Money Finance News Macquarie Group on track for $3 billion profit

Macquarie Group on track for $3 billion profit

Macquarie is often regarded as the fifth pillar in Australia's banking system.
Macquarie has had another big profit result. AAP
Share
Tweet Share Reddit Pin Email

Macquarie Group expects annual profit to soar 15 per cent to nearly $3 billion for what should be a fourth straight record result.

The wealth management and financial services group said on Tuesday that a strong performance from Macquarie Capital, which advised on deals including Wesfarmers’ demerger of Coles, had contributed to “significant realisations” over the three months to December.

Macquarie’s bottom line improved 15.34 per cent last year to $2.557 billion.

Another 15 per cent increase in FY19 would drive full-year profit to $2.94 billion, a more than 80 per cent improvement over five years.

Shemara Wikramanayake – who took over as chief executive in November – greeted Tuesday’s trading update in language indistinguishable from that used at successive profit announcements by her predecessor, Nicholas Moore.

“Macquarie remains well positioned to deliver superior performance in the medium term,” Ms Wikramanayake said.

“This is due to our deep expertise in major markets, strength in diversity and ability to adapt the portfolio mix to changing market conditions, as well as the ongoing benefits of continued cost initiatives, a strong and conservative balance sheet and a proven risk management framework and culture.”

Macquarie shares rose $1.57, or 1.3 per cent, to $123.55 by 1046 AEDT.

The stock has more than doubled in value over the past three years and has risen about 30 per cent since April 2017, compared to the broader financial sector’s 16 per cent decline.

-AAP