Macquarie affirms guidance for softer full year
Macquarie Group has told investors it continues to expect profits for this financial year will fall short of 2019's record of almost $3 billion, after a December quarter that it viewed as "satisfactory."
The Sydney-based financial group on Tuesday held an operational briefing, at which chief executive Shemara Wikramanayake briefed the market on recent conditions, and the company reaffirmed its previous guidance for profit to be "slightly down" on last year's result.
Macquarie chief executive Shemara Wikramanayake said the December quarter had been "satisfactory" for the group.Credit:Peter Braig
“Trading conditions were satisfactory across the Group in the quarter ended 31 December 2019,” Ms Wikramanayake said in a statement.
Macquarie, which will report its full-year results in May, said its "annuity-style' businesses — those in asset management and commercial banking — made a higher profit contribution in the December quarter than during the same three months last year.
Its funds management arm had $587.5 billion in assets under management, a 5 per cent increase on the September quarter, while its domestic banking business posted solid growth in its balance sheet. The banking and financial services division notched up 11 per cent in its $48.6 billion mortgage portfolio, alongside 3 per cent growth in deposits, to $57.7 billion.
Profits in the more volatile "markets-facing" businesses, however, were "significantly down" in the quarter, Macquarie said, mainly due to much lower investment-related income. The company said this was in part because of a particularly strong quarter in the prior corresponding period, in which the group realised some large assets.
Shares in Macquarie have had a strong run in the past year, rising by about 20 per cent to $146.34.
Ms Wikramanayake said that over the medium term, Macquarie remained "well positioned to deliver superior performance" due to its deep expertise, its business and geographic and business diversity, and an ongoing focus on saving costs and efficiency.
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