MAM. In Australia, income of $A6,041 million for the year ended 31 March 2026 increased 10% from $A5,468 million in the prior year. The increase was primarily driven by growth in the average loan and deposit portfolios in BFS, increased contributions from Financial Markets in CGM, higher mergers and acquisitions fee income in Macquarie Capital and higher performance fees in MAM. 1 International income reflects net operating income excluding earnings on capital and other corporate items, including internal management revenue/(charge). 2 Includes New Zealand. 2.8 Headcount ‌AS AT MOVEMENT Sep 25 Mar 25 Mar 26 Sep 25 Mar 25 % % Headcount by Operating Group 1 MAM 1,735 2,279 2,210 (24) (21) BFS 4,252 4,132 4,122 3 3 CGM 2 2,727 2,791 2,738 (2) (<1) Macquarie Capital 2 1,515 1,491 1,551 2 (2) Total headcount - Operating Groups 10,229 10,693 10,621 (4) (4) Total headcount - Corporate 2 8,895 9,128 9,114 (3) (2) Total headcount 19,124 19,821 19,735 (4) (3) Headcount by region Australia 3 9,556 9,461 9,594 1 (<1) International: Americas 2,328 3,029 2,979 (23) (22) Asia 4,412 4,395 4,271 <1 3 Europe, Middle East and Africa 2,828 2,936 2,891 (4) (2) Total headcount - International 9,568 10,360 10,141 (8) (6) Total headcount 19,124 19,821 19,735 (4) (3) International headcount ratio (%) 50 52 51 Total headcount of 19,124 as at 31 March 2026 decreased 3% from 19,735 as at 31 March 2025, mainly driven by the sale of the divested business in MAM and operational efficiency savings enabled through investment in technology and transformation initiatives. 1 Headcount numbers in this document include staff employed in certain operationally segregated subsidiaries (OSS). 2 Prior comparatives have been restated for the transfer of CLM Operations employees from Corporate to CGM and Macquarie Capital. 3 Includes New Zealand.

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