SYDNEY, May 4, 2026, 00:01 AEST
- Macquarie Bank posted a sharp jump in household mortgages for March, tacking on A$3.6 billion—the biggest increase for any Australian deposit-taking lender that month.
- That surge lands just days ahead of parent Macquarie Group’s full-year results due May 8.
- Whether loan growth actually delivers bigger earnings still comes down to higher rates and those new lending caps—those are the main hurdles.
Macquarie Group Ltd’s banking division posted the steepest rise in Australian household mortgages for March, putting a fresh spotlight on the investment bank’s retail lending segment ahead of full-year results due this week.
Macquarie Bank’s mortgage portfolio climbed A$3.6 billion in March, up 2.1% to A$173.7 billion, according to Canstar, which referenced data from the Australian Prudential Regulation Authority. That lift pushed Macquarie into fifth place among Australia’s biggest home lenders—and marked it as the fastest-growing authorised deposit-taking institution, or ADI, a term covering banks and other deposit-holding lenders.
Timing is key here. With Macquarie Group set to release full-year results for the period ending March 31 on Friday, May 8, investors will soon find out if Banking and Financial Services growth is enough to counter headwinds in other parts of the business.
Australia’s mortgage balances climbed to A$2.46 trillion in March, a 0.6% rise from February, despite two rate hikes by the Reserve Bank of Australia already this year. The RBA’s cash rate target remains at 4.10%, with the next decision set for 2:30 p.m. on May 5.
This shift pushes Macquarie into even tighter competition with the major banks. As of March, CBA sat on A$624.5 billion in home loans, Westpac reported A$509.0 billion, and NAB had A$347.0 billion, per Canstar’s look at APRA data. Macquarie’s mortgage portfolio climbed 27.1% year-on-year.
Macquarie is chipping away at the major banks’ grip on mortgages at a rapid pace, according to Canstar Data Insights Director Sally Tindall. Even with rising rates, she notes, the total loan book keeps growing. Banks, however, have dialled back on aggressive cashback offers and hefty discounts for new borrowers.
Macquarie has relied heavily on brokers and digital processing to boost its share in home loans. Back in March, Mortgage Professional Australia noted that the bank’s mortgage book jumped to A$173.7 billion from A$36.1 billion since March 2019. That’s pushed its market share up to 7.1%, a sharp rise from just 2.1%.
But here’s the wrinkle: In February, Macquarie flagged that its Banking and Financial Services arm delivered just a slight uptick from the prior year. Loan and deposit balances grew, sure, but thinner margins—thanks to stiffer competition and a shift in the portfolio mix—ended up taking some of the shine off.
Regulation is a headwind, too. APRA’s debt-to-income cap, restricting the proportion of new mortgages extended at six times a borrower’s income or above, came into force on Feb. 1. The measure targets housing risk as property values and lending ramped up.
Rate risk is still on the table. According to a Reuters poll from May 1, most economists are betting the RBA will hike the cash rate to 4.35% on May 5. That would pile more pressure on borrowers facing repayments, and could cool both refinancing activity and appetite from investors.
Macquarie shares finished Friday at A$238.19 on the ASX, gaining 1.32%. The Australian market was shut when this was published. The stock is hovering just under its April 2026 high, so if Friday’s numbers reveal mortgage growth squeezing margins, there’s not much buffer for investors.
