Australian (ASX) Stock Market Forum

MQG - Macquarie Group

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Dona Ferentes said:
And taking a hit on today's update

Macquarie Group has cited weaker trading conditions for delivering first quarter financial 2024 net profit that was substantially down on the first quarter of the 2023 financial year.

Macquarie recorded a capital surplus of $10.8 billion at 30 June 2023.

Macquarie said its annuity-style businesses Macquarie Asset Management and banking and financial services posted a combined 1Q24 net profit contribution substantially down on 1Q23 “primarily due to lower investment-related income from green energy investments in MAM.”

Banking and financial services contribution was significantly up on the prior corresponding period “driven by growth in the loan portfolio and deposits together with improved margins."
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my theoretical average SP is $26.76 and i DRP MQG so a drop in share price is actually a good thing for me ( as long as the divs aren't slashed too badly )

interesting that the 'green adventure ' is a big drag , similar to what is seen elsewhere

am guessing i will not be buying more MQG for $20 ( my cheapest buy ) any time soon
 
divs4ever said:
i will not be buying more MQG for $20 ( my cheapest buy
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Yeah , not ever.
Same purchase price for me with Wise Tech Global and haven't ever sold a single share.
Maybe never will . Noticed the record high S.P. yesterday , but mostly I take after CEO , Richard White , who admitted in an AFR interview years ago , that he can't be bothered even looking at his share price.
It's called "buy and hold" I think . An old fashioned method ,mostly looked down upon by all the experts chasing after every tick on their screens , predicting doom and gloom from one day to the next ,at every slip in the index .
 
Got another 10 grand worth today , at $ 170 .
Was trying for $ 160 but thought better of it after missing out by a country mile with a ludicrous $ 250 bid with ever elusive , CSL . That train has now left the station . Last time I looked , there were twice as many buyers as sellers , a lot of the dreamers ,bunched up around my old $ 250 mark , too.
If MQG comes back a bit , to $ 160 , I'll have to be ready with my big fat thumb , for another red hot go .
Gotta love the dips , I say .
 
In just six weeks, Macquarie has experienced its second downgrade.

Macquarie Group's asset management division revised its short-term outlook, anticipating that returns from potential asset sales would extend into the latter half of its 2023-24 financial year. This downgrade follows the one issued at the bank's annual meeting in late July and precedes the bank's first-half numbers due on 30 September.

The July update highlighted "weaker trading conditions, with the first quarter of the 2023-24 Operating Group contribution substantially lower than the corresponding period last year."
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Recently, Asset Management has been the second-largest contributor to the group's earnings, with the commodities and global markets business ranking as the largest.
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misfiring. down 3 per cent, and closed just above $170
.
 
the CMA has been their main offering ... a significant number of SMSFs use this..
.
Macquarie Bank will phase out its cash, cheque and phone payments for customers from next year as it moves to digital-only payment systems.
Under the changes, Macquarie Bank - which is Australia's fifth-largest bank - is also ending its partnership with NAB bank branches.

In a letter written to customers, Macquarie Bank said that by November 2024 customers will be unable to write or deposit cheques (including bank cheques), deposit or withdraw cash over the counter at NAB branches or make a super contribution or payment with a cheque.

From January, Macquarie Bank customers will
  • not be able to order a new cheque book.
  • the telephone banking system will be scrapped in March next year,
  • in May cheques will be ditched completely
  • customers will also be no longer able to deposit or withdraw cash or cheques over the counter at Macquarie branches from May 2024
 
All good points re MQG above.

It is a rock n roller dropping 20% at times and in the Time of Sneezes not much more, and attractive for the divies for folk like @divs4ever who bought it just before St. Paul decided to start a blog.

I've been in and out of it over the last few years, and got in again recently. I like it for its macro moves on macro issues, stuff that moves other markets i.e. Good News = Rise in Share Price unlike our own market which is held back by schoolboy fundies with mother and/or buddha issues. So once you are in, just by reading the Press of Murdoch or watching Sunrise, one can estimate where the SP of MQG is going.

It is predictable.

Many shun it because of the price in the hundreds of dollars, which is chickenfeed for the cousins in the USA and thats before they have to decide whether to buy 1/3 more because the $AUD is heading towards worthless under the CFMEU comrades in government. And they buy in millions.

