Macquarie profits beat expectations in FY17

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Australia’s Macquarie Group reported a record full year profit that came in ahead of expectations as lending and capital markets revenue rose.

Consolidated net profit at the infrastructure and natural resources-focused investment bank rose to A$2.2bn ($1.6bn) in the financial year ended March, up 7.5 per cent from 2016 and coming in ahead of a mean forecast of A$2.1bn from analysts surveyed by Bloomberg.

That brought earnings per share to A$6.576, up just over 38 cents from a year prior. The group set a final dividend of A$2.8o per share, up from $2.40 at the end of 2016. It forecast net profit contribution from operating groups for the 2018 financial year “broadly in line” with that of 2017.

Net profit contribution from its annuity-style business rose 4 per cent year on year to A$3.3bn, contributing approximately 70 per cent to profits. The remaining 30 per cent came from the company’s capital markets-facing business, where net profit rose 12 per cent to A$1.5bn.

Net operating income rose 2 per cent to A$10.4bn, with revenue from Macquarie’s lending segment up 3.5 per cent year on year at A$5.7bn and that from its capital markets segment rising 8.8 per cent to A$2.6bn.

Macquarie’s shares closed up 0.4 per cent in Sydney on Thursday at A$91.92.

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