Macquarie : 2026 full-year result - presentation

About this update from Macquarie Group, Ltd.

01 Introduction 04 Outlook 02 Overview of Result 05 Appendices 03 Result Analysis and Financial Management ~48% Annuity-style | Income ~28% ~24% Markets-facing | Income About Macquarie BFS MAM CGM MacCap Banking and Financial Services Macquarie Asset Management Commodities and Global Markets Macquarie Capital Macquarie's retail banking and financial services business with BFS deposits 1 of $A215.3b 2 , loan portfolio 3 of $A199.9b 2 and funds on platform of $A155.9b 2 A leading global asset manager with Assets under Management of $A722.1b 2 , investing to deliver positive outcomes for our clients, portfolio companies and communities 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 Global capability in: Advisory and capital raising services, providing clients with specialist expertise Provides a diverse range of personal banking, wealth management and business banking products and services to retail clients, advisers, brokers and business clients Provides clients with a diverse range of investment solutions including real assets, real estate, credit and insurance, secondaries and systematic investments Capital and financing: provides clients with financing and asset management solutions across the capital structure Risk management: helping clients manage exposure to price changes in commodities, currencies, credit and equity markets Market access: helping clients access assets and prices via liquidity and electronic markets globally Physical execution and logistics: supporting clients with access to physical commodities and facilitating their transport from production to consumption and flexible capital solutions across a range of sectors Specialist investing across private credit, private equity, real estate, growth equity, venture capital and infrastructure and energy Equities brokerage, providing clients with access to equity research, sales, execution capabilities and corporate access with a CGM's deep expertise and physical presence allow us to optimise how we manage both our clients' risk exposures and trading opportunities we see which are conducted within Macquarie's strong internal risk management framework focus on Asia-Pacific Corporate Operations Group Financial Management, People and Engagement Legal and Governance Group Risk Management Group Central Service Groups An independent and centralised function responsible for independent and objective review and challenge, oversight, monitoring and reporting in relation to Macquarie's material risks. RMG designs and oversees the implementation of the risk management framework Provides a full range of legal and corporate governance services, including strategic legal and governance advice and risk assessment on corporate transactions, treasury and funding, insurance, regulatory enquiries and litigation Responsible for managing the Group's financial, tax and treasury activities and strategic priorities, fostering our culture through people and community engagement, and engaging with stakeholders to protect and promote Macquarie's reputation globally Brings together specialist capabilities in technology, global security, data, AI, market services, corporate real estate, business resilience, and procurement to support Macquarie's growth Note: Reference to Macquarie's established, diverse income streams is based on FY26 net operating income. 1. BFS deposits include home loan offset accounts. 2. As at 31 Mar 26. 3. Loan portfolio comprises home loans (excluding offset accounts), loans to businesses, credit cards and car loans. 2H26 result: $A3,192m up 93% on 1H26 FY26 result: $A4,847m up 30% on FY25 2H26 1H26 2H26 v FY26 FY25 FY26 v $Am $Am 1H26 $Am $Am FY25 Net operating income 10,786 8,691 24% 19,477 17,208 13% 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% Effective tax rate 1 (%) 25.5 31.4 27.6 26.2 Loss/(profit) attributable to non-controlling interests 4 (26) (22) (27) Profit attributable to MGL shareholders 3,192 1,655 93% 4,847 3,715 30% Annualised return on equity (%) 18.3 9.6 91% 14.0 11.2 25% Annualised return on tangible equity (%) 19.4 10.2 90% 14.8 12.7 17% Basic earnings per share $A8.41 $A4.37 92% $A12.77 $A9.79 30% Dividend per ordinary share $A4.20 $A2.80 50% $A7.00 $A6.50 8% 1. Calculation of the effective tax rate excludes the impact of non-controlling interests, in line with the effective tax rate presented on a statutory basis. FY26 net profit contribution from Operating Groups $A9,924m up 36% on FY25 Annuity-style Markets-facing Non-Banking Group $A2,602m on FY25 Macquarie Asset Management (MAM) Increase primarily driven by higher performance fees $A1,491m on FY25 Macquarie Capital (MacCap) Increase driven by higher income from equity investments, M&A fees, brokerage and the private credit portfolio, partially offset by higher impairment charges and an increased share of net losses from associates and joint ventures Banking Group $A1,610m on FY25 Banking and Financial Services (BFS) Growth in the loan portfolio and BFS deposits, partially offset by lower margins reflecting changes in portfolio mix and lending and deposit competition and higher technology expenses to support business growth and scalable operations $A4,221m on FY25 Commodities and Global Markets 1 (CGM) Significantly higher Asset Finance contribution due to the gain on sale from the divestment of the OnStream meters platform. Commodities contribution was higher driven by increased risk management income from client hedging activity across Global Gas and Power businesses and Global Oil, as well as higher inventory management and trading income from supply and demand imbalances in North American Gas and Power and oil trading. This was partially offset by the timing of income recognition on gas storage and transport contracts Note: Where referenced in this document, net profit contribution is management accounting profit before unallocated corporate items, profit share and income tax. 1. Certain activities in the Financial Markets and Commodity Markets and Finance businesses are undertaken from within the Non-Banking Group. Diversification by region Total staff 1 19,124 of which 50% international. A further ~265,000 people employed across managed fund assets and investments 2 Americas EMEA Asia Australia 3 31% of total income 28% of total income 9% of total income 32% of total income Total income 4 2,328 $A5,935m Total income 2,828 $A5,275m Total income 4,412 $A1,804m Total income 9,556 $A6,041m Assets under management $A150.0b Assets under management $A199.7b Assets under management $A46.5b Assets under management $A325.9b Employing ~68,000 people Employing ~133,000 people Employing ~45,000 people Employing ~19,000 people NORTH AMERICA LATIN AMERICA EUROPE MIDDLE EAST ASIA AUSTRALIA NEW ZEALAND Bermuda New York Mexico City Amsterdam London Dubai Bangkok Kuala Lumpur Adelaide Melbourne Auckland Calgary Orlando Sao Paulo Berlin Luxembourg Beijing Manila Brisbane Perth Chicago Philadelphia Cambridge Madrid AFRICA Dongguan Mumbai Canberra Sydney Houston San Diego Dublin Milan Johannesburg Gurugram Seoul Gold Coast Jacksonville San Jose Edinburgh Munich Hong Kong Shanghai Manly Los Angeles Seattle Essex Paris Hsin-Chu Singapore Minneapolis Toronto Frankfurt Watford Hyderabad Taipei Geneva Zurich Jakarta Tokyo 1. Includes staff employed in certain operationally segregated subsidiaries throughout the presentation. 2. Includes people employed through Private Markets-managed fund assets in Real Assets and investments where Macquarie Capital holds significant influence, including operationally segregated subsidiaries. 3. Includes New Zealand. 