Macquarie shares rise after better-than-expected FY profit
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More news: Shares in Macquarie Group were up 3.5% to $202.68 in early trading after the diversified financial giant reported a 5% lift in full-year profit to $3.72 billion, topping analyst estimates.
The results among its were mixed across the business, with contribution from its top profit generating commodities and global markets division down 12%, but strong performance in its asset management and banking segments, where profits rose 33% and 11% respectively
Macquarie Group posts FY profit of $3.72b, tops estimate
The news: Diversified financial giant Macquarie Group has reported a 5% lift in full-year profit on the back of improved performance in its asset management and financial services businesses.
The numbers: Net profit for the year to 31 March was $3.72 billion, ahead of $3.70 billion expected by analysts polled by Visible Alpha. Revenue for the year was up 1.9% to $17.2 billion, and the company will pay a final dividend of $3.90 a share, up from $3.85 per share a year ago.
The context: The group said among its annuity-style businesses, profit at Macquarie Asset Management (MAM) jumped 33% to $1.6 billion, driven by higher performance fees and the gain on sale of its helicopter leasing business. Profit at Banking and Financial Services (BFS) was up 11% to $1.38 billion, reflecting growth in lending and deposits, and a lower average headcount.
However, contribution from its top profit-generating arm, the Commodities and Global Markets (CGM) division was down 12% on the previous year to $3.21 billion, mainly due to weaker performance in commodities risk management, as client hedging activity decreased.
The group said it continues to maintain a cautious stance, with a conservative approach to capital, funding and liquidity. It pointed to global economic conditions, inflation and interest rates, geopolitical events and potential tax or regulatory changes as factors that may influence short-term outlook.
The source: ASX