A rise in the share price from $160 to $200 is a 25% profit. Just sayin'. Then again I may be completely wrong and @divs4ever will have another buying opportunity.

What a kerfuffle !

gg : Did I hear someone sneeze ??
St. Paul :You are not suggesting "IT" is coming back ?
gg : Nah
St. Paul : Did I hear someone sneeze?
gg : You tell me, you write the scripts.

MQG.png




gg
 
Garpal Gumnut said:
All good points re MQG above.

It is a rock n roller dropping 20% at times and in the Time of Sneezes not much more, and attractive for the divies for folk like @divs4ever who bought it just before St. Paul decided to start a blog.

I've been in and out of it over the last few years, and got in again recently. I like it for its macro moves on macro issues, stuff that moves other markets i.e. Good News = Rise in Share Price unlike our own market which is held back by schoolboy fundies with mother and/or buddha issues. So once you are in, just by reading the Press of Murdoch or watching Sunrise, one can estimate where the SP of MQG is going.

It is predictable.

Many shun it because of the price in the hundreds of dollars, which is chickenfeed for the cousins in the USA and thats before they have to decide whether to buy 1/3 more because the $AUD is heading towards worthless under the CFMEU comrades in government. And they buy in millions.

A rise in the share price from $160 to $200 is a 25% profit. Just sayin'. Then again I may be completely wrong and @divs4ever will have another buying opportunity.

What a kerfuffle !

gg : Did I hear someone sneeze ??
St. Paul :You are not suggesting "IT" is coming back ?
gg : Nah
St. Paul : Did I hear someone sneeze?
gg : You tell me, you write the scripts.

View attachment 165763



gg
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at current prices MQG SP is only really relevant as i participate in the DRP

$200 means less shares for me in December
 
also since i bought before the SYD divestment ... MQG will have to do something truly exciting to get me to part with my cash at anything above $30 a share ( my av' SP is $26.76 a share ignoring the SYD gains )
 
Just a chart, but I notice that recently a strong 2 year downtrend resistance line has been breached for MQG.
I checked Macquarie out because I've heard it is a bellwether for the Oz economy. I think G Canavan was the source of that, but to the contrary in recent times he's talked about the negative lag effect of a rising cycle of interest rates on the economy - a part of the backdrop for him lately reccing already smashed meat and potato stocks that pay a dividend or gold stocks. Bit confusing - MQG is improving but lag effect of interest rate hikes should depress the economy?

Not Held

WEEKLY
Screenshot_20240203-101629_Chrome.jpg
 
finicky said:
Just a chart, but I notice that recently a strong 2 year downtrend resistance line has been breached for MQG.
I checked Macquarie out because I've heard it is a bellwether for the Oz economy. I think G Canavan was the source of that, but to the contrary in recent times he's talked about the negative lag effect of a rising cycle of interest rates on the economy - a part of the backdrop for him lately reccing already smashed meat and potato stocks that pay a dividend or gold stocks. Bit confusing - MQG is improving but lag effect of interest rate hikes should depress the economy?

Not Held

WEEKLY
View attachment 170135
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MQG is a complex beast , it trades commodities because it signs up miners in hedging contracts , it leases aircraft to air-lines , and invests almost anywhere ( including Australian home mortgages ) it thinks it can make money

some compare MQG to Goldman Sachs , but am not sure who is being smeared by that comparison

but bellwether ( ??? ) gee i have heard much nastier terms used for MQG

now i bought back in 2011 ( as low as $20 a share , before the consolidation )

but shows signs of actively 'green-washing' it's reputation , so i will be thinking of an exit price if it hits $200

but mind you it has been a very profitable 13 years ( so far ) plenty of gains realized on the way

now MQG has side-stepped the ( sensible ) growth constraints of the big 4 rivals , but can it find new paths to profits , buying bankrupt wind/solar farms perhaps and selling the carbon credits generated ( to it's airline customers )

remember even the Hayne Royal Commission couldn't smear the MQG reputation
 
divs4ever said:
it trades commodities because it signs up miners in hedging contracts
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Didn't know that but can add it to all the other things I don't now about MQG.
By 'bellwether' I meant 'windsock' to use another figure. If MQG is going well, the rest of the market and the economy are expected to go well - well that I believe was the premiss anyway. Farmers used to attach a bell to a specific sheep and could tell from that one sheep where the flock was.
 
