- Macquarie Group (MQG) says improved overall market conditions have resulted in a record quarter for the group
- The company says its financial position exceeds regulatory requirements with a group capital surplus of $11.5 billion at the end of December
- Net profit contribution increased across the company’s market facing businesses, which was attributed largely to higher principal income in Macquarie Capital
- Annuity-style businesses saw a lower net profit contribution due to the timing of performance fees and investment-related income
- MQG shares 3.78 per cent higher at $201.35 each
Improved overall market conditions have underpinned a record quarter for Macquarie Group (MQG) in the December 2021 quarter.
The company said its financial position comfortably exceeds regulatory requirements, with a group capital surplus of $11.5 billion at the end of December, up from $8.4 billion at the end of the preceding three-month period.
Net profit contribution across the company’s market-facing businesses comprising the Commodities and Global Markets and Macquarie Capital divisions soared to 55 per cent.
The company said the increase in contribution was primarily due to higher principal income posted by Macquarie Capital including strong investment realisations in the infrastructure, business services and technology sectors.
Macquarie Capital completed 126 transactions globally during the quarter, valued at $105 million.
The net profit contribution of the group’s annuity-style businesses – Macquarie Asset Management (MAM) and Banking and Financial Services (BFS) – fell to 45 per cent, mainly due to the timing of performance fees and investment-related income.
“We continue to maintain a cautious stance, with a conservative approach to capital, funding and liquidity that positions us well to respond to the current environment,” Managing Director and CEO Shemara Wikramanayake said.
“More broadly, we remain well positioned over the medium term, based on our deep expertise in major markets, a diversified and adaptable mix of strong businesses, an ongoing program to identify cost saving initiatives and efficiency, a strong and conservative balance sheet and a proven risk management framework and culture.”
MQG shares were up 3.78 per cent at $201.35 each at 2:00 pm AEDT.