On November 2, 2018, Macquarie Group Limited (ASX: MQG) made an announcement regarding the results for 1H 2019 which ended on September 30, 2018. The company stated that it had generated net profit after tax amounting to A$1,310 million in 1H 2019 which are attributable to the ordinary shareholders. This reflects the YoY growth of 5%. The top management of the company reflected favorable views for the half-yearly results and highlighted the company’s ability to perform in the changing environment. The company’s asset management business, banking, and financial services business as well as corporate and asset finance business have accounted for around 60% of the total company’s 1H 2019 performance. These businesses have jointly contributed A$1,495 million in the company’s net profits which represents a substantial decline of 29% on the YoY basis.
However, other businesses like commodities and global markets as well as Macquarie Capital have managed to generate joint net profit amounting to A$1,106 million which implies a whopping 95% YoY growth. The company’s management also stated that, in 1H 2019, it focused primarily on the Australian franchise. However, of the company’s total income, 67% was made up of the international income. The company’s AUM or assets under management clocked in at A$551.0 billion which reflects the rise of 11% from the AUM figure on March 31, 2018. This rise was mainly on the back of investments which was done by MIRA or Macquarie Infrastructure and Real Assets managed funds, favorable movement in the markets, the impact of the foreign exchange as well as because of the acquisitions made like ValueInvest Asset Management SA as well as GLL Real Estate Partners.
The management of Macquarie Group Limited believes that it is in a very strong position as it is supported by a diverse as well as a strong global platform. The company is also helped by the strong expertise spanning across several products as well as asset classes. The strong position is well-supported by the strengthened balance sheet, strong liquidity and funding position, surplus capital as well as its conservation approach when it comes to risks.
The company’s net operating income in 1H 2019 rose 8% YoY and total operating expenses rose 12% YoY. It had also provided an outlook for FY 2019 by stating that the FY 2019 results would be around 10% higher as compared to FY 2018. However, the management of the company expects that in the short term the business is expected to remain sensitive primarily to the market conditions, geographical composition, foreign exchange impact, regulatory pressures as well as tax uncertainties and the conduct in regard to the period-end reviews as well as completion rate of the transactions.
At the time of writing, the stock price of Macquarie Group was trading at A$122.0 implying a rise of A$4.130 per share or 3.504% intraday. The stock price is trading at the higher range and it has a market capitalization of $40.12 billion. Macquarie Group is presently having an annual dividend yield of 4.45%.
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