4. Net operating income excluding earnings on capital and other corporate items. Private Markets Public Investments $A416.1b in Assets under Management 1 , up 7% on 31 Mar 25, primarily driven by increased investments and net asset valuation changes, partially offset by unfavourable foreign exchange movements and divestments $A218.0b in Equity under Management 3 , down 1% on 31 Mar 25, primarily driven by unfavourable foreign exchange movements offset by fundraisings. Equivalent to $A192.3b of fee-paying AUM 4 $A20.9b in new equity raised from clients across a diverse range of strategies in real assets, real estate, private credit and secondaries $A25.2b of equity invested across 32 investments, including: 16 in private credit, 11 in real assets and 5 in real estate, with transactions including Diamond Infrastructure Solutions, Bristol and Birmingham Airports and Vocus $A5.4b of equity returned to clients from divestments $A21.1b of equity to deploy , down 23% on 31 Mar 25 $A306.0b in Assets under Management 1 , up 10% on 31 Mar 25 2 , primarily driven by favourable net flows and market movements. The divestment of the North American and European public investments business resulted in the transfer of ~$A250b AUM in 2H26 $A19.3b positive net flows across liquid strategies in the Australian public investments business ~94% of Assets under Management 2,6 across strategies outperforming their respective 3-year benchmarks No. 1 active ETF manager by flows on the ASX in Australia 7 , with 8 actively managed exchange traded funds (ETFs) in Australia, totalling Assets under Management of $A1.9b; representing ~5x annual growth Investment Manager of the Year in Money magazine's Best of the Best Awards 2026 8 - fourth consecutive year Macquarie Asset Management Operating income $A4,732m Net profit contribution $A2,602m AUM 1 $A722.1b 3% ON FY25 27% ON FY25 8% ON 31 Mar 25 2 ADJUSTED Notable transactions signed and expected to close in FY27: Divestment of Aligned Data Centers at an enterprise value of ~$US40b, the largest data centre transaction globally and one of the largest private equity exits 5 Divestment of Macquarie AirFinance after growing the portfolio to 352 commercial aircraft across 48 countries Acquisition of Spire Management Limited , a leading European CLO manager, establishing MAM as a global CLO manager Diversity of income ~54% ~29% ~17% Note: Reference to Macquarie's established, diverse income streams is based on FY26 net operating income. 1. As at 31 Mar 26. Assets under Management (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. AUM includes equity yet to deploy and equity committed to assets but not yet deployed. 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. 2. Excluding the AUM transferred following the sale of the North American and European public investments business. 3. Equity under Management (EUM) includes market capitalisation at measurement date for listed funds, the sum of original committed capital less capital subsequently returned for unlisted funds and mandates as well as invested capital for managed businesses. 4. Fee-paying AUM represents the Annuity-style Markets-facing AUM earning management fees and/or performance fees, measured on the applicable fee-earning basis. 5. By enterprise value. 6. Measured excluding non-discretionary mandates, such as model delivery, advisory and execution-constrained mandates. 7. The ranking is based on the net flows of active ETF managers on the ASX between Mar 25 and Mar 26. 8. Money magazine's Best of the Best Awards 2026. © Macquarie Group Limited 10 Personal Banking Business Banking Wealth Management owner-occupier lending tiers Deposits Home loan portfolio 4 of $A181.3b , up 28% on 31 Mar 25, representing approximately 7.1% of the Australian market Home loan growth driven by strong demand in lower loan-to-value ratio (LVR) and More than 95% of all home loans originated via the broker channel, with technology investment enabling market-leading turnaround times Continued investment in digital banking experiences, achieving Net Promoter Scores (NPS) of 46.0 for Mobile Banking, 31.4 for Online Banking and 25.5 for Consumer -significantly above major bank peers 5 Macquarie named Bank of the Year in the 2025 Money Magazine Consumer Finance Awards 6 , MFAA Major Lender of the Year in the 2025 National Excellence Awards 7 and Bank of the Year in the 2025 MPA Brokers on Banks survey 8 Business Banking loan portfolio of $A18.1b , up 8% on 31 Mar 25 Business Banking loan growth driven by an increase in client acquisition across core segments and a continued build into emerging segments Expanded access to fee-free banking offering, removing monthly account keeping, electronic transaction and dishonour fees from business deposit products Continued investment in digital solutions for enhanced client experience, including initial launch of mobile banking offering and ongoing investment in originations platform and capability Funds on platform of $A155.9b, up 1% on 31 Mar 25 Ongoing investment in digital functionality including enhancements to Adviser Online Continued new client growth in Macquarie's Private Bank, with an ongoing focus on the high net worth segment Banking and Financial Services Operating income $A3,533m Net profit contribution $A1,610m 9% ON FY25 17% ON FY25 Home loan portfolio summary 31 Mar 26 Average LVR at Origination 1 65% Average Dynamic LVR 2 51% Owner Occupied 3 62% Principal and Interest 3 80% Fixed Rate 3 5% Diversity of income ~100% Annuity-style BFS deposits 9 of $A215.3b , up 25% on 31 Mar 25, representing approximately 6.5% of the Australian market, with continued diversification of deposit base Deposits growth driven by market-leading digital banking experiences, including launch of AI-powered intelligent, human-like support assistant ' Q' 'No hoops, no catches' savings account offering resonating strongly, with customers benefitting from competitive interest rates Helping Australian households and businesses meet their savings goals, with more than 97% of total BFS deposits interest bearing 10 Client numbers approximately 2.3 million Note: Reference to Macquarie's established, diverse income streams is based on FY26 net operating income. 1. Based on facilities on books as at 31 Mar 26, weighted by size of loan. 2. Property valuation source: Cotality. Dynamic LVR is calculated based on the current net balance of loans against their current estimated valuation where available. 3. Calculated on a gross balance basis, excluding offsets, for the portfolio. 4. Home loan portfolio excludes offset accounts. 5. Data sourced from RFI-DBM Atlas as at Mar 26. Based on Australian consumers aged 18 years and over, rating their likelihood to recommend that bank. Includes the major Australian Banks. Consistent with industry practice, Mobile NPS and Online NPS are from customers who see that bank as their main financial institution; Consumer NPS is from customers who have any financial relationship with that bank. 6. For the third year in a row. 7. For the sixth year in a row. 8. For the fourth year in a row. 9. BFS deposits include home loan offset accounts. 