Macquarie’s better outlook
Macquarie Group has pointed to the possibility of a 10 per cent improvement in results amid signs of improving market conditions, according to an operational briefing delivered to the Australian Securities Exchange (ASX) today.
The briefing reinforced that the company's annuity-style businesses — Macquarie Funds, Banking and Financial Services and Corporate and Asset Finance — were the drivers for growth.
Macquarie chief executive Nicholas Moore said it was these businesses which were performing well, with the combined third quarter 2013 net profit contribution up on the prior corresponding period and the prior period ended 30 September, last year.
This compared with Macquarie's capital markets-facing businesses — Fixed Income, Currencies and Commodities, Macquarie Securities and Macquarie Capital — which faced "subdued market conditions".
Drilling down on the various divisions, the company's update pointed to a 5 per cent increase in the Australian mortgage portfolio, the acquisition of 8.3 per cent of Yellow Brick Road, and the agreement to acquire Pacific Premium Funding.
It said that if the acquisition was approved by the Australian Competition and Consumer Commission (ACCC), Macquarie Premium Funding would become the second largest premium funder in Australia.
Discussing the outlook, Moore said that subject to market conditions, the financial year 2013 profit contribution from the operating groups was expected to be materially up on last year.
"Whilst market conditions remain uncertain, we currently expect Macquarie's result to be up approximately 10 per cent on financial year 2012, with the probability of a stronger result, should improved market conditions persist," he said.
Recommended for you
In this week’s episode of Relative Return Unplugged, AMP chief economist Shane Oliver joins the show to unravel the web of tariffs that US President Donald Trump launched on trading partners and take a look at the way global economies are likely to be impacted.
In this episode of Relative Return, host Laura Dew is joined by Andrew Lockhart, managing partner at Metrics Credit Partners, to discuss the attraction of real estate debt and why it can be a compelling option for portfolio diversification.
In this week’s episode of Relative Return Unplugged, AMP’s chief economist, Shane Oliver, joins us to break down Labor’s budget, focusing on its re-election strategy and cost-of-living support, and cautioning about the long-term impact of structural deficits, increased government spending, and potential risks to productivity growth.
In this episode of Relative Return, host Laura Dew chats with Mark Barnes, head of investment research, and Catherine Yoshimoto, director of product management, from FTSE Russell about markets in Donald Trump's second presidency and how US small caps are faring compared to their large-caps counterpart.
