Macquarie Group’s earnings beat forecasts
Macquarie Group has posted a 15 per cent rise in net profit to over $2.5 billion for the fiscal year to 31 March, on the back of strong performances from its asset management and banking services divisions.
The investment bank’s “annuity-style” businesses - Macquarie Asset Management, Corporate and Asset Finance, and Banking and Financial Services - made a combined net profit contribution of around $3.4 billion, up 6 per cent on fiscal 2017.
Assets under management (AUM) stood at $496.7 billion as at March 2018, up 3 per cent from March 2017 and largely attributable to positive market movements and favourable currency movements, the bank said.
The capital markets-facing businesses – Commodities and Global Markets, and Macquarie Capital – made a combined profit contribution of $1.6 billion, up 11 per cent on the prior year.
Macquarie announced a partially franked final dividend of $3.20 a share, which brought full-year dividends to a 45 per cent-franked $5.25, up from $4.70 a share in fiscal 2017.
The result, which beat analysts’ expectations, highlighted the strength of the company’s global platform, the diversity of its business mix, and its ability to adapt to changing market conditions and client needs, chief executive Nicholas Moore said.
“The group remains well positioned, with a strong and diverse global platform and deep expertise across a range of products, markets and asset classes,” he said.
“This is built on the foundation of a strong balance sheet, surplus capital, a robust liquidity and funding position, and a conservative approach to risk management, which is embedded across all operating groups.”
Moore did not provide any specific earnings guidance, but said he expected Macquarie’s earnings in fiscal 2019 to be “broadly in line with FY18,” subject to the usual caveats such as market conditions, foreign exchange impacts, and regulatory changes.
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