Australia’s Macquarie Group Profit Surges 30%
Synopsis
Macquarie has beaten analyst expectations after reporting a 30 per cent jump in annual profit, driven by strong performance in its commodities and global markets division. The Australian financial giant posted net profit of A$4.85 billion for the year to March, while raising its final dividend to A$4.20 a share. Earnings from commodities and global markets surged 49 per cent as heightened volatility linked to the Iran conflict boosted trading activity. Despite a fall in assets under management following major business sales, the result reinforced Macquarie’s strength during periods of global market uncertainty.
Australian financial giant Macquarie has revealed a better-than-expected 30 per cent increase in annual profit, boosted by commodities and regional markets trading amid extreme volatility due to the Iran conflict.
Key Highlights
- Macquarie full-year profit up 30% to A$4.85bn
- Result topped analyst forecasts of A$4.35B
- Global markets and commodities profit up 49%
- Final dividend raised to A$4.20 a share
- Asset under management, fell 23% to A$722.1bn
Macquarie sees 30 per cent jump in profits, beats expectations
Australian investment bank Macquarie Group MQT.AX on Thursday posted a record annual profit as global markets stimulated trading activity in its commodities and global markets division. The Australian financial behemoth recorded a 30% increase in net profit, from A$3.73 billion for the year to March 2022 to A$4.85 billion at that time and well ahead of the A$4.35 billion analysts were anticipating. This beat was supported by robust trading revenues as investors responded to continuing tensions arising from the Iran conflict.
Major Earnings Boost Delivered by Commodities Division
Macquarie’s commodities and global markets business was the biggest contributor, with profit jumping 49% to A$4.22 billion (£2.08 billion). Investors watched the unit in anticipation that volatility would boost earnings above estimates. The company, also known in Australia as “The Millionaires’ Factory,” hiked its final dividend to A$4.20 a share from A$3.90 last year.
Funds Under Management Decline When Assets are Sold
Macquarie said its assets under management fell 23% to A$722.1 billion after it sold Martin Currie, its OnStream smart-meter portfolio and AirFinance leasing unit. But net of those divestments, assets under management were still up 8% for the year. The result also supports Macquarie’s strong record of being able to take advantage in times when the markets are shaky and volatile, something that is powerful for Australian investors.
FAQs
- How much profit did Macquarie report?
Macquarie reported an A$4.85 billion annual net profit.
- How much did profit increase?
Full-year profit was 30 per cent higher than the previous year.
- Which division experienced the most robust growth?
And in the commodities and global markets division, profit jumped 49 per cent on growth from Macquarie.
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