10. $A5.3b of non-interest bearing deposits. © Macquarie Group Limited 11 Asset Finance 17% 1 Commodities 51% 1 Financial Markets 32% 1 Significant contribution from the divestment of the OnStream meters platform Continued positive performance and contribution across all industries Total portfolio 2 of $A7.6b, up 25% from $A6.1b as at 31 Mar 25 Particularly strong origination and portfolio growth in shipping, energy, resources and technology 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 Increased lending and financing contribution across energy and resources sectors Named House of the Year for Oil and Products 3,4 , Derivatives 3,4 , Natural Gas/LNG 4 , Base Metals 4 , and Commodity Trade Finance 4 ~7.6 billion cubic feet of natural gas volume traded across North America daily Foreign exchange, interest rates and credit Strong client activity globally across FX and interest rate markets Increased contribution from financing activity with continued strong performance from the Americas and growth in client engagement across the Americas, Australia and EMEA Futures Consistent contribution across regions underpinned by client activity No. 1 Futures Broker on the ASX by traded volume 5 No. 3 on the LME by overall volume 6 Equity Derivatives and Trading Increased contribution from client equity financing, structured transactions and warrant activity Commodities and Global Markets Operating income $A7,802m Net profit contribution $A4,221m 45+ years of 30% ON FY25 49% ON FY25 client partnership Diversity of income ~18% ~54% ~28% Annuity-style Markets-facing Note: Reference to Macquarie's established, diverse income streams is based on FY26 net operating income. 1. Percentages are based on net profit contribution before impairment charges and excluding the gain on sale from the divestment of the OnStream meters platform in Mar 26. 2. Restated to exclude the OnStream meters platform. 3. Energy Risk Awards 2025. 4. Energy Risk Asia Awards 2025. 5. ASX Futures 24 (SFE) Monthly Report Mar 26. 6. LME Member Volume Ranking Report Mar 26. © Macquarie Group Limited 12 Macquarie Capital Operating income $A3,058m Net profit contribution $A1,491m 1 16% MacCap Advising and investing in areas of deep expertise in sectors such as Infrastructure, Government Services, Critical Minerals & Energy, Insurance, Technology, FinTech, Software and Gaming Private Credit portfolio of $A27.3b 1 , up 5% on 31 Mar 25, including $A11.3b deployment in FY26 Equity portfolio of $A5.2b 2 , down 13% on 31 Mar 25, primarily driven by exits in the infrastructure and technology sectors Brokerage income increased by 15%, led by Asia, benefitting from strong capital inflows into the region and elevated market volatility No. 1 in ANZ for M&A 3 and Bookrunner ECM 4 Financial Adviser of the Year, APAC, for the second consecutive year 5 Europe Oil and Gas Deal of the Year - Mitsui O.S.K. Lines (MOL) acquisition of LBC Tank Terminals 6 Asia-Pacific Wind Deal of the Year, Squadron 7 Advisory and Capital Markets Principal A global advisory and principal investing platform that brings deep expertise, integrated solutions and balance sheet investments across the capital structure to clients and partners M&A fee income up on FY25 Take-private of ECN Capital , which originates and services high-quality consumer credit assets on behalf of 100+ North American-based institutional investor, insurance company, pension plan, bank and credit union partners Lead financial adviser to an investor group led by Warburg Pincus LLC Acquisition of Lowe Rental , a global leader in equipment leasing, specialising in refrigeration units, temporary kitchens and catering equipment Exclusive financial adviser to MML Keystone Acquisition of Emsere , a Netherlands-based global leader in clinical trial equipment rental and logistics, serving pharmaceutical companies and contract research organisations (CROs) across 100+ countries Exclusive financial adviser to Antin Infrastructure Partners Acquisition of Zenith Energy , a leader in remote power and hybrid-renewable power solutions for Australia's mining industry Financial adviser to KKR 37 ECM transactions completed, raising $A14.4b of equity 8 , including AUB Group Limited's $A400m institutional placement and Time Interconnect Technology Limited's ~$US210m primary placement Investment-related income significantly up on FY25, primarily driven by asset realisations and net income from the private credit portfolio Completed the sale of our remaining stake in Prime Data Centers , a leading data centre developer across North America and Europe. This was the culmination of a successful 5-year journey, taking Prime from a single less than 10MW asset to a platform with multiple gigawatts of capacity under development Add-on investment in Entarian, an integrated mission solutions provider for government customers across the space, defence and civilian markets Led the Series A funding round for Foresight , an AI-enabled project management platform specialising in data centre construction Supported Keylane, a Dutch pension and insurance administration software provider owned by Pollen Street Capital, as lead lender in its acquisition of Heywood Pension Technologies , a UK pension administration software provider Supported the acquisition of US Salt , a US provider of evaporated salt, by ContextLogic ON FY25 43% ON FY25 2 Private Credit $A27.3b Equity $A5.2b Diversity of income ~30% ~18% ~52% Note: Reference to Macquarie's established, diverse income streams is based on FY26 net operating income. 1. Committed private credit portfolio as at 31 Mar 26. 2. Committed equity portfolio as at 31 Mar 26. 3. Dealogic (1 Apr 25 to 31 Mar 26 completed M&A transactions, any ANZ involvement by deal value and count). 4. Dealogic (1 Jan 26 to 31 Mar 26 by deal value). 5. IJGlobal Awards Annuity-style Markets-facing 2025 and 2024. 6. IJGlobal Investor Awards 2025, Macquarie acted as exclusive sell-side financial adviser to Ardian, PGGM and APG on their 100% sale of LBC Tank Terminals to Mitsui O.S.K. Lines for a total equity value of $US1.715b. 7. PFI Awards 2025, Macquarie acted as sole financial adviser and debt arranger to Squadron Energy on the $A1b debt financing of its Clarke Creek Wind Farm Stage 1. 8. Dealogic (1 Apr 25 to 31 Mar 26). ANZ ECM includes ANZ national, ASX-NZX and non-rank eligible deals; excludes convertible bonds. Asia ECM reflects Asia Exchange data, Lead Manager © Macquarie Group Limited (Full) roles only, including non-rank eligible deals. 13 Funded balance sheet remains strong Term liabilities exceed term assets 31 Mar 25 31 Mar 26 450 400 350 300 250 200 150 100 50 0 $Ab $Ab Other 1 1% PPE and intangibles 5 3% Equity investments 4% Hybrids and subordinated debt 4% Equity 10% Loan assets >1 year 4 15% Debt >1 year 3 21% Home loans 39% Deposits 48% Net trading assets 14% Loan assets <1 year 3% Cash and liquid assets 22% Commercial paper and certificates of deposit 11% Debt <1 year 2 5% Other 1 1% Loan assets >1 year 4 14% Equity investments 3% PPE and intangibles 5 2% Hybrids and subordinated debt 4% Equity 9% Debt >1 year 3 19% Home loans 42% Deposits 51% Net trading assets 13% Loan assets <1 year 4% Cash and liquid assets 22% Commercial paper and certificates of deposit 11% Debt <1 year 2 5% 450 400 350 300 250 200 150 100 50 0 Funding sources Funded assets Total deposits $A221.5b 25% FROM MAR 25 Term funding raised 6 $A29.9b Since MAR 25 Funding sources Funded assets These charts represent Macquarie's funded balance sheets at the respective dates noted above. The funded balance sheet is a representation of Macquarie's funding requirements once certain items (e.g. derivative revaluation and self-funded trading assets) have been netted from the statement of financial position. The funded balance sheet is not a liquidity risk management tool, as it does not consider the granular liquidity profiling of all on and off-balance sheet components considered in both Macquarie's internal liquidity framework and the regulatory liquidity metrics. For details regarding reconciliation of the funded balance sheet to Macquarie's statutory balance sheet refer to slide 55. 1. Includes net other assets/liabilities, provisions, held for sale liabilities, current tax and deferred tax liabilities. 2. Debt < 1 year includes Subordinated debt ($A0.8b at 31 Mar 26), Secured funding, Bonds, Structured notes and Unsecured loans. 