Macquarie sees earnings rise but misses profit consensus

Macquarie Group Ltd's CEO stated that the company is "well-positioned to deliver superior performance in the medium term," despite reporting mixed results for the first half of the year and announcing a reduced dividend.

Macquarie sees earnings rise but misses profit consensus

The Sydney-based banking group reported an attributable profit of AUD 1.61 billion (USD 1.06 billion) for the six months ending September 30, representing a 14% increase from AUD 1.42 billion, although it fell short of the market consensus estimate of AUD 1.73 billion. Net operating income increased by 3.9% to AUD 8.22 billion, up from USD 7.91 billion. The Commodities & Global Markets division generated AUD 1.32 billion, a decrease of about 5% year-over-year, primarily due to lower risk management income. Macquarie attributed this decline to reduced client hedging activity, which was a result of "subdued volatility across energy markets." Additionally, Macquarie Capital's profit dropped 14% to AUD 371 million. In contrast, Macquarie Asset Management showed stronger performance, with net profit rising 68% to AUD 684 million. Macquarie declared an interim dividend of AUD 2.60 per share, down from AUD 3.85 the previous year.

CEO's comment

CEO Shemara Wikramanayake highlighted the company's "improved performance," which she said was supported by enhanced outcomes in Macquarie Asset Management and ongoing advancements in the digitalisation of Banking and Financial Services, reflecting the benefits of its diverse business model. On Friday, Macquarie also announced a 12-month extension of its ongoing AUD 2 billion buyback program. As of Thursday, it had repurchased AUD 1.01 billion of stock at an average price of AUD 189.80 per share.