MQG +3.89%: a record quarter for Australia’s largest Investment Bank today saw shares rally back above $200. The strong performance was driven by the market facing business that benefitted from strong investments and trading revenues with the company saying net profit YTD is “substantially up on FY21 YTD.” The annuity style business that houses asset management and banking services was weaker in the quarter mostly due to performance fees but in part offset by income from the infrastructure arm. Despite a softer quarter, profit is running in line with the previous year. Surplus capital grew to $11.5b, plenty of room for capital returns come the full year result out in the middle of the year. They didn’t provide any specific guidance for the full year, but reading between the lines of the commentary suggests a strong 2H is expected though Macquarie remains cautious on the medium term outlook.
MM is long and bullish MQG
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