Macquarie Group has stuck to its profit 2019-20 guidance, confirming its May advice that it still sees the March 31, 2020, full-year result “slightly down” on 2018-19.
CEO Shemara Wikramanayake said in a short statement before yesterday’s AGM in Sydney that said Macquarie’s annuity-style businesses were down on the prior corresponding period because of the timing of performance fees and higher operating expenses.
As well, Macquarie’s corporate and asset finance business suffered reduced loan volumes and realisations.
“Macquarie’s markets-facing businesses were up on the prior corresponding period primarily due to the strong performance of the commodities platform,” she said, partially offset by lower investment-related income in Macquarie Capital.
She said that “Macquarie’s operating groups were performing in line with expectations, with their contribution in the first quarter of the 2020 financial year (1Q20) broadly in line with the first quarter of the 2019 financial year (1Q19) and slightly down on the prior quarter (4Q19).”
Ms Wikramanayake said: “Macquarie remains well-positioned to deliver superior performance in the medium term due to its deep expertise in major markets, strength in diversity and ability to adapt its portfolio mix to changing market conditions, ongoing program to identify cost-saving initiatives and efficiency, strong and conservative balance sheet and proven risk management framework and culture.”
Macquarie said in May at the time of the release of the results that guidance for the 2019-20 year will be slightly lower than the2018-19’s $2.98 billion.
If that happens it would end Macquarie’s run of six record profits in a row.
Macquarie shares rose 0.7% to $130.29.