3. Debt > 1 year includes Secured funding, Bonds, Structured notes and Unsecured loans. 4. Loan assets > 1 year includes Debt investments. 5. Includes deferred tax assets. 6. Issuances cover a range of tenors, currencies and product types and are AUD equivalent based on FX rates at the time of issuance. Includes refinancing of loan facilities. Basel III Group capital position Strong capital position to support business activity and invest in new opportunities where expected risk-adjusted returns are attractive APRA Basel III Level 2 CET1 ratio: 12.8%; Harmonised Basel III Level 2 CET1 ratio: 17.5% 1 APRA Basel III Group capital surplus of $A9.3b 2,3 Group capital surplus $Ab 3.2 0.1 (0.5) (1.1) Based on 10.5% (minimum Tier 1 ratio + CCB + CCyB) 3 7.6 9.3 10.0 8.0 6.0 4.0 2.0 0.0 APRA Basel III at Sep 25 1H26 Interim dividend 2H26 P&L Business capital requirements incl. FX impacts Other movements ⁴ APRA Basel III at Mar 26 1. 'Harmonised' Basel III estimates are calculated in accordance with the updated BCBS Basel III framework, noting that MBL is not regulated by the BCBS therefore the ratios are indicative only. 2. The surplus reported includes provisions for internal capital buffers and differences between Level 1 and Level 2 requirements, including the $A500m operational capital overlay imposed by APRA. 3. The Group capital surplus is the amount of capital above APRA regulatory requirements. Bank Group regulatory requirements are calculated in accordance with Prudential Standard APS 110 Capital Adequacy (APS 110), at 10.5% of RWA. This includes the industry minimum Tier 1 requirement of 6.0%, capital conservation buffer (CCB) of 3.75% and a countercyclical capital buffer (CCyB). The CCyB of the Bank Group at Mar 26 is 0.79% (Sep 25: 0.75%), this is rounded to 0.75% for presentation purposes. The individual CCyB varies by jurisdiction and the Bank Group CCyB is calculated as a weighted average based on exposures in different jurisdictions at period end. 4. Includes movements in foreign currency translation reserve (FCTR), share-based payments reserve, and other movements. Business capital requirements FY26 business capital requirements 1 increase of $A2.7b excluding FX movements $Ab 33.4 33.3 0.5 0.7 0.7 0.0 $A33.4b 0.3 1.1 0.2 (0.2) $A33.3b (0.7) (0.5) $A0.9b increase over 2H26 4 (1.0) Broadly offset by FCTR 2 $A1.8b increase over 1H26 3 Broadly offset by FCTR 2 36.0 32.3 32.0 28.0 24.0 20.0 16.0 Mar 25 MAM BFS CGM MacCap Corp FX Sep 25 MAM BFS CGM MacCap Corp FX Mar 26 2H26 Key drivers MAM Reduction due to divestments, predominantly driven by completion of the sale of the North American and European public investments business, partially offset by net movements in co-investments and underwrites BFS Growth in home loans and business banking, partially offset by the disposal of a portion of the car loans portfolio CGM Increase in credit and market risk capital Macquarie Capital Predominantly driven by growth in Private Credit 1. Bank Group regulatory capital requirements are calculated in accordance with APS 110, at 10.5% of RWA. 2. The FCTR forms part of capital supply and broadly offsets FX movements in capital requirements. 3. Excluding FX. 1H26 movements do not include the internal transfer of on-balance sheet Green Investments assets to Corporate effective 1 Sep 25. 4. Excluding FX. 16 © Macquarie Group Limited 16 Strong regulatory ratios Bank Group Level 2 Ratios (Mar 26) 17.5% 12.8% 5.3% 4.7% 8.0% 20.0% 250.0% 200.0% 250.0% 116% 200.0% 16.0% 12.0% 8.0% 4.0% 6.0% 4.0% 2.0% 150.0% 100.0% 50.0% 150.0% 100.0% 50.0% 0.0% CET1 ratio 0.0% Leverage ratio 0.0% LCR LCR 1 0.0% NSFR 173% NSFR 2 Bank Group (Harmonised 3 ) Bank Group (APRA) APRA Basel lll minimum 4 1. Average LCR for Mar 26 quarter is based on an average of daily observations. APRA imposed a 25% add-on to the Net Cash Outflow (NCO) component of the LCR calculation, effective from 1 May 22. APRA has partially removed the add-on to the NCO component reducing it from 25% to 15% effective from 5 Feb 26. 2. APRA imposed a 1% decrease to the Available Stable Funding (ASF) component of the NSFR calculation, effective from 1 Apr 21. APRA has removed the adjustment applied to the ASF component effective from 5 Feb 26. 3. 'Harmonised' Basel III estimates are calculated in accordance with the updated BCBS Basel III framework, noting that MBL is not regulated by the BCBS therefore the ratios are indicative only. 4. The minimum requirement for CET1 ratio per APS 110 is 9.0% which includes the industry minimum CET1 requirement of 4.5%, CCB of 3.75% and a CCyB. The CCyB of the Bank Group at Mar 26 is 0.79%, which is rounded to 0.75% for presentation purposes. The minimum leverage ratio requirement is 3.5% per APS 110. The minimum requirement for LCR and NSFR is 100% per APS 210 Liquidity. Final dividend 2H26 Ordinary Dividend $A4.20 (35% franked) FROM $A3.90 (35% franked) IN 2H25 FY26 Ordinary Dividend $A7.00 (35% franked) FROM $A6.50 (35% franked) IN FY25 2H26 Record Date 19 May 26 2H26 Payment Date 02 Jul 26 DRP shares for the 2H26 dividend to be issued 1 Payout Ratio 2 50% 55% 2H26 FY26 Dividend policy remains 50-70% annual payout ratio The Board has resolved to issue shares to satisfy the DRP for the 2H26 dividend at a discount to the prevailing market price of 1.5%. The prevailing price will be determined in accordance with the DRP rules as the average of the daily volume weighted average price over ten business days from 25 May 26 to 5 Jun 26. 2. Payout ratio calculated as estimated number of eligible shares multiplied by dividend per share, divided by profit attributable to MGL shareholders. Income statement key drivers non-controlling interests Net interest and trading income of $A10,159m, up 14% on FY25 2H26 $Am 1H26 $Am FY26 $Am FY25 $Am Net interest and trading income 5,648 4,511 10,159 8,877 Fee and commission income 3,315 3,901 7,216 6,790 Share of net profits/(losses) from associates and joint ventures 101 (50) 51 167 Net credit impairment charges (461) (17) (478) (266) Net other impairment charges (218) (12) (230) (95) Net investment income 2,440 336 2,776 1,338 Other (charges)/income (39) 22 (17) 397 Net operating income 10,786 8,691 19,477 17,208 Employment expenses (4,261) (3,956) (8,217) (7,660) Brokerage, commission and fee expenses (595) (628) (1,223) (1,206) Other operating expenses (1,653) (1,655) (3,308) (3,274) 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 Growth in the average loan and BFS deposit portfolios, partially offset by lower margins reflecting changes in portfolio mix, and lending and deposit competition, in BFS Growth in the average private credit portfolio, in MacCap Fee and commission income of $A7,216m, up 6% on FY25 Higher performance fees, in MAM Higher advisory fee income, particularly in Americas and ANZ and higher brokerage fee income mainly due to increased market activity, particularly in Asia, in MacCap Partially offset by: Lower base fees following the sale of North American and European public investments business in 2H26, in MAM Credit and other impairment charges of $A708m, compared to $A361m in FY25 Uncertainty in the macroeconomic environment Portfolio growth and specific impairments for a small number of counterparties, in CGM A small number of underperforming investments, in MacCap Net investment and other income of $A2,759m, substantially up on FY25 Total operating expenses (6,509) (6,239) (12,748) (12,140) Operating profit before tax and non-controlling interests 4,277 2,452 6,729 5,068 Gain on sale from the divestment of the OnStream meters platform, in CGM Gains on the equity investment portfolio, primarily driven by exits in the infrastructure