finicky said:
Didn't know that but can add it to all the other things I don't now about MQG.
By 'bellwether' I meant 'windsock' to use another figure. If MQG is going well, the rest of the market and the economy are expected to go well - well that I believe was the premiss anyway. Farmers used to attach a bell to a specific sheep and could tell from that one sheep where the flock was.
Click to expand...
i believe it has a commodity trading desk in Singapore and maybe another elsewhere

but it was selling the hedged gold ( from loans to producers a while back )

but maybe more an indicator of G7 economic health it bought the 'Green Bank ' in the UK much to the howls of the environmentalists

it is very multi-pronged with interests all over ( MacQuarie Altas now ALX , MacQuarie Telecom , they had a major interest in Sydney Airport until they demerged the holding were all former major investments )

some detractors call them the Vampire-Kangaroo , now that might be nasty but is it inaccurate ( from memory they acquired OTH -On the house ) were unsuccessful taking over CTP ( dodging a bullet there )

now under former CEO Nick Moore the company seemed to be coated in Teflon , the new CEO has a tough act to follow

BTW i would expect MQG to be doing better in the nastiest of times ( with it vulture capitalist tendencies ) after all with all the Basel III/IV regulations/upgrades nobody seems to worry about MQG's solvency you've seen Credit Suisse fail , Deutsche Bank create all sorts of concerns ...

an extract from the Hayne Royal Commission

On Accountability - Nicholas Moore - Macquarie Group - Royal Commission - Edited by Cullen Haynes

Perhaps it’s the former Mac Banker in me, however, watching my nightly highlights from the Royal Commission, something that CEO Nicholas Moore said reminded me of why I am proud to have worked with such a great team of people and still value and carry on what I learned each and every day. Some...
invidious.lunar.icu invidious.lunar.icu


The CEO of Macquarie testifies at the Banking Royal Commission​

The CEO of Macquarie testifies at the Banking Royal Commission

[7.5] Nicholas Moore, Managing Director and Chief Executive Officer of Macquarie Group, is being questioned over the enforceable undertaking ASIC imposed on Macquarie in 2013 after it uncovered eight potential breaches of the Corporations Act by Macquarie Equities and a potential breach of its...
invidious.lunar.icu invidious.lunar.icu

the much longer version
 
MACQUARIE GROUP 2024 OPERATIONAL BRIEFING

Key points
• FY24 year to date (YTD) Net Profit After Tax substantially down on FY23 YTD which included an exceptional quarterly result in 3Q23, however underlying client franchises were resilient in ongoing uncertain conditions
• Macquarie's annuity-style businesses' (Macquarie Asset Management (MAM) and Banking and Financial Services (BFS)) combined December 2023 quarter (3Q24) net profit contribution was down on the prior corresponding period (pcp) (3Q23) mainly due to lower asset realisations in green investments in MAM and margin compression along with run off in the car loan portfolio, partially offset by volume growth across home loans and business lending in BFS
- FY24 YTD net profit contribution substantially down on FY23 YTD primarily due to lower asset realisations in green investments and continued investment in the development of green energy portfolio companies in MAM
• Macquarie's markets-facing businesses' (Commodities and Global Markets (CGM) and Macquarie Capital) combined 3Q24 net profit contribution was substantially down on the pcp primarily due to exceptionally strong results in Commodities in the pcp in CGM and lower fee and commission income, partially offset by investment-related income in Macquarie Capital - FY24 YTD net profit contribution substantially down on FY23 YTD mainly due to exceptionally strong results in Commodities including gas and power in the pcp in CGM and non-recurrence of material asset realisations and lower fee and commission income, partially offset by higher net interest income from portfolio growth and gains from a small number of investments in Macquarie Capital
• Group financial position comfortably exceeds regulatory requirements -
Group capital surplus of $A9.7 billion1,2 - Bank CET1 ratio 13.4% (Harmonised: 18.2%3 ),
Leverage ratio 5.0% (Harmonised: 5.7%3 ), LCR 217%4 , NSFR 113%4
SYDNEY, 13 February 2024 Macquarie Group Limited (Macquarie) (ASX: MQG; ADR: MQBKY) today provided an update on business activity in the third quarter of the financial year ending 31 December 2023 (3Q24).

