“Macquarie (MQG) reported a result that was 9% above Bloomberg consensus,” Raymond said.
“Its dividend of $3.5 is also greater than the consensus of $3.
“Macquarie hasn’t provided its outlook for the financial year 2023, which is understandable given the uncertainty in the global environment.
“The company is holding strong capital, with excess capital now at $12.2 billion, compared to $10.7 billion in financial year 2022.
“MQG has four key divisions: Asset Management, Bank, Commodity Trading and Macquarie Capital
“Three out of four divisions delivered 15% to 20% NPAT growth, with only Macquarie Capital declining 12% due to a weak operating environment.
“Macquarie Asset Management (first half 2023 NPAT of A$1.4 billion) was up 22% on the pcp. This increase reflected higher investment-related income, primarily due to the timing of asset realisations in the green energy sector. This was partially offset by a loss of income from infrastructure asset sold in prior year.
“Banking and Financial Services (first half 2023 NPAT of A$580m) was up 20% on the pcp, reflecting strong home loan growth, improved margins and lower credit impairments.
“Commodities and Global Markets (first half 2023 NPAT of $1.9 billion) was up 15% on the pcp, reflecting strong risk management activity across the commodities platform, and increased hedging activity in financial products.
“Finally, Macquarie Capital (first half 2023 NPAT of A$595 million) was down 12% on the pcp, reflecting weakening market conditions due to volatile market conditions,” Michael concluded.
Macquarie (MQG)
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