and technology sectors, in MacCap Gain on sale of the North American and European public investments business, net of associated transaction and separation costs, partially offset by Macquarie Rotorcraft in the prior year, in MAM Income tax expense (1,089) (771) (1,860) (1,326) Loss/(profit) attributable to 4 (26) (22) (27) Profit attributable to MGL shareholders 3,192 1,655 4,847 3,715 Partially offset by: Non-recurrence of asset realisations of Green Investments and higher impairments of Green Investments, in Corporate Non-recurrence of gains on sale of centrally held assets, in Corporate Total operating expenses of $A12,748m, up 5% on FY25, primarily driven by higher employment expenses due to performance-related profit share and wage inflation Income tax expense of $A1,860m. The effective tax rate of 27.6% was higher than 26.2% in FY25, mainly driven by the geographical composition and nature of earnings Macquarie Asset Management Increase primarily driven by higher performance fees 3,000 $Am 544 93 2,500 (67) (47) 2,049 2,000 1,500 30 Key drivers Higher base fees primarily due to positive net flows and market movements in the Australian public investments business and Private Markets fundraising and investments. This was partially offset by asset realisations in Private Markets funds and the spin off of the majority of the Core/Core Plus real estate business in FY25 Performance fees recognised across a broad 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 Higher net investment income primarily driven by the gain on sale of the North American and European public investments business in 2H26, net of associated transaction and separation costs, partially offset by the gain on sale of Macquarie Rotorcraft in FY25 500 Lower contribution from the divested North American and European public investments business following its sale effective 1 Dec 25 Base Fees 2,602 1,000 0 FY25 NPC Base fees 1 Performance fees Investment income Divested business P&L 2 Other 3 FY26 NPC Divested business P&L Other 1. Base fee movement excludes the impact of the divestment of the North American and European public investments business and is shown net of sub-advisory expenses reflected in Brokerage, commission and fee expenses. 2. Reflects base fees, other fee and commission income, other net operating income and total operating expenses of the divested North American and European public investments business. 3. Includes all other net profit contribution items for the retained MAM businesses. 21 © Macquarie Group Limited 21 MAM AUM movement MAM AUM increased by 8% (excluding the impact of the divested business 1 ) primarily driven by increased fund investments, net asset valuation changes and net flows 1,100 1,000 900 800 700 600 500 400 300 200 100 0 $Ab 941.0 42.4 34.6 12.4 19.3 (13.1) (5.9) (2.4) (28.5) (2.0) (1.3) 722.1 (274.4) Public Investments 306.0 Public Investments 552.0 Private Markets 416.1 Private Markets 389.0 Private Markets 27.1 Public Investments 28.4 31 Mar 25 Investments Divestments Assets no longer managed Equity to deploy movements 2 Net valuation changes 3 Private Markets FX Market movements Net flows Public Investments FX Other 4 Divested business 5 31 Mar 26 Divested business Equity to deploy movements Net valuation changes Other 1. Relates to the AUM transferred following the sale of the North American and European public investments business. 2. Includes equity committed to assets but not yet deployed. 3. Net valuation changes include net movements in enterprise valuations of portfolio assets and listed share price movements. 4. Includes annual distributions from Australian registered vehicles. 5. Divested business reflects North American and European public investments business AUM as at 31 Mar 25, adjusted only for sub-advisory AUM retained following completion of the sale. Approximately $A250b of AUM was transferred on completion. © Macquarie Group Limited 22 Banking and Financial Services Growth in the loan portfolio and BFS deposits $Am 1,800 Key drivers Higher Personal Banking income driven by 24% growth in average home loan volumes 5 and 28% growth in average deposit volumes 5 , partially offset by lower margins reflecting changes in portfolio mix and lending and deposit competition Lower Business Banking income driven by lower margins, partially offset by 6% growth in average 1,500 1,200 900 600 269 36 (6) (3) (55) (11) deposit volumes and 6% growth in average business lending volumes Higher Wealth income driven by 6% growth in average funds on platform Higher credit impairments driven by uncertainty in the macroeconomic outlook and volume growth, partially offset by changes in portfolio mix Higher operating expenses reflecting increased technology expenses mainly to support business growth and scalable operations 1,380 1,610 300 0 FY25 NPC Personal Banking ¹ Personal Banking 1 Business Banking 1 Wealth Management 1 Credit and other impairments ² Credit and other impairments 2 Expenses3 Expenses 3 Other Other 4 FY26 NPC Business Banking ¹ Wealth Management ¹ 1. Includes brokerage, commission and fee expenses. 2. Excludes associated credit and other impairment charges relating to car loans. 3. Excludes brokerage, commission and fee expenses and includes associated expenses relating to car loans. 4. Includes car loans run-off including associated credit and other impairment charges excluding expenses. 5. Calculations based on average volumes net of offset accounts. 23 © Macquarie Group Limited 23 Banking and Financial Services Strong growth across home loans, deposits, funds on platform and business banking loans $Ab $Ab 215.3 181.3 172.4 155.9 141.7 142.7 147.4 154.0 129.4 127.8 108.1 119.3 18.1 15.8 16.7 13.0 240 20 180 15 120 10 60 5 0 Home loans Home loans 1 0 Business banking loans BFS deposits Funds on platform BFS deposits 2 31 Mar 23 Funds on platform 31 Mar 25 31 Mar 26 31 Mar 24 Note: Data based on spot volumes at period end. 1. Home loan portfolio excludes offset accounts. 2. BFS deposits include home loan offset accounts. © Macquarie Group Limited 24 Commodities and Global Markets Strong underlying client business; well-positioned for upside opportunities $Am 5,000 1,022 Key drivers Commodities income of $A3,637m, up 20% on FY25 - Risk management income was higher, primarily driven by increased client hedging activity across Global Gas and Power businesses and Global Oil Lending and commodity financing income was higher, driven by increased client activity across energy and resources sectors 4,221 Inventory management and trading income was higher, driven by supply and demand imbalances in North American Gas and Power Commodities $A617m 4,000 209 2,000 318 90 3,000 132 141 84 (245) (359) and oil trading, partially offset by timing of income recognition on gas storage and transport contracts Financial Markets up on FY25, due to increased contributions from financing origination as well as continued strong client hedging activity in structured foreign exchange products Asset Finance income up on FY25, reflecting increased volumes across the meters, shipping and technology sectors Net investment and other income up on FY25, 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 Asse Finan FY26 NPC 2,829 1,000 Credit and other impairment charges up on FY25, 0 FY25 NPC Risk management Lending and financing Inventory management and trading Financial Markets Asset Finance 1 Brokerage and Commission 2 Investment and other income Credit and other impairments Other operating expenses FY26 NPC driven by portfolio growth, uncertainty in the macroeconomic environment and specific impairments for a small number of counterparties t Brokerage ce and commission Operating expenses up on FY25, mainly reflecting increased investment in the CGM platform including adjacent business opportunities and significant 1. Includes Asset Finance net interest and trading income and net operating lease income. 