SYDNEY – Macquarie Group, Australia’s largest investment bank and asset manager, announced a 39% decline in net profit for the first half of the fiscal year. Despite the decrease, the company stated that its strong capital position enables it to consider share buybacks worth up to 2 billion Australian dollars (US$1.29 billion).
Macquarie’s net profit for the six months ending in September fell to 1.42 billion Australian dollars (US$910 million), compared to the previous year’s figure of A$2.31 billion.
According to Chief Executive Shemara Wikramanayake, “Our annuity-style businesses experienced growth in loan books, deposits, and assets under management. However, the first-half result was significantly lower than the previous corresponding period due to strong prior realizations. Our markets-facing businesses performed well despite reduced market activity and volatility levels.”
During the first half of the fiscal year, Macquarie’s annuity-style activities contributed A$1.3 billion to net profit, a 43% decline from the previous year. These activities encompass Macquarie Asset Management, Banking and Financial Services, and specific Commodities and Global Markets businesses. Markets-facing activities in the same period decreased by 32% to A$1.56 billion.
Directors of the company declared an interim dividend of A$2.55 per share, surpassing consensus forecasts compiled by FactSet, which projected an interim dividend of A$2.42. In comparison, last year’s interim dividend was A$3.00.
Macquarie, known for its conservative forecasts among analysts, did not provide specific guidance for the future.