Macquarie delivers $2.3 billion in profits, retains cautious outlook

Macquarie Group has delivered a 13 per cent increase in its first-half profit to $2.3 billion, as the bank retains its cautious outlook amid volatile conditions on financial markets and market fears of a global recession.

Macquarie chief Shemara Wikramanayake said the group will maintain a “a conservative approach” in the current volatile environment.Credit:Bloomberg

Macquarie on Friday said profits for the six months to September were $2.3 billion, which was 13 per cent higher than the same half last year, but 13 per cent lower than the six months to March this year.

The market had been expecting profits of about $2.2 billion for the half, after conditions have slowed for Macquarie in recent times because of the market volatility unleashed by surging inflation and rising interest rates.

Chief executive Shemara Wikramanayake said: “Macquarie’s businesses continued to perform well against a backdrop of more challenging market conditions, reflecting the diversity of our activities and ongoing focus on prudent risk management. We continue to adapt to meet our clients’ needs.”

In its outlook statement, the bank said: “We continue to maintain a cautious stance, with a conservative approach to capital, funding and liquidity that positions us well to respond to the current environment.”

Macquarie shares are down 21 per cent so far this year, amid market concerns about its exposure to a slowdown in deal-making and falling asset prices. At the bank’s annual meeting in July, Wikramanayake flagged softer conditions in key parts of Macquarie, such as its well-known investment banking unit.

More to come

The Business Briefing newsletter delivers major stories, exclusive coverage and expert opinion. Sign up to get it every weekday morning.

Most Viewed in Business

Source: Read Full Article