2. Includes fee and commission income and brokerage, commission and trading related expenses. © Macquarie Group Limited transaction-related costs 25 25 Strong underlying client business Majority of income derived from underlying client business Operating Income (excl. credit and other impairment charges) Underlying client business 1 Client numbers (excl. Asset Finance) FY22 FY23 FY24 FY25 FY26 Mar 22 Mar 23 Mar 24 Mar 25 Mar 26 Other Income Foreign exchange, interest rates and credit Equity derivatives and trading Brokerage and fee income Leasing (operating and finance) income Commodity lending and financing Commodity risk management Investment income Commodity inventory management and trading Commodities Financial Markets 45+ years of client partnerships evolving into niche activities in some markets, and scale in others Platform diversity drives earnings stability and de-risks the portfolio Dedicated specialist staff with deep sector knowledge and market insights Client-led business with deep longstanding client relationships: Diverse and growing client base Strong repeat client business with ~75% of client revenue generated from existing relationships Client relationships spread over a full spectrum of products and services Risk management is core Industry recognition in select markets and sectors is strong Included within underlying client business is a relatively small (~5%) amount of FX, IR, Credit and EDT trading activity not related to clients. Underlying client activity driving regulatory capital and trading revenues Regulatory capital 1 Group daily trading profit and loss 2 FY22 - FY26 Days Mar 22 Mar 23 Mar 24 Mar 25 Mar 26 Credit Market Operational Other 100 80 60 40 20 0 FY22 FY23 FY24 FY25 FY26 <-100 <-90 <-80 <-70 <-60 <-50 <-40 <-30 <-20 <-10 <0 >0 >10 >20 >30 >40 >50 >60 >70 >80 >90 >100 $Am Majority of capital relates to credit risk reflecting client focused business Risk management is core: built on 50+ years of accumulated experience in managing risk for our clients and our business Trading P&L distribution highlights consistent framework and robust approach to risk management Trading income largely derived from client franchise activities Includes the impact of APRA's "Unquestionably Strong" bank capital framework which came into effect from 1 Jan 23. Implementation of UQS resulted in an increase in CGM capital requirements, largely on account of higher regulatory buffers, along with RWA calculation changes. All figures are shown at the post-UQS ratio of 10.5% RWA. Prior periods have not been normalised for RWA calculation changes, including the implementation of the Standardised Measurement Approach to Operational Risk. 2. The daily profit and loss refers to results that are directly attributable to market-based activity from Macquarie's trading desks. Macquarie Capital Reflects higher investment-related income, higher fee and commission income and lower operating expenses 1,491 $Am Key drivers Higher investment-related income driven by: Gains on the equity investment portfolio driven by exits in the infrastructure and technology sectors, particularly in 2H26 Higher net interest income from the private credit portfolio, benefitting from $A2.5b 3 of growth in average drawn loan assets 1,600 1,200 800 400 0 Investment-related income $A247m 114 1,043 133 149 52 Partially offset by: Higher impairment charges driven by a small number of underperforming assets Higher share of net losses from associates and joint ventures, primarily driven by changes in the composition and performance of the investment portfolio Higher fee and commission income primarily driven by: Higher mergers and acquisitions fee income, particularly in the Americas and ANZ Higher brokerage income due to increased market activity, particularly in Asia Partially offset by: Investment-related income2 FY25 NPC Investment-related Net income on Fee and Operating expenses FY26 NPC income (excl. private private credit commission income lower employment expenses following the exit of credit) 1 portfolio 2 the debt capital markets business in the Americas Operating expenses were lower, mainly driven by Lower capital markets fee income following the exit of the debt capital markets business in the Americas Net income on private credit portfolio1 1. Includes realised gains and losses and revaluation of equity, debt and other investments, net interest and trading income (which represents the interest earned from debt investments and the funding costs associated with Macquarie Capital's balance sheet positions), share of net losses from associates and joint ventures, credit and other impairment (charges)/reversals, other (expenses)/income, internal management revenue and non-controlling interests and excludes net income on private credit portfolio. 2. Represents the interest earned, net of associated funding costs, net credit impairment charges (incl. origination ECL) and other gains and losses on the private credit portfolio. 3. Average volume calculation is based on balances converted at spot FX rates as at reporting period end. 28 © Macquarie Group Limited 28 Macquarie Capital Movement in capital Private Credit capital sector exposures 2 $Ab 6.6 (1.3) 6.2 (0.5) 8.0 7.0 6.0 5.0 4.0 3.0 2.0 1.0 7% 10% 26% 11% 7% 11% 12% 16% 1.4 Diversified Real Estate Technology Energy Infrastructure Infrastructure Digital Infrastructure Debt Software 3 Tech Enabled Software B2B Financial and Insurance Services Diversified Industries Education Healthcare Real Estate 0.0 31 Mar 25 Investments Realisations Other (incl. FX) 1 31 Mar 26 Other (incl. FX) 1. Other (incl. FX) includes accounting movements. 2. Exposures shown follow the economic capital adequacy methodology which is inclusive of off-balance sheet commitments. 3. Software predominantly relates to vertical software. Regulatory compliance and technology spend Investment has continued, albeit growth has remained well below historical rates, reflecting ongoing regulatory and compliance requirements and business investment in platforms and digitalisation to support growth Regulatory compliance increased by 6% on FY25 in response to evolving regulatory expectations and our investment to meet requirements Regulatory change and project spend decreased 5% on FY25, driven by the completion of several major initiatives and their transition to BAU, partially offset by ongoing investment in: Non-financial risk management programs and control uplift Transformation initiatives, including end-to-end capital and liquidity reporting Targeted remediation and governance initiatives as part of the strategic response to regulatory findings and licence conditions BAU regulatory compliance spend increased 12% on FY25, reflecting higher activity and costs across core compliance operations including nonfinancial risk, data management and regulatory reporting obligations Technology spend increased 5% on FY25 with continued business investment in platforms and digitalisation to support business growth, drive efficiencies, increase agility and improve customer experience Regulatory compliance spend 1 $Am 1,043 1,223 1,220 1,293 646 785 1,500 1,000 500 0 FY21 FY22 FY23 FY24 FY25 FY26 BAU regulatory compliance spend Regulatory change and project spend Technology spend 2 $Am 1,977 2,249 2,301 2,417 1,373 1,569 3,000 2,000 1,000 0 Excluding indirect costs. 