Changes are happening - please bear with us while we update our site.

Changes are happening - please bear with us while we update our site. Click here to give us your advice and feedback.

Macquarie (ASX:MQG) Gives AGM And Q1 Update, Is The Share Price A Buy?

Macquarie Group Ltd (ASX:MQG) is holding its annual general meeting (AGM) today and has also updated the market about its first quarter performance. 

Macquarie Group Ltd (ASX: MQG) is holding its annual general meeting (AGM) for FY19 today and has also updated the market about its first quarter performance.

Macquarie Group is Australia’s largest investment bank with operations spread throughout North America, Europe, Middle East, Asia and Australia. Unlike a traditional ‘retail’ bank, like most investment banks Macquarie makes a large chunk of its profit by operating in the investment markets and managing ‘assets’ for individuals and organisations. As of 2018, Macquarie had reported a profit for 49 years in a row.

Macquarie’s FY20 First Quarter Trading Update

Macquarie Group said that its operating groups were performing in line with expectations.

What that translates to is that in the first quarter of FY20 the operating group net profit contribution is broadly in line with the first quarter of FY19 (the prior corresponding period), although slightly down on the fourth quarter of FY19.

Macquarie also reported on its financial position. The investment bank said it comfortably exceeded minimum requirements with group capital surplus of $5 billion and a bank CET1 ratio of 12%, a ‘leverage ratio’ of 5.4%, a liquidity coverage ratio (LCR) of 166% and a net stable funding ratio (NSFR) of 111%. Having even more capital than required is a good position.

However, despite the solid update, Macquarie still expects the FY20 result to be down slightly on the FY19 result.

Macquarie Group CEO and Managing Director Shemara Wikramanayake said before the AGM:

Macquarie’s annuity-style businesses were down on the prior corresponding period. Specifically, and compared with the prior corresponding period, Macquarie Asset Management (MAM) was down mainly due to the timing of performance fees and higher operating expenses following recent platform acquisitions; Corporate and Asset Finance (CAF) was down to reduced loan volumes and realisations in CAF Principal Finance; and Banking & Financial Services (BFS) was broadly in line.”

Is Macquarie A Buy?

I think Macquarie is the best bank to own on the ASX, however I don’t think there’s a rush to buy its shares if the profit isn’t expected to grow this year.

It might be better to wait for the next economic dip to buy Macquarie shares and instead look at the reliable businesses in the free report below instead.

[ls_content_block id=”14945″ para=”paragraphs”]

[ls_content_block id=”18380″ para=”paragraphs”]

$50,000 per year in passive income from shares? Yes, please!

With interest rates UP, now could be one of the best times to start earning passive income from a portfolio. Imagine earning 4%, 5% — or more — in dividend passive income from the best shares, LICs, or ETFs… it’s like magic.

So how do the best investors do it?

Chief Investment Officer Owen Rask has just released his brand new passive income report. Owen has outlined 10 of his favourite ETFs and shares to watch, his rules for passive income investing, why he would buy ETFs before LICs and more.

You can INSTANTLY access Owen’s report for FREE by CLICKING HERE NOW and creating a 100% FREE Rask Account.

(Psst. By creating a free Rask account, you’ll also get access to 15+ online courses, 1,000+ podcasts, invites to events, a weekly value investing newsletter and more!)

Unsubscribe anytime. Read our TermsFinancial Services GuidePrivacy Policy. We’ll never sell your email address. Our company is Australian owned.

Information warning: The information on this website is published by The Rask Group Pty Ltd (ABN: 36 622 810 995) is limited to factual information or (at most) general financial advice only. That means, the information and advice does not take into account your objectives, financial situation or needs. It is not specific to you, your needs, goals or objectives. Because of that, you should consider if the advice is appropriate to you and your needs, before acting on the information. If you don’t know what your needs are, you should consult a trusted and licensed financial adviser who can provide you with personal financial product advice. In addition, you should obtain and read the product disclosure statement (PDS) before making a decision to acquire a financial product. Please read our Terms and Conditions and Financial Services Guide before using this website. The Rask Group Pty Ltd is a Corporate Authorised Representative (#1280930) of AFSL #383169.

Skip to content