Macquarie (ASX: MQG) operating as usual in update
Stock
Macquarie Bank (ASX: MQG) $125.62 as at 12/02/2019
Event
An operational update has helped the Macquarie (ASX: MQG) share price rally today with the bank performing well in the December quarter.
Now three quarters through for the bank’s March year end, Macquarie is looking at an ‘up to 15%’ increase in profit for the year which is slightly behind the consensus view of 18% profit growth.
For the quarter, Macquarie has seen the market’s facing business drive performance with Macquarie Capital & Commodities and Global Markets rebound from more muted year in FY18. The asset management business has shrunk in the financial year to date, however some larger transactions in the asset finance and banking divisions have helped to offset the fall.
The fall in asset management revenues has been attributed to poor market conditions which saw a 2% fall in assets under management (AUM) in the quarter and a slide in performance fees to be charged.
As always, Macquarie’s guidance included the caveat of “future market conditions makes forecasting difficult” – somewhat ironic from an investment bank, but always leaving room to surprise to the upside at the full year result
Macquarie (ASX: MQG) Chart
Market Matters Take/Outlook