2. Total technology spend across the Group includes spend related to regulatory compliance. It includes remuneration paid to staff in the Technology division and spend with technology vendors including market data, software licences and maintenance. FY21 FY22 FY23 FY24 FY25 FY26 Technology spend Balance sheet highlights Balance sheet remains solid and conservative: Term assets covered by term funding, stable deposits, hybrids, subordinated debt and equity Short-term wholesale funding covered by cash, liquids and other short-term assets Total deposits continuing to grow, up 25% to $A221.5b as at Mar 26 from $A177.7b as at Mar 25 $A29.9b 1 of term funding raised during FY26: $A17.3b of senior unsecured debt $A4.4b of unsecured loan facilities $A4.1b of subordinated unsecured debt $A2.3b of securitisation issuances $A1.1b of covered bond issuance; and $A0.7b of secured facilities 1. Issuances cover a range of tenors, currencies and product types and are AUD equivalent based on FX rates at the time of issuance. Includes refinancing of loan facilities. Diversified issuance strategy 4.1 years Weighted Average Maturity 3 Term funding as at 31 Mar 26 - diversified by currency, tenor and type Currency 1 JPY 1% OTH 1% USD 38% EUR 13% GBP 3% CHF 1% Tenor 2 Type 1-2yrs 13% 2-3yrs 11% Equity 28% Securitisations >1yr 7% Other secured funding 6% Securitisation 7% AUD 43% >5yrs 48% 3-4yrs 14% 4-5yrs 7% Unsecured loans 14% Hybrids 3% Subordinated debt 8% Structured notes 1% Bonds 33% Term Issuance and Maturity Profile $Ab 80 60 40 20 0 Issuances 4 Maturities 6 Mar 26: Weighted average maturity 4.1 years 3 FY225 FY235 FY22 5 FY23 FY24 FY25 FY26 <1yr 1-2yrs 2-3yrs 3-4yrs 4-5yrs >5yrs Senior unsecured debt Secured debt Hybrids and subordinated debt Equity 1. Equity has been allocated to the AUD currency category. 2. Securitisations have been presented on a behavioural basis and represent funding expected to mature in > 1 year. 3. WAM represents weighted average term to maturity of term funding maturing beyond one year excluding deposits, equity and securitisations. 4. Issuances include refinancing of loan facilities and are converted to AUD at the 31 Mar 26 spot rate. 5. Includes RBA TFF of $A9.53b. 6. Maturities are shown as at 31 Mar 26. Diversified deposit base Macquarie has seen continued success in its long-term strategy of diversifying funding sources by growing its deposit base Of approximately 2.3 million BFS clients, ~2.1 million are depositors $Ab 240 200 160 120 80 40 0 Non-Financial Businesses 56.0 67.1 84.0 101.5 134.5 148.4 177.7 8% 2% 3% 13% Type 1 48% 26% 221.5 Savings Offsets Non-Interest Bearing Composition of deposits 3% 21% Counterparty 3 49% 27% Transaction Term Deposits Other 2 Households Superannuation 4 Non-Financial Businesses 5 Institutions & Other Superannuation Other Mar 19 Mar 20 Mar 21 Mar 22 Mar 23 Mar 24 Mar 25 Mar 26 1 Mar 26 Mar 24 1. Total deposits include BFS deposits of $A215.3b and $A6.2b of corporate/wholesale deposits, including those taken by MBE as at 31 Mar 26. 2. Includes corporate/wholesale deposits. 3. As at 31 Mar 26 for Total Residents Deposits on Australian books per APRA Monthly Authorised Deposit-Taking Institution Statistics (MADIS). 4. Predominantly Self-Managed Super Funds. 5. Predominantly Private Enterprises and Trusts. Loan portfolio - funded balance sheet Operating Mar 26 Mar 25 Group Category $Ab $Ab Description Home loans 183.0 143.0 Loans secured by mortgages over residential property Business banking 18.1 16.6 Loan portfolio secured largely by working capital, business cash flows and real property BFS Car loans 0.1 2.6 Secured by motor vehicles Other 0.3 0.2 Includes credit cards Total BFS 1 201.5 162.4 Asset finance 5.0 4.3 Predominantly secured by underlying financed assets Resources and commodities 4.8 3.7 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 12.8 10.5 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 Other 3.4 0.4 Predominantly short-term transaction funding Total CGM 26.0 18.9 Other 1.3 0.2 Secured by underlying financial assets Total MAM 1.3 0.2 CGM MAM Corporate and other lending 24.7 24.1 MacCap 2 Diversified corporate and real estate lending portfolio, predominantly consisting of loans which are senior, secured, covenanted and with a hold to maturity horizon 205.6 253.5 Total loan assets per funded balance sheet 3 24.1 24.7 Total MacCap 1. Per the funded balance sheet, the figure for home loans of $A183.0b differs from the figures disclosed on slides 11 and slide 24 of $A181.3b. The balances on slides 11 and 24 exclude capitalised costs, provisions, deferred income, accrued interest and establishment fees. 2. Includes loans secured by mortgages over residential property. 3. Total loan assets per the funded balance sheet includes self-securitised assets. Equity investments 1 of $A13.0b Operating Group Carrying Value Carrying Value Category Mar 26 $Ab Mar 25 $Ab Description MAM Macquarie Asset Management Private Markets-managed funds Transport, industrial, real estate, infrastructure and technology Investments acquired to seed new Private Markets-managed products and mandates Includes investments in regional infrastructure and core infrastructure, real estate, core renewable energy and energy transition funds 3.0 2.6 2.0 1.9 Includes investments in a portfolio of aircraft as part of the aviation leasing business and opportunistic real estate 0.7 0.9 Includes investments acquired to seed new initiatives in the infrastructure and adjacencies sector Total MAM 5.7 5.4 MacCap Includes Enterprise Software, Technology-Enabled Services, FinTech, Government Services, Regulatory and Compliance technology, AI and Other Transition Growth & Technology and Venture Capital 2.1 1.8 Infrastructure & Energy Capital 1.7 2.1 Includes Digital Infrastructure, Social & Economic Infrastructure and Energy Principal Finance 1.6 1.9 Includes investments in Services, Technology and Telecommunications companies and Real Estate Total MacCap 5.4 5.8 Corporate, BFS and CGM Green Energy 2 0.7 1.3 Reflecting assessment of carrying value during the year and disposals of certain assets Corporate and Other 1.2 0.9 Includes investments in corporations in the financial services industry, securities exchanges, investment companies and fund managers 13.4 13.0 Total equity investments 2.2 1.9 Total Other Equity investments includes interests in associates and joint ventures including those classified as held for sale, subsidiaries and certain other assets held for investment purposes and financial investment. 2. Reflects the impairment of Green Investments of $A379m and the divestment of a solar platform. During the year, net expenditure in Green Investment platforms decreased 47% to $A303m. Regulatory update Australia APRA has finalised or is in the process of implementing changes to a number of prudential standards. Macquarie notes there have been the following key updates: On 4 Dec 25, APRA released final changes to the ADI prudential standards to phase out hybrid instruments 1 as eligible capital, including for Non-Operating Holding Companies, along with consequential amendments to the prudential standards following the consultation paper released on 8 Jul 25 2 . The changes to the ADI framework are effective from 1 Jan 27, with transitional arrangements in place for instruments outstanding until 1 Jan 32. Macquarie has been working with APRA on a remediation plan that strengthens MBL's governance, culture, structure and remuneration to ensure full and ongoing compliance with prudential standards and management of MBL-specific risks. These will continue to be delivered through 2026 and beyond, creating a positive impact through improved systems, frameworks, processes, and strengthening risk culture. On 5 Feb 26, APRA announced it had reduced liquidity add-on requirements imposed on MBL in 2021 and 2022. APRA has partially removed the add-on to the net cash