Macquarie Group Ltd (ASX: MQG) shares fell 5% on Tuesday despite forecasting a 10% jump in full-year profit.
Macquarie is Australia’s largest investment bank, worth an estimated $34 billion according to Google Finance. It has operations stretching from investment research and financing to mortgages and banking.
This morning, the bank filed a trading/operational update with the ASX. Macquarie CEO, Nicholas Moore, said trading conditions we “satisfactory” during the December quarter.
Macquarie’s annuity-style operations, which includes Macquarie’s asset management, financing, and banking businesses, reported a slightly stronger profit result thanks to better performance fees and growth in the banking and financial services businesses.
Capital markets operations, including Macquarie Capital and Macquarie’s commodities and markets businesses, produced a result slightly below last year, due to the timing of agreements.
“Given substantial performance fees were recognised in the half-year ended 30 September 2017 (1H18), Macquarie expects the half-year ended 31 March 2018 (2H18) net profit contribution from operating groups to be down on 1H18 and broadly in line with the half-year ended 31 March 2017 (2H17),” Macquarie noted.
Despite the slower-than-expected quarter for its capital markets businesses, Macquarie is confident that it will achieve profit growth of 10% over the full year ending 31 March 2018.
And while longer-term profits are difficult to forecast accurately, Moore said the bank is well-positioned to achieve success for shareholders.
“Macquarie remains well positioned to deliver superior performance in the medium-term due to our deep expertise in major markets, strength in diversity and ability to adapt the portfolio mix to changing market conditions, the ongoing benefits of continued cost initiatives, a strong and conservative balance sheet and a proven risk management framework and culture,” Mr Moore concluded.
Macquarie shares were trading 5.3% lower at $97.97 on Tuesday.
Want To Join An Investor Club Newsletter?
You can join Rask’s FREE investor’s club newsletter today for all of the latest analysis and education on investing. Join today – it doesn’t cost a thing.
Keep Reading
- Key Highlights From Magellan’s HY Report
- ASX 200 Follows Dow Jones Lower
- The Best Investors Are Dead or Female
- Is Bitcoin Going To Zero?
Disclaimer: This article contains general information only. It is no substitute for licenced financial advice and should not be relied upon. By using our website you agree to our Disclaimer & Terms of Use and Privacy Policy.
