MQG +0.72%: the investment bank announced a 3rd quarter update which has the company tracking ahead of expectations for the FYTD and highlights the diversification of income in the company. The markets facing business is trending above FY22 at this stage, carried by the commodity trading arm, while the annuity-style side of Macquarie is tracking below the same period, though cycling significant one-off profits seen last year. Banking and Financial Services is growing strongly, though offset in part by higher funding costs within the group. On the Asset Management side, base fees are in line but the group expects higher performance fees in FY23. Overall, this means Macquarie’s NPAT is slightly above last year for the first 9-months, with consensus currently expecting a slight decline for FY23. The Group also has more than $12b in excess capital available providing the ability for corporate activity for the rest of the year and into FY24.
MM is bullish and long MQG ~$190
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