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Macquarie flags record $2.4 billion profit

Stuart Condie  |  06 Feb 2018Text size  Decrease  Increase  |  
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SYDNEY - [AAP] Macquarie Group (ASX: MQG) expects to lift full-year profit by about 10 per cent on last year's record $2.2 billion.

Macquarie on Tuesday said trading conditions had been satisfactory in the December quarter, with the net profit contribution from annuity-style businesses rising following strong performance fees from Macquarie Asset Management and growth in banking and financial services.

Nonetheless, second-half performance fees are likely to lag those from the first half and be broadly in line with the prior corresponding period.

The improved contribution from annuity-style businesses countered a weaker contribution from Macquarie's capital markets-facing businesses.

A 10 per cent rise would give Macquarie a full-year profit of $2.42 billion, although the firm has comfortably beaten its own guidance in each of the past two years.

Chief executive Nicholas Moore greeted the update in typically understated terms.

"Macquarie remains well positioned to deliver superior performance in the medium term due to our deep expertise in major markets, strength in diversity and ability to adapt the portfolio mix to changing market conditions, the ongoing benefits of continued cost initiatives, a strong and conservative balance sheet and a proven risk-management framework and culture," Mr Moore said.

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At 1144 AEDT, Macquarie shares were down 5.4 per cent at $97.78 on what looked likely to be the ASX's worst trading day since at least September 2016.

 

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© 2021 Australian Associated Press Pty Limited (AAP) or its Licensors. This is the Morningstar service with content provided by AAP where indicated. AAP reserves all rights, including copyright, in services provided by it. The information in the service is for personal use only, does not constitute financial product advice (whether general or personal) and may not be re-written, copied, re-sold or re-distributed, framed, linked or otherwise used whether for compensation of any kind or not, without the prior written permission of AAP. You should seek advice from a professional financial adviser before making decision to acquire or dispose of a financial product.

This service is published for general information purposes only without assuming a duty of care. AAP is not in the business of providing financial product advice (whether personal or general advice), and gives no warranty, guarantee or other representation about the accuracy of the information or images contained in this service. AAP is not liable for errors, omissions in, delays or interruptions to or cessation of the services through negligence or otherwise. The globe symbol and "AAP" are registered trademarks.

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