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Highlights
- Macquarie Group today (July 28) shared its financial results for the first quarter of 2023 ended on 30 June 2022.
- Since 30 September 2021, Macquarie has had high capital deployment over a protracted timeframe, with an AU$3.4 billion increase in capital requirements.
- Shares of Macquarie were trading 2.08% higher at AU$177.34 each on ASX today at 12.11 PM AEST.
Financial company Macquarie Group (ASX:MQG) has shared its financial results today (28 July 2022) for the first quarter of 2023 ended on 30 June 2022.
On the back of the news, shares of Macquarie were trading 3.18% higher at AU$179.26 each on ASX today at 3.10 PM AEST.
The combined 1Q23 net profit contribution of Macquarie's annuity-style businesses—Macquarie Asset Management (MAM) and Banking and Financial Services (BFS) was much higher than what it was reported in 1Q22.
Macquarie Group also said that the the combined 1Q23 net profit contribution of the company’s market-facing businesses, Commodities and Global Markets (CGM), and Macquarie Capital, was more than the 1Q22 figure. The gain was mainly due to the strong performance of CGM's Commodities platform, including the timing of income recognition on gas transport and storage contracts.
With a Group capital surplus of AU$10.1 billion on 30 June 2022—down from AU$10.7 billion on 31 March 2022—Macquarie Group's financial condition continues to comfortably surpass the Basel III regulatory criteria set forth by the Australian Prudential Regulation Authority (APRA). The Bank Group APRA Basel III Common Equity Tier 1 capital ratio increased from 11.5% at the end of March 2022 to 12.3% at the end of June 2022.
Since 30 September 2021, Macquarie has had high capital deployment over a protracted timeframe, with an AU$3.4 billion increase in capital requirements across all four operational areas. Operating groups are still looking for opportunities to invest more money if the expected risk-adjusted returns are favourable to shareholders.
Image Source: © 2022 Kalkine Media ®
Data Source- Company announcement dated 28 July 2022
Business highlights
MAM: On 30 June 2022, MAM managed AU$773.9 billion in assets, roughly in line with the amount managed on 31 March 2022.
BFS: At AU$106.4 billion as of 30 June 2022, BFS's total deposits were up 9% from 31 March 2022.
CGM: Strong gains across the Commodities platform resulted from trading and client hedging possibilities as CGM continues to help clients during a time of high volatility and commodity prices.
Macquarie Capital: As a result of mergers and acquisitions and activity in the debt capital markets, Macquarie Capital's fee and commission income increased compared to the first quarter of 2022, which was slightly offset by lower activity in the equity capital markets.
Image Source: © Wutzkoh | Megapixl.com
Road ahead
Macquarie will continue to take a cautious approach, focusing on conserving capital, funding, and liquidity, which puts the company in a good position to respond to the current situation.
