By Stuart Condie

SYDNEY--Macquarie Group's fiscal first-quarter profit fell from a year earlier as the Australian financial giant's asset-management and commodities businesses more than offset strong growth at its bank.

Macquarie, which also said its long-serving chief financial officer would step down at the end of 2025, on Thursday reported a lower net profit contribution for the three months through June. It didn't quantify the decline.

The group blamed the timing of investment-related income for asset management's lower profit contribution. It said its commodities and global markets unit was affected by lower net interest and trading income in North American gas and power.

Macquarie Asset Management had 945.8 billion Australian dollars in assets under management at June 30, up 1% from the end of its most recent full fiscal year.

It raised A$3.5 billion in new private-markets equity, invested A$7.0 billion, and divested A$500 million. It had A$23.5 billion ready to deploy at the start of the second quarter, but said it would continue its cautious approach amid uncertain global economic conditions.

"Disciplined capital allocation is key and Macquarie is willing not only to give priority to the most promising opportunities, but also to divest businesses that are no longer central to our strategy or whose prospects could be improved under alternative ownership," Chair Glenn Stevens said.

Net profit contribution from banking and financial services rose on volume growth in both loans and deposits.

Macquarie, which has been aggressively growing its share of Australia's lucrative mortgage market, said that home loans rose by 6% over the three months through June to A$150.2 billion. Deposits grew by 4% to A$178.9 billion, and business loans rose 4% to A$17.3 billion.

CFO Alex Harvey will step down Dec. 31 to be replaced by his deputy, Frank Kwok. Harvey, who will retire in mid 2026 following an extended handover process, has been with Macquarie for 28 years, eight of them as CFO.

Kwok, who is also a 28-year veteran of Australia's so-called Millionaires' Factory, held senior roles including in asset management prior to becoming deputy CFO last year.

Write to Stuart Condie at stuart.condie@wsj.com

(END) Dow Jones Newswires

July 23, 2025 19:37 ET (23:37 GMT)

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