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Macquarie Group to report another full-year profit amid acquisition speculation

Macquarie Group to report another full-year profit amid acquisition speculation

Eliot Hastie
— 1 minute read

The Macquarie Group has announced it is on track to report another full-year profit in its final year under the helm of Nicholas Moore.

In its interim financial report, the Macquarie Group foreshadowed a 10 per cent increase on its last financial year result.

The group’s net profit after tax attributable to shareholders ending September 30 was $1.31 billion, a 5 per cent increase on the prior corresponding period.

Macquarie Group’s outgoing chief executive Nicholas Moore said the first half of the financial year should highlight the strength of the brand.

“1H19 highlighted the strength of Macquarie’s global platform, the diversity of its business mix and its ongoing ability to adapt to changing conditions.”

The combined net profit contribution of Macquarie’s annuity-style businesses - Macquarie Asset Management, Corporate and Asset Finance, and Banking and Finance Services - contributed $1.495 billion for this half, up 10 per cent on the last financial year.

Those businesses account for 60 per cent of the group’s performance with the capital market facing business delivering a combined net profit contribution of $1.106 billion, up 6 per cent on end of last financial year.

Currently, a rumour is circulating in finance circles that Macquarie is weighing up an offer to acquire AMP, whose shares are at a record low.

News of the reported tilt sent AMP shares up 7 per cent to $2.64 on Thursday, but neither party has publicly commented on the speculation.

The group is set to undergo a transition at the end of the month as the chief executive changes for the first time in a decade from Mr Moore to Shemara Wikramanayake.

Macquarie announced Ms Wikramanayake as its new chief executive in July. Previously, she had been the head of the Macquarie Asset Management business.

Ms Wikramanayake said that the group would keep delivering strong performance in the market throughout the rest of the year.

"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," she said.

The group also announced that effective November 5, Jillian Broadbent AO would join the Macquarie Group and Macquarie Bank boards as an independent director.

 

Macquarie Group to report another full-year profit amid acquisition speculation
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