UPDATE 1-Australia’s Macquarie Group raises FY profit forecast

1 BUSINESS

Business News - Opportunities - Reviews

 

 

FILE PHOTO: The logo of Australia’s biggest investment bank Macquarie Group Ltd adorns the main entrance to their Sydney office headquarters in Australia, October 28, 2016. REUTERS/David Gray/File Photo

(Reuters) – Australia’s largest investment bank Macquarie Group on Tuesday said it expects a 15 percent rise in profit for the full year ended March, fueled by higher revenue from its market facing businesses.

Expectations were heightened back in November when the company raised its profit guidance from zero to 10 percent growth in the year to March 2019, setting the stage for new Chief Executive Officer Shemara Wikramanayake, who took the reins in December from Nicholas Moore.

The Sydney-based company said a jump in value of advisory activities by its unit Macquarie Capital and strong performance by its commodities platform will contribute to its full year net profit.

“Macquarie remains well positioned to deliver superior performance in the medium term,” said Wikramanayake, in her first results announcement as chief executive officer.

The company also said profit contribution of its core “annuity-style businesses” in the third quarter was slightly higher than a year ago, but was down for the nine months to December because of lower performance fees in its asset management business.

The bank’s asset management business, its biggest-earning unit, saw its assets under management fall 2 percent to A$551 billion ($389.06 billion) as at Dec. 31, compared to three months earlier.

Macquarie’s common equity tier 1 capital ratio as at Dec. 31 was 10.8 percent, up from 10.4 percent at Sept. 30.

Reporting by Nikhil Kurian Nainan in Bengaluru; Editing by David Gregorio and Grant McCool

1 BUSINESS

Business News - Opportunities - Reviews

 

 

Leave a Reply