outflow component of MBL's Liquidity Coverage Ratio (LCR), reducing the add-on from 25 per cent to 15 per cent. APRA has also removed MBL's Net Stable Funding Ratio (NSFR) add-on of 1 per cent that was applied to the available stable funding component of the NSFR calculation. There has been no change to the operational capital overlay of $A500m which MBL was required by APRA to hold from 2021. The changes are effective 5 Feb 26. Macquarie has been working with ASIC and notes the following updates: On 13 Mar 26, the Supreme Court of NSW ordered Macquarie Securities (Australia) Limited (MSAL) to pay an agreed civil penalty of $A35m, following an agreement reached between MSAL and ASIC, arising from inaccurate short sale transaction reporting. On 20 Mar 26, the Federal Court handed down judgment following an agreement reached between ASIC and Macquarie Investment Management Limited (MIML), in relation to not placing the Shield Master Fund on a watchlist for further monitoring. ASIC did not seek a pecuniary penalty against MIML in this matter. MBL continues to execute the remediation plan associated with additional conditions imposed on MBL's Australian Financial Services Licence (AFSL) following compliance failures in Macquarie's futures dealing business and its over-the-counter (OTC) derivatives trade reporting. The most recent interim compliance report was released by ASIC on 30 Oct 25. Germany The ongoing, industry-wide investigation in Germany relating to dividend trading continues. Over a dozen criminal trials related to cum-ex have been or are being prosecuted against individuals in German courts and there have been convictions. Under German law, companies cannot be criminally prosecuted, but they can be added as ancillary parties to the trials of certain individuals. Ancillary parties may be subject to confiscation orders requiring the disgorgement of profits. Macquarie has provided for German dividend trading matters. As previously noted, in total, the German authorities have designated as suspects approximately 100 current and former Macquarie staff, most of whom are no longer at Macquarie and there are a number of civil claims against Macquarie. Macquarie has been responding to requests for information about its historical activities and has seen increased activity in relation to former and current Macquarie employees as the industry-wide investigation continues, notably the prosecution and potential trial of a former employee from mid-2026. 1. As at 31 Mar 26, MBL had $A2.4b of AT1 capital on issue and MGL had $A3.9b of eligible hybrid capital on issue. 2. 'APRA consults on amendments to phase out AT1 Capital'; 8 Jul 25. Basel III Bank Group Common Equity Tier 1 (CET1) Ratio APRA Basel III Level 2 CET1 ratio at Mar 26: 12.8% Harmonised Basel III Level 2 CET1 ratio at Mar 26: 17.5% 1 Bank Group Level 2 CET1 ratio 4.7% 1.5% (0.9%) (0.2%) APRA CET1 minimum requirement 2 12.8% 12.4% (4.9%) 17.5% 17.3% 20.0% 18.0% 16.0% 14.0% 12.0% 17.3% 17.5% 10.0% 8.0% 6.0% 4.0% 2.0% 0.0% Harmonised Basel III at Sep 25 APRA Basel III 'super equivalence' APRA Basel III at Sep 25 2H26 P&L Business capital requirements incl. FX impacts Other movements ³ APRA Basel III at Mar 26 APRA Basel III 'super equivalence' ⁴ Harmonised Basel III at Mar 26 1. 'Harmonised' Basel III estimates are calculated in accordance with the updated BCBS Basel III framework, noting that MBL is not regulated by the BCBS therefore the ratios are indicative only. 2. The minimum requirement for the CET1 ratio per APS 110 is 9.0% which includes the industry minimum CET1 requirement of 4.5%, CCB of 3.75% and a CCyB. The CCyB of the Bank Group at Mar 26 is 0.79% (Sep 25: 0.75%), this is rounded to 0.75% for presentation purposes. 3. Includes movements in FCTR and other movements. 4. APRA Basel III 'super equivalence' includes the impact of changes in capital requirements in areas where APRA differs from the updated BCBS Basel III framework, including: residential mortgages LGD adjustment 1.6%; wholesale LGD adjustment 0.9%; IRB scaling factor adjustment 0.7%; capitalised expenses 0.6%; DTAs 0.4%; equity investments 0.4%; and other movements 0.1%. Strong liquidity position maintained 173% average LCR for Mar 26 quarter, based on daily observations 1,2 - Well above regulatory minimum Reflects longstanding conservative approach to liquidity management MBL LCR position 1,2 MBL HQLA composition 1 $Ab 55.3 49.5 49.1 32.0 28.3 28.4 60 LCR 175% LCR 173% LCR 173% Mar 26 14% 30% 56% 40 Central bank balances Australian government and semi-government bonds 20 Non-AUD HQLA 0 Mar 25 Qtr Sep 25 Qtr Mar 26 Qtr Net Cash outflows High-Quality Liquid Assets Net Cash Outflows Represents quarterly average balances. 2. APRA imposed a 25% add-on to the Net Cash Outflow (NCO) component of the LCR calculation, effective from 1 May 22. APRA has partially removed the add-on to the NCO component reducing it from 25% to 15% effective from 5 Feb 26. Capital management update Dividend Reinvestment Plan (DRP) On 17 Dec 25, the DRP in respect of the 1H26 dividend was satisfied through the allocation of ordinary shares at a price of $A195.34 per share 1 . The shares allocated under the DRP were acquired on-market The Board has resolved to issue shares to satisfy the 2H26 DRP and that a 1.5% discount to the prevailing market price 2 will apply. The shares for the 2H26 DRP may be purchased on-market in part or in full if issuing becomes impractical or inadvisable On-market share buyback As at 7 May 26, a total of $A1,013m of ordinary shares had been acquired on-market at an average price of $A189.80 per share Given significant business growth over recent periods, together with the prevailing market conditions, Macquarie has not purchased any shares under the buyback since the Board-approved extension announced on 7 Nov 25 There is currently no expectation of further share purchases under the extended buyback and so the Board has resolved to conclude the on-market share buyback Macquarie Group Employee Retained Equity Plan (MEREP) The Board has resolved to purchase shares 3 for the FY26 MEREP requirements of approximately $A741m 4 . The shares for MEREP may be issued in part or in full if purchasing becomes impractical or inadvisable The buying period for MEREP will commence on 18 May 26 and is expected to be completed by 30 Jun 26 5 MQG shares sold by staff between 18 May 26 and 15 Jun 26 6 are expected to be acquired by the MEREP Trustee to meet the MEREP buying requirements Shares sold by staff during this window are to be acquired off-market at the daily Volume Weighted Average Price (VWAP) 7 , reducing the number of shares acquired on-market to meet the MEREP requirements The DRP price was determined in accordance with the DRP Rules, being the arithmetic average of the daily volume weighted average price of all Macquarie Group shares sold through a Normal Trade on the ASX automated trading system over the eight trading days from 24 Nov 25 to 3 Dec 25. Determined in accordance with the DRP rules as the average of the daily volume weighted average price over the ten business days from 25 May 26 to 5 Jun 26. 3. Shares may be purchased on-market and off-market. 4. Final volumes may be subject to change. 5. Actual buying may be completed sooner or later. On-market buying for the MEREP will be suspended during the DRP pricing period (25 May 26 to 5 Jun 26). 6. This date may be subject to change. 7. Trades will be crossed off-market by Macquarie Securities (Australia) Limited and reported to ASX and Cboe Australia accordingly. Attention : This is an excerpt of the original content. To continue reading it, access the original document here .

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