Sydney: Australia’s Macquarie Group said on Friday (3 November) its first-half profit was 39% below pre-pandemic levels, its lowest first-half profit in three years, due to rising costs and weakness in its asset management and commodity trading divisions. reported.
Macquarie has already lowered its earnings forecast twice since announcing its record 2023 results in May, but Citi’s A$1.42 billion (RM4.33 billion) profit for the half year ended September 30 was compiled by Macquarie. This was significantly lower than the consensus estimate of A$1.77 billion.
This was the biggest decline in profits in more than a decade, amid a challenging environment for corporate trading and commodity price volatility being lower than a year ago.
Macquarie said in a statement that the financial conglomerate remains cautious and in a conservative position.
Despite the weak performance, the company’s board approved a share buyback of up to A$2 billion and announced an interim dividend of A$2.55 per share.
“We feel we have more capital than we need and it would be prudent to return it to shareholders,” Macquarie Chief Executive Shemala Wickramanayake said in a video message on the company’s website. Ta.
The company’s A$892 billion asset management division led the decline, with profits falling 71% to A$407 million, about half of what analysts had expected. Macquarie blamed the decline on the timing of green asset sales and increased expenses.
Profits in the Heavy Commodities and Global Markets division fell 31% to A$1.4 billion as some normality returned to the energy market after the disruption caused by Russia’s invasion of Ukraine last year.
The company said fees at its investment banking arm, Macquarie Capital, were similar to the same period last year. Profits fell 28% to A$430 million.
Banking and Financial Services, home to Australia’s fifth-largest retail mortgage business, had a rare bright spot in profits, rising 10% to A$638 million on loan growth and improved margins. became.
Macquarie reported an increase in operating costs across all four divisions. – Reuters
