(Bloomberg) -- Macquarie Group Ltd. stuck by its forecast that this year's earnings will be “slightly down” on last year's record profit, despite a strong start to the year.
- First-half net income rose 11% to A$1.46 billion ($1 billion), the Sydney-based investment bank and asset manager said Friday.
Key Insights
- It's the first time since 2012 that the Sydney-based investment bank and asset manager has ended the first-half still forecasting a decline in full-year profit.
- While Macquarie increased its first-half dividend to A$2.50 a share, it reduced the so-called franking level to 40%, meaning Australian shareholders will get less of a tax credit on the payout. That follows a move from ANZ Bank Thursday to also cut its franking level.
- Net profit contribution at the asset management business -- the mainstay of its “annuity-style” steady-income stream operations -- climbed 32% on increased performance and base fees.
- The biggest drag came from investment banking arm Macquarie Capital, where net profit contribution 56% on lower fee income from debt capital markets and impairment charges for some under-performing investments
Market Reaction
- Macquarie shares fell slightly in early Sydney trading, and were down 0.3% as of 10:30 a.m.
Read More
- For more on the results, click here
- Macquarie to Cut About 100 Equities Jobs in New York, London
To contact the reporter on this story: Emily Cadman in Sydney at ecadman2@bloomberg.net
To contact the editors responsible for this story: Marcus Wright at mwright115@bloomberg.net, Peter Vercoe
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