1 The Group capital surplus is the amount of capital above APRA regulatory requirements. Bank Group regulatory requirements are calculated in accordance with Prudential Standard APS 110 - Capital Adequacy, at 10.50% of RWA. This includes the industry minimum Tier 1 requirement of 6.0%, CCB of 3.75% and a CCyB. The CCyB of the Bank Group at December 2023 is 0.71% (September 2023: 0.71%; March 2023: 0.61%), this is rounded to 0.75% (September 2023: 0.75%, March 2023: 0.5%) for presentation purposes. The individual CCyB varies by jurisdiction and the Bank Group CCyB is calculated as a weighted average based on exposures in different jurisdictions at period end. 2 The surplus reported includes provisions for internal capital buffers and differences between Level 1 and Level 2 requirements, including the $A500m operational capital overlay imposed by APRA. 3 ‘Harmonised’ Basel III estimates are calculated in accordance with the updated Basel Committee on Banking Supervision (BCBS) Basel III framework, noting that MBL is not regulated by the BCBS and so impacts shown are indicative only. 4 Average LCR for December 2023 quarter is based on an average of daily observations. APRA imposed a 15% add-on to the Net Cash Outflow component of the LCR calculation, and a 1% decrease to the Available Stable Funding component of the NSFR calculation, effective from 1 April 21. The LCR Net Cash Outflow add-on increased to 25% from 1 May 2022. Macquarie Group Limited 2 Macquarie Group Managing Director and Chief Executive Officer, Shemara Wikramanayake, said: “Underlying client franchises were resilient in ongoing uncertain conditions with continued customer growth, fundraising and new business origination a feature across all of our businesses.” The annuity-style businesses’ combined 3Q24 net profit contribution was down on 3Q23.
For FY24 YTD, net profit contribution substantially down on FY23 YTD, primarily due to lower asset realisations in green investments and continued investment in the development of green energy portfolio companies in MAM.
The markets-facing businesses’ combined 3Q24 net profit contribution was substantially down on 3Q23.
For FY24 YTD, net profit contribution substantially down on FY23 YTD. This was mainly due to exceptionally strong results in Commodities including gas and power in the pcp in CGM and non-recurrence of material asset realisations and lower fee and commission income, partially offset by higher net interest income from portfolio growth and gains from a small number of investments in Macquarie Capital.
Macquarie Group’s financial position comfortably exceeds APRA’s Basel III regulatory requirements, with a Group capital surplus of $A9.7 billion1,2 at 31 December 2023, down from $A10.5 billion at 30 September 2023. The Bank Group’s APRA Basel III Common Equity Tier 1 capital ratio was 13.4 per cent (Harmonised: 18.2 per cent3 ) at 31 December 2023, up from 13.2 per cent at 30 September 2023. The Bank Group’s APRA leverage ratio was 5.0 per cent (Harmonised: 5.7 per cent3 ), the Liquidity Coverage Ratio (LCR) was 217 per cent4 and the Net Stable Funding Ratio (NSFR) was 113 per cent4 at 31 December 2023.
Third quarter business highlights Ms Wikramanayake provided an overview of business activity undertaken during 3Q24:
MAM had assets under management (AUM) of $A882.5 billion at 31 December 2023, down one per cent on 30 September 2023.
In the quarter, Public Investments AUM fell two per cent to $A535.1 billion, primarily driven by net flows and unfavourable foreign exchange movements, partially offset by positive market movements.
Private Markets AUM5 rose one per cent to $A347.4 billion, primarily driven by fund investments and increase in asset valuations, partially offset by unfavourable foreign exchange movements.
At 31 December 2023, Private Markets’ equity under management6 was $A210.6 billion with $A35.4 billion of equity to deploy after raising $A6.7 billion in new equity, investing $A6.0 billion and divesting $A0.1 billion.
BFS had total deposits7 of $A135.6 billion at 31 December 2023, up three per cent on 30 September 2023.
The home loan portfolio of $A117.9 billion increased three per cent on 30 September 2023, while funds on platform8 of $A132.8 billion increased six per cent.
During 3Q24, the business banking loan portfolio increased six per cent to $A15.5 billion, while the car loans portfolio decreased eight per cent to $A4.8 billion. CGM commodities contribution was down on the pcp, primarily due to decreased inventory management and trading revenues in North American Gas, Power and Emissions.
The result also included a reduced contribution from risk management revenue, primarily in the Resources and Gas, Power and Emissions sectors, as volatility and price movements stabilised across commodity markets following previous record highs.
CGM saw a consistent contribution from client risk management, market access and financing activity across the Financial Markets businesses including fixed income, foreign exchange, credit and futures.
CGM also saw continued positive performance across all industries in Asset Finance with portfolio growth driven by Advanced Technology and Shipping Finance sectors
. Macquarie Capital completed 59 transactions globally in 3Q24, valued at $A65 billion9 . Investment-related income was significantly up on the pcp and down on the prior period.
Fee revenue was down on both the pcp and the prior period, driven by lower mergers and acquisition (M&A) fees.
The Private Credit portfolio of over $A20 billion10 with $A1.5 billion deployed in 3Q24 through focused investment in credit markets and bespoke financing solutions. 5
As at 31 December 2023. Private Markets Assets under Management (AUM) is calculated as the proportional ownership interest in the underlying assets of funds and mandated assets that Macquarie actively manages or advises for the purpose of wealth creation, adjusted to exclude cross-holdings in funds and reflect Macquarie’s proportional ownership interest of the fund manager.
Private Markets AUM includes equity yet to deploy and equity committed to assets but not yet deployed. 6 Private Markets’ total Equity under Management includes market capitalisation at measurement date for listed funds, the sum of original committed capital less capital subsequently returned for unlisted funds and mandates as well as invested capital for managed businesses. 7 BFS Deposits include home loan offset accounts and exclude certain corporate/wholesale deposits. 8 Funds on platform includes Macquarie Wrap, Funds Under Management in relation to institutional relationships and Macquarie Vision (used by Macquarie Private Bank). 9 Dealogic & IJ Global for Macquarie Group completed Mergers & Acquisitions, investments, Equity Capital Markets and Debt Capital Markets transactions converted as at the relevant report date. Deal values reflect the full transaction value and not an attributed value. Comparatives are presented as previously reported. 10 Committed portfolio as at 31 December 2023. Macquarie Group Limited 3

