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Macquarie Eyes Banking Roots Amidst Shifting Growth
4 Aug
Summary
- Macquarie's new CEO emerged from domestic banking, not global divisions.
- Digital deposits and lending challenge Australia's Big Four banks.
- Macquarie Group, valued at nearly A$100bn, may be leaning into banking.
Macquarie Bank Limited, originally established in 1985, is exhibiting renewed emphasis on its banking foundation. The company, now operating as Macquarie Group and valued at nearly A$100bn, has derived most of its income from asset management, M&A advisory, and commodities trading.
However, the recent appointment of Greg Ward as CEO, effective November, signifies a strategic focus on its banking and financial services division. Ward, a 30-year veteran, successfully grew the domestic banking arm, particularly through digital-only deposits and lending, becoming a competitive force against Australia's Big Four banks.
This strategic direction is noted as different from previous leadership transitions, which saw CEOs appointed from asset management or investment banking. Insiders dismiss notions of a retreat to the home market, highlighting Ward's extensive international finance experience.
While its non-banking divisions have seen substantial growth, with net profit increases between 27% and 49%, the banking division's 17% growth is also significant. Future opportunities for Macquarie to maintain its growth are anticipated to emerge from diverse sectors, potentially including energy trading and renewable projects.
