Only ASX 200 Bank Outperforms with Capital Growth

Macquarie Takes the Crown: Only ASX 200 Bank Outperforms with Capital Growth

On May 28, 2024, interesting data emerged from the ASX Investor Day in Sydney. Investment strategist Marc Jocum of ETF provider Global X shared a surprising fact about ASX 200 bank shares: only one bank delivered more capital growth than dividends over the past decade.

Dividend Payouts vs. Capital Growth

For many investors, Australian bank stocks are known for their consistent dividend payouts. These payments are a portion of a company’s profits distributed to shareholders. But what about capital growth? This refers to the increase in a share price over time.

The Macquarie Exception

Traditionally, ASX 200 bank shares haven’t been known for significant capital growth compared to their dividend yields. However, Jocum’s data revealed a clear exception: Macquarie Group Ltd (ASX: MQG).

Macquarie’s Impressive Numbers

Looking at the past ten years, ending March 31, 2024, here’s how Macquarie stacked up:

  • Share Price Increase: A whopping 244.7% increase in the Macquarie share price.
  • Dividend Returns: Respectable dividend returns of 230.8%.
  • Total Return: Combining both capital growth and dividends, Macquarie delivered a total return of 475.6% over the decade.

The Rest of the Pack

While Macquarie thrived, the other ASX 200 bank shares primarily relied on dividends for investor returns. In fact, some even experienced negative capital growth during the ten-year period.

Why Macquarie Stands Out

Macquarie Group operates differently than traditional banks. It focuses on diversified financial services, including investment banking, asset management, and infrastructure financing. This broader range of operations may have contributed to its impressive capital growth.

Important Considerations

While Macquarie’s performance is noteworthy, past results are not a guarantee of future success. Here are some key points to remember:

  • Market Fluctuations: The stock market experiences ups and downs. Investors should be prepared for potential drops in share price.
  • Industry Trends: The financial services industry is constantly evolving. Regulatory changes and economic conditions can impact Macquarie’s future performance.
  • Investment Strategy: Macquarie’s success story doesn’t mean it’s the right fit for every investor. Consider your risk tolerance and overall investment goals before making any decisions.

Beyond Macquarie: Options for Dividend Seekers

Despite Macquarie’s capital growth, many investors still prioritize consistent dividend payouts. The good news is that other ASX 200 banks still offer attractive dividend yields. Here are some examples:

  • Commonwealth Bank of Australia (CBA): While capital growth was lower, CBA offered a solid 150.7% in dividends over the past decade.
  • National Australia Bank (NAB): NAB also delivered good dividend returns, providing a total of 138.5% over the ten-year period.

The Final Takeaway

The data from the ASX Investor Day highlights an interesting anomaly within the ASX 200 banking sector. While Macquarie stands out for its capital growth, other banks remain strong options for dividend-focused investors. Remember, diversification and a long-term investment strategy are crucial for building a healthy portfolio. Always conduct your own research and consider seeking professional financial advice before making investment decisions.


The information in this article is solely the author’s opinion and does not constitute investment advice; it is provided solely for educational purposes. By using this, you acknowledge that the information does not constitute investment or financial advice. Before making any investment decisions, do your own research and consult with financial advisors.

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