On-market share buyback On 3 November 2023, Macquarie announced that it intends to buy back up to $A2.0 billion of ordinary shares onmarket. The buyback provides additional flexibility to manage the Group’s capital position and Macquarie retains the ability to vary, pause or terminate the buyback at any time. As at 31 December 2023, a total of $A235.8 million of ordinary shares have been acquired on-market at an average price of $A168.74 per share.

Management update After 28 years with Macquarie and five years as Group Head, Nicholas O’Kane has decided to step down as Head of Commodities and Global Markets and from Macquarie’s Executive Committee, effective 27 February 2024, to pursue opportunities outside Macquarie. Simon Wright, currently Global Head of CGM’s Financial Markets division, becomes Group Head of CGM and following the completion of necessary procedures will join the Executive Committee from 1 April 2024.
Mr Wright has been with Macquarie for 35 years, leading the build and oversight of Macquarie’s global Financial Markets platform and as a senior member of the CGM leadership team. Outlook
The Group highlighted business-specific factors impacting its short-term outlook:
Macquarie Asset Management
• Base fees expected to be broadly in line
• Subject to market conditions and the completion of a number of transactions in 4Q24, Net Other Operating Income11 for 2H24 is expected to be substantially down on 2H23 Banking and Financial Services
• Growth in loan portfolio, deposits and platform volumes
• Market dynamics to continue to drive margins
• Ongoing monitoring of provisioning
• Higher expenses to support volume growth, technology investment, compliance and regulatory requirements Macquarie Capital – subject to market conditions:
• Transaction activity in FY24 is expected to be slightly down on FY23
• Investment-related income for 2H24 expected to be significantly up on 1H24, with increased FY24 revenue from growth in the private credit portfolio and gains on a small number of investments partially offset by lower revenue due to the timing of asset realisations
• Continued balance sheet deployment in both debt and equity investments Commodities and Global Markets - subject to market conditions, which make forecasting difficult:
• Commodities income benefitted from exceptionally strong trading conditions in FY23. Commodities income is expected to be broadly in line with the prior FY22, albeit volatility may create opportunities
• Consistent contribution from client and trading activity across the Financial Markets platform
• Continued contribution from Asset Finance across sectors From a Corporate perspective, the FY24 compensation ratio and effective tax rate are expected to be broadly in line with historical levels.
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. The range of factors that may influence our short-term outlook include: 11 Net Other Operating Income includes all operating income excluding base fees. Macquarie Group Limited 4
• Market conditions including global economic conditions, inflation and interest rates, significant volatility events, and the impact of geopolitical events
• Completion of period-end reviews and the completion of transactions
• The geographic composition of income and the impact of foreign exchange
• Potential tax or regulatory changes and tax uncertainties

