Macquarie Group has released a trading update for the third quarter of the 2023 financial year (3Q23), revealing its net profit after tax (NPAT) over the first three quarters of FY23 was “slightly up” on the previous corresponding period.
Underpinning the improvement was a strong 3Q23 from Macquarie’s markets-facing businesses — Commodities and Global Markets (CGM) and Macquarie Capital.
According to the group, the combined NPAT contribution of CGM and Macquarie Capital (56 per cent) over 3Q23 was “substantially up” on 3Q22.
This was reportedly driven by “exceptionally strong results” in commodities markets, including gas and power contributions across all regions in CGM.
This, however, was partially offset by a “lower level of realisations and lower fee and commission income” in Macquarie Capital.
Conversely, the NPAT contribution of Macquarie’s annuity-style businesses (44 per cent) — Macquarie Asset Management (MAM) and Banking and Financial Services (BFS) — was “substantially down” on 3Q22.
Weakness in the annuity-style businesses over 3Q23 has been attributed to “large green energy sector asset realisations” in MAM over the previous corresponding period.
But the group’s BFS business has continued to report growth, with total deposits of $125 billion as at the close of 3Q23, up 36.4 per cent from $91.6 billion in 3Q22; and the loan portfolio growing to $125.7 billion, up 20.5 per cent from $104.3 billion.
This was partially offset by a 3.2 per cent decline in funds on platform over the same period, from $120.9 billion to $117 billion.
Reflecting on the group’s overall performance, Macquarie Group managing director and CEO Shemara Wikramanayake lauded the company’s diversified business model.
“Varied market conditions have resulted in a good quarter for the group reflecting the diversity of our activities,” Ms Wikramanayake said.
