Macquarie CEO expects tech investments to bring profits and reduce staff.

Macquarie Group's CEO, Shemara Wikramanayake, expects further gains from a years-long tech push in its banking and financial services division. The unit saw an 11% surge in net profit contribution, with deposits growing and expenses decreasing due to lower headcount. The division has become Australia's fifth-largest home loan lender, positioning itself as a digital-first alternative to traditional banks. Macquarie's headcount has dropped 7% to under 20,000 people since its peak in late 2023.

Macquarie Group Limited (ASX: MQG; ADR: MQBKY) reported a significant 11% increase in net profit contribution for its Banking and Financial Services (BFS) division, driven by robust growth in deposits and reduced expenses due to a streamlined workforce. This division has become a key player in Australia's home loan market, ranking fifth among major lenders.

The BFS division's performance was bolstered by an increase in the loan portfolio and deposits, while expenses were kept in check through lower average headcount. According to the latest financial results, the division's net profit contribution rose to A$1,380 million in FY25, up 11% from A$1,241 million in FY24 [2].

Macquarie's CEO, Shemara Wikramanayake, highlighted the division's resilience against a backdrop of ongoing market and economic uncertainty. She noted that the division's growth in deposits and lower expenses reflect the company's strategic focus on digital transformation and operational efficiency [1].

The company's overall headcount has decreased by 7% since its peak in late 2023, reflecting a shift towards a more streamlined and efficient organizational structure. As of 31 March 2025, Macquarie employed 19,735 people, down from 21,226 in 2024 [2].

Macquarie's BFS division has positioned itself as a digital-first alternative to traditional banks, leveraging technology to improve customer experience and operational efficiency. This strategic focus on technology has been a key driver of the division's growth and profitability.

Macquarie's strong performance in the BFS division comes at a time when the broader Australian banking sector is facing intense mortgage competition and a shift towards lower-margin deposit products. Despite these challenges, Macquarie's BFS division has demonstrated resilience and growth, positioning itself as a key player in the Australian home loan market.

References:
[1] Reuters. "Australia's Macquarie posts 5.5% rise in annual profit as asset banking arms shine." 2025. Available at: https://www.marketscreener.com/quote/stock/MACQUARIE-GROUP-LIMITED-6491460/news/Australia-s-Macquarie-posts-5-5-rise-in-annual-profit-as-asset-banking-arms-shine-49884868/
[2] Macquarie Group. "Macquarie Group FY25 Result Announcement." 2025. Available at: https://www.macquarie.com/au/en/about/news/2025/macquarie-group-fy25-result-announcement.html