Ms Wikramanayake said, “Macquarie remains well-positioned to deliver superior performance in the medium term with its diverse business mix across annuity-style and markets-facing businesses; deep expertise across diverse sectors in major markets with structural growth tailwinds; patient adjacent growth across new products and new markets; ongoing technology and regulatory spend to support the Group; a strong and conservative balance sheet; and a proven risk management framework and culture.”

i hold MQG ( 'free-carried' )

hmmm a significant number of words but substantially lacking in figures( percentages )

@qldfrog will be delighted to note that even 'golden-fingered ' MQG is not immune from the 'green-investing ' train-wreck

will the market be bedazzled with this result ??
 
divs4ever said:
MACQUARIE GROUP 2024 OPERATIONAL BRIEFING

Key points
• FY24 year to date (YTD) Net Profit After Tax substantially down on FY23 YTD which included an exceptional quarterly result in 3Q23, however underlying client franchises were resilient in ongoing uncertain conditions
• Macquarie's annuity-style businesses' (Macquarie Asset Management (MAM) and Banking and Financial Services (BFS)) combined December 2023 quarter (3Q24) net profit contribution was down on the prior corresponding period (pcp) (3Q23) mainly due to lower asset realisations in green investments in MAM and margin compression along with run off in the car loan portfolio, partially offset by volume growth across home loans and business lending in BFS
- FY24 YTD net profit contribution substantially down on FY23 YTD primarily due to lower asset realisations in green investments and continued investment in the development of green energy portfolio companies in MAM
• Macquarie's markets-facing businesses' (Commodities and Global Markets (CGM) and Macquarie Capital) combined 3Q24 net profit contribution was substantially down on the pcp primarily due to exceptionally strong results in Commodities in the pcp in CGM and lower fee and commission income, partially offset by investment-related income in Macquarie Capital - FY24 YTD net profit contribution substantially down on FY23 YTD mainly due to exceptionally strong results in Commodities including gas and power in the pcp in CGM and non-recurrence of material asset realisations and lower fee and commission income, partially offset by higher net interest income from portfolio growth and gains from a small number of investments in Macquarie Capital
• Group financial position comfortably exceeds regulatory requirements -
Group capital surplus of $A9.7 billion1,2 - Bank CET1 ratio 13.4% (Harmonised: 18.2%3 ),
Leverage ratio 5.0% (Harmonised: 5.7%3 ), LCR 217%4 , NSFR 113%4
SYDNEY, 13 February 2024 Macquarie Group Limited (Macquarie) (ASX: MQG; ADR: MQBKY) today provided an update on business activity in the third quarter of the financial year ending 31 December 2023 (3Q24).

