Macquarie Groups affirms profit outlook
(28 July 2016 – Australia) Macquarie Group reconfirmed its earnings expectations for the current financial year, saying they would match the record performance of 2016.
The Sydney-based bank, which earns around 70 percent of its income overseas, said its operating group's performance in the first quarter, ending in June was up on the previous period, but down on the same time in 2015.
"Macquarie's annuity-style businesses, which represent more than 70 percent of the Groups' performance, continued to perform well," said the bank's managing director and chief executive officer, Nicholas Moore.
The lender’s capital markets business had mixed fortunes following underwhelming market conditions, though its commodities and financial markets unit saw stronger activity.
Macquarie lifted annual net profit and dividends to a record in the year-ended March 2016 to A$2.06 billion.
The commodities and financial markets unit, part of its market-facing division contributes less than 30 percent of the Group's net profit and had been a bright spot for the bank.
Macquarie is known for its consistently strong earnings and focus on annuity-style businesses which have been replaced by investment banking to contribute the lion's share of earnings.
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