Ahead of its 2024 annual general meeting held in Sydney, Macquarie Group managing director and CEO Shemara Wickramanayake said the bank’s operating group performance was in line with expectations in 1Q25.

In its annuity-style businesses, Macquarie Asset Management (MAM) and Banking and Financial Services (BFS), combined NPAT contributions were, similarly, on par with those seen in 1Q24.

According to the group, this was due to volume growth, lower operating costs and lower credit impairment charges at BFS, although this was offset by margin compression at BFS and a performance fee schedule at MAM.

MAM also posted assets under management of $915 billion as of June 30, 2024, down 2% from March 31, 2024.

In more positive news for Macquarie's annuities business, the BFS division's $145.3 billion deposits for the quarter were up 2% year-on-year.

Conversely, contributions from Macquarie's market-oriented businesses, which include Commodities and Global Markets (CGM) and Macquarie Capital, declined in 1Q25. The group said this was mainly due to the asset realization schedule at Macquarie Capital, but was partially offset by continued platform contributions at CGM.

Macquarie Capital also said it saw lower investment-related income in the latest quarter due to higher funding costs and lead times.

“Commodity performance rose on the pcp, largely driven by improved trading activity in the North American gas, power and emissions markets and strong performance in the agriculture and resources sectors. "Financial markets benefited from continued strong client activity in sectors involving currency and interest rate risk," Macquarie said on Thursday.

The quarterly update comes after the bank reported a 32% drop in profit for the year ending March 31, 2023, reporting net profit after tax attributable to common shareholders of $3.52 billion.

Speaking on his latest full-year results, Macquarie Group chairman Glen Stevens said on Thursday that the group's performance reflected the diversity of the business.

"Volatility in global energy markets, which previously increased customer demand for services and provided trading opportunities, has given way to much calmer conditions and therefore lower profits for commodity businesses and global markets," Stevens said.

“For most of the year, less active financial markets also constrained other areas of the group's business, particularly at Macquarie Asset Management. However, as long-term growth investments paid off, Banking & Financial Services and Macquarie Capital generated higher earnings than last year.”

In November, Macquarie's board also approved a market share buyback of up to $2 billion, providing additional flexibility to manage the group's capital position.

On Thursday, Macquarie confirmed that as of July 24, common shares totaling $908 million had been acquired in the market at an average price of $188.45 per share.