1 The Group capital surplus is the amount of capital above APRA regulatory requirements. Bank Group regulatory requirements are calculated in accordance with Prudential Standard APS 110 - Capital Adequacy, at 10.50% of RWA. This includes the industry minimum Tier 1 requirement of 6.0%, CCB of 3.75% and a CCyB. The CCyB of the Bank Group at December 2023 is 0.71% (September 2023: 0.71%; March 2023: 0.61%), this is rounded to 0.75% (September 2023: 0.75%, March 2023: 0.5%) for presentation purposes. The individual CCyB varies by jurisdiction and the Bank Group CCyB is calculated as a weighted average based on exposures in different jurisdictions at period end. 2 The surplus reported includes provisions for internal capital buffers and differences between Level 1 and Level 2 requirements, including the $A500m operational capital overlay imposed by APRA. 3 ‘Harmonised’ Basel III estimates are calculated in accordance with the updated Basel Committee on Banking Supervision (BCBS) Basel III framework, noting that MBL is not regulated by the BCBS and so impacts shown are indicative only. 4 Average LCR for December 2023 quarter is based on an average of daily observations. APRA imposed a 15% add-on to the Net Cash Outflow component of the LCR calculation, and a 1% decrease to the Available Stable Funding component of the NSFR calculation, effective from 1 April 21. The LCR Net Cash Outflow add-on increased to 25% from 1 May 2022. Macquarie Group Limited 2 Macquarie Group Managing Director and Chief Executive Officer, Shemara Wikramanayake, said: “Underlying client franchises were resilient in ongoing uncertain conditions with continued customer growth, fundraising and new business origination a feature across all of our businesses.” The annuity-style businesses’ combined 3Q24 net profit contribution was down on 3Q23.
For FY24 YTD, net profit contribution substantially down on FY23 YTD, primarily due to lower asset realisations in green investments and continued investment in the development of green energy portfolio companies in MAM.
The markets-facing businesses’ combined 3Q24 net profit contribution was substantially down on 3Q23.
For FY24 YTD, net profit contribution substantially down on FY23 YTD. This was mainly due to exceptionally strong results in Commodities including gas and power in the pcp in CGM and non-recurrence of material asset realisations and lower fee and commission income, partially offset by higher net interest income from portfolio growth and gains from a small number of investments in Macquarie Capital.
Macquarie Group’s financial position comfortably exceeds APRA’s Basel III regulatory requirements, with a Group capital surplus of $A9.7 billion1,2 at 31 December 2023, down from $A10.5 billion at 30 September 2023. The Bank Group’s APRA Basel III Common Equity Tier 1 capital ratio was 13.4 per cent (Harmonised: 18.2 per cent3 ) at 31 December 2023, up from 13.2 per cent at 30 September 2023. The Bank Group’s APRA leverage ratio was 5.0 per cent (Harmonised: 5.7 per cent3 ), the Liquidity Coverage Ratio (LCR) was 217 per cent4 and the Net Stable Funding Ratio (NSFR) was 113 per cent4 at 31 December 2023.
Third quarter business highlights Ms Wikramanayake provided an overview of business activity undertaken during 3Q24:
MAM had assets under management (AUM) of $A882.5 billion at 31 December 2023, down one per cent on 30 September 2023.
In the quarter, Public Investments AUM fell two per cent to $A535.1 billion, primarily driven by net flows and unfavourable foreign exchange movements, partially offset by positive market movements.
Private Markets AUM5 rose one per cent to $A347.4 billion, primarily driven by fund investments and increase in asset valuations, partially offset by unfavourable foreign exchange movements.
At 31 December 2023, Private Markets’ equity under management6 was $A210.6 billion with $A35.4 billion of equity to deploy after raising $A6.7 billion in new equity, investing $A6.0 billion and divesting $A0.1 billion.
BFS had total deposits7 of $A135.6 billion at 31 December 2023, up three per cent on 30 September 2023.
The home loan portfolio of $A117.9 billion increased three per cent on 30 September 2023, while funds on platform8 of $A132.8 billion increased six per cent.
During 3Q24, the business banking loan portfolio increased six per cent to $A15.5 billion, while the car loans portfolio decreased eight per cent to $A4.8 billion. CGM commodities contribution was down on the pcp, primarily due to decreased inventory management and trading revenues in North American Gas, Power and Emissions.
The result also included a reduced contribution from risk management revenue, primarily in the Resources and Gas, Power and Emissions sectors, as volatility and price movements stabilised across commodity markets following previous record highs.
CGM saw a consistent contribution from client risk management, market access and financing activity across the Financial Markets businesses including fixed income, foreign exchange, credit and futures.
CGM also saw continued positive performance across all industries in Asset Finance with portfolio growth driven by Advanced Technology and Shipping Finance sectors
. Macquarie Capital completed 59 transactions globally in 3Q24, valued at $A65 billion9 . Investment-related income was significantly up on the pcp and down on the prior period.
Fee revenue was down on both the pcp and the prior period, driven by lower mergers and acquisition (M&A) fees.
The Private Credit portfolio of over $A20 billion10 with $A1.5 billion deployed in 3Q24 through focused investment in credit markets and bespoke financing solutions. 5
As at 31 December 2023. Private Markets Assets under Management (AUM) is calculated as the proportional ownership interest in the underlying assets of funds and mandated assets that Macquarie actively manages or advises for the purpose of wealth creation, adjusted to exclude cross-holdings in funds and reflect Macquarie’s proportional ownership interest of the fund manager.
Private Markets AUM includes equity yet to deploy and equity committed to assets but not yet deployed. 6 Private Markets’ total Equity under Management includes market capitalisation at measurement date for listed funds, the sum of original committed capital less capital subsequently returned for unlisted funds and mandates as well as invested capital for managed businesses. 7 BFS Deposits include home loan offset accounts and exclude certain corporate/wholesale deposits. 8 Funds on platform includes Macquarie Wrap, Funds Under Management in relation to institutional relationships and Macquarie Vision (used by Macquarie Private Bank). 9 Dealogic & IJ Global for Macquarie Group completed Mergers & Acquisitions, investments, Equity Capital Markets and Debt Capital Markets transactions converted as at the relevant report date. Deal values reflect the full transaction value and not an attributed value. Comparatives are presented as previously reported. 10 Committed portfolio as at 31 December 2023. Macquarie Group Limited 3

