Macquarie Group has pointed to the possibility of a 10 per cent improvement in results amid signs of improving market conditions, according to an operational briefing delivered to the Australian Securities Exchange (ASX) today.
The briefing reinforced that the company's annuity-style businesses — Macquarie Funds, Banking and Financial Services and Corporate and Asset Finance — were the drivers for growth.
Macquarie chief executive Nicholas Moore said it was these businesses which were performing well, with the combined third quarter 2013 net profit contribution up on the prior corresponding period and the prior period ended 30 September, last year.
This compared with Macquarie's capital markets-facing businesses — Fixed Income, Currencies and Commodities, Macquarie Securities and Macquarie Capital — which faced "subdued market conditions".
Drilling down on the various divisions, the company's update pointed to a 5 per cent increase in the Australian mortgage portfolio, the acquisition of 8.3 per cent of Yellow Brick Road, and the agreement to acquire Pacific Premium Funding.
It said that if the acquisition was approved by the Australian Competition and Consumer Commission (ACCC), Macquarie Premium Funding would become the second largest premium funder in Australia.
Discussing the outlook, Moore said that subject to market conditions, the financial year 2013 profit contribution from the operating groups was expected to be materially up on last year.
"Whilst market conditions remain uncertain, we currently expect Macquarie's result to be up approximately 10 per cent on financial year 2012, with the probability of a stronger result, should improved market conditions persist," he said.
