First Read Macquarie Group 1Q 27 Trading Update and AGM

Research evidence excerpt

First Read Macquarie Group 1Q 27 Trading Update and AGM

02 13.77

citing market conditions and customer activity, likely referring to the impacts of the 03/29E 14.08 14.60

budget to investor mortgage growth (here). CGM. Earnings contribution increased pcp

John S. Storey, CFA

largely from American Gas and Power trading activity (US cold snap Jan-26). Financial

Analyst

markets contribution was flat and asset finance was up from higher activity pcp. john.storey@ubs.com

MacCap. Higher investment related income was partially offset from lower advisory +61-2-9324 3864

fees, despite high profile deal involvement (SpaceX IPO). Private credit has grown ~9%

Nicholas Sobolev, CFA

pcp while the equity portfolio has decreased (divestment of Prime Data Centers).

nicholas.sobolev@ubs.com

Valuation: Neutral rated with a $250/share price target +61-2-9324 3026

Macquarie ended their FY26 with a record result and the current CEO/MD, Shemara

Wikramanayake, leaves the business at high point and in a strong position with solid

underlying operational momentum behind it. Investors continue to have confidence in

the management team given their proven history of effective performance, capital

allocation, and execution. Macquarie's reliance on CGM for ~40% of group earnings,

which is subject to volatility, along with a dependence on asset sales in MAM and

MacCap, has decreased earnings visibility but the diversification of their business has

proven itself over the past 6-months. The overall structural trends and themes continue

to provide support. Currently, MQG is trading at about 19.2x P/E, compared to a long-

term average of around 14.0x.

Highlights (A$m) 03/24 03/25 03/26 03/27E 03/28E 03/29E 03/30E 03/31E

Revenues 16,567 17,402 20,134 19,223 20,214 21,317 22,653 23,993