In the latest trading update from Macquarie, despite ructions on the global markets, they said that trading conditions across the Group were satisfactory in the December 2015 quarter. Macquarie continues to expect the FY16 result to be up on FY15. We think they will deliver a profit north of $2.0bn full year.
The annuity-style businesses’ combined December 2015 quarter net profit contribution was up on December 2014 quarter (prior corresponding period) but down on September 2015 quarter (prior period) which benefited from strong performance fees in Macquarie Asset Management. On the other hand, the capital markets facing businesses’ combined December 2015 quarter net profit contribution were down on the prior corresponding period, which benefited from fee income from the Freeport LNG transaction in Commodities and Financial Markets and Macquarie Capital, and up on the prior period.
They reported APRA Basel III Group capital of $A17.3 billion and Group surplus of $A2.8 billion at 31 December 2015.
They said that the Banking and Financial Services’ (BFS) Australian mortgage portfolio was $A27.8 billion at 31 December 2015, up one per cent on 30 September 2015, representing approximately 1.9 per cent of the Australian market. Macquarie platform assets under administration increased to $A59.8 billion at 31 December 2015 up 28 per cent on 30 September 2015 , while BFS deposits increased to $A39.5 billion at 31 December 2015, up two per cent on 30 September 2015. During the quarter, BFS launched the first Macquarie savings and transaction accounts, and new Macquarie Black credit card with premium rewards.
The Group’s short term outlook remains subject to a range of challenges including: market conditions; the impact of foreign exchange; the cost of our continued conservative approach to funding and capital; and potential regulatory changes and tax uncertainties.
Mr Moore said: “Macquarie remains well positioned to deliver superior performance in the medium term due to its deep expertise in major markets, strength in diversity and ability to adapt our portfolio mix to changing market conditions, the ongoing benefits of continued cost initiatives, a strong and conservative balance sheet, and a proven risk management framework and culture.”
