Macquarie Group posts 107% NPAT growth in 1H22

Improved trading conditions has seen Macquarie Group’s net profit to grow to $2,043 million in 1H22, representing a 107% growth on 1H21, the group said in the announcement made to the Australian Securities Exchange (ASX). 

The increase in net profit, which was helped by a significant increase in net profit contribution from four operating groups compared with a period of 1H21 affected by the COVID-19 pandemic, was also in line with 2H21. 

The group also announced that it was seeking to raise $1.5 billion through a non-underwritten institutional placement, followed by a non-underwritten share purchase plan, to provide “additional flexibility to invest in new opportunities where the expected risk-adjusted returns were attractive, while maintaining an appropriate capital surplus”. 

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During 1H22, assets under management stood at $737 billion, as of 30 September, 2021, representing a growth of 31% from 31 March, 2021. 

Net operating income was $7,804 million was up 41% on 1H21 and up 8% on 2H21, with an international income accounting for 72% of Macquarie’s total income. 

Following this, Macquarie Capital delivered a net profit contribution of $468 million compared to a loss of $189 million in 1H21, thanks to higher fee and commission income which was driven by mergers and acquisitions and debt capital markets income and partially offset by lower equity capital markets and brokerage income following a strong 1H21. 

The board announced a 1H22 interim ordinary dividend of $2.72 per share, which was up on the 1H21 interim ordinary dividend of $1.35 per share. 

“The first half saw a significant increase in net profit contribution from all four operating groups compared with 1H21, a period which was affected by the COVID-19 pandemic,” Macquarie Group’s managing director and chief executive, Shemara Wikramanayake, said. 

“Today’s result is consistent with a strong 2H21 and reflects improved trading conditions our diverse platform. 

“Macquarie remains well-positioned to deliver superior performance in the medium term. This is due to our deep expertise in major markets, strength in business and geographic diversity and ability to adapt the portfolio mix to changing market conditions, an ongoing program to identify cost savings initiatives and efficiency, a strong and conservative balance sheet, and a proven risk management framework and culture.” 

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