Macquarie announces stellar first half
Stock
Macquarie (MQG) $121.95 as at 02/11/2018
Event
Investment bank Macquarie today released results for the first half to September 30, comfortably beating their guidance. Net profit was up 5% on the first half of FY18, to $1.31B, although this is in line with the second half of FY18. This helped the interim dividend rise around 5% to $2.15. As has been the case over the past few years, Macquarie used the first half figures to revise guidance higher, now looking for 10% profit growth over the year, implying a big $1.5b second half ahead.
Rumors AMP is in the sights of Macquarie have been circling for the past few weeks, growing more since the fire sale of assets by AMP last week. The deal makes some sense – AMP’s bank is performing well and the combined business would grow to rival the big 4 size, Macquarie taking control of AMPs funds could stem outflows and value remains in AMP’s platform infrastructure among many other synergies. MQG is yet to purchase any shares under the buyback announced at the full year result, potentially holding capital for a big acquisition
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