On-market share buyback On 3 November 2023, Macquarie announced that it intends to buy back up to $A2.0 billion of ordinary shares onmarket. The buyback provides additional flexibility to manage the Group’s capital position and Macquarie retains the ability to vary, pause or terminate the buyback at any time. As at 31 December 2023, a total of $A235.8 million of ordinary shares have been acquired on-market at an average price of $A168.74 per share.

Management update After 28 years with Macquarie and five years as Group Head, Nicholas O’Kane has decided to step down as Head of Commodities and Global Markets and from Macquarie’s Executive Committee, effective 27 February 2024, to pursue opportunities outside Macquarie. Simon Wright, currently Global Head of CGM’s Financial Markets division, becomes Group Head of CGM and following the completion of necessary procedures will join the Executive Committee from 1 April 2024.
Mr Wright has been with Macquarie for 35 years, leading the build and oversight of Macquarie’s global Financial Markets platform and as a senior member of the CGM leadership team. Outlook
The Group highlighted business-specific factors impacting its short-term outlook:
Macquarie Asset Management
• Base fees expected to be broadly in line
• Subject to market conditions and the completion of a number of transactions in 4Q24, Net Other Operating Income11 for 2H24 is expected to be substantially down on 2H23 Banking and Financial Services
• Growth in loan portfolio, deposits and platform volumes
• Market dynamics to continue to drive margins
• Ongoing monitoring of provisioning
• Higher expenses to support volume growth, technology investment, compliance and regulatory requirements Macquarie Capital – subject to market conditions:
• Transaction activity in FY24 is expected to be slightly down on FY23
• Investment-related income for 2H24 expected to be significantly up on 1H24, with increased FY24 revenue from growth in the private credit portfolio and gains on a small number of investments partially offset by lower revenue due to the timing of asset realisations
• Continued balance sheet deployment in both debt and equity investments Commodities and Global Markets - subject to market conditions, which make forecasting difficult:
• Commodities income benefitted from exceptionally strong trading conditions in FY23. Commodities income is expected to be broadly in line with the prior FY22, albeit volatility may create opportunities
• Consistent contribution from client and trading activity across the Financial Markets platform
• Continued contribution from Asset Finance across sectors From a Corporate perspective, the FY24 compensation ratio and effective tax rate are expected to be broadly in line with historical levels.
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. The range of factors that may influence our short-term outlook include: 11 Net Other Operating Income includes all operating income excluding base fees. Macquarie Group Limited 4
• Market conditions including global economic conditions, inflation and interest rates, significant volatility events, and the impact of geopolitical events
• Completion of period-end reviews and the completion of transactions
• The geographic composition of income and the impact of foreign exchange
• Potential tax or regulatory changes and tax uncertainties

Ms Wikramanayake said, “Macquarie remains well-positioned to deliver superior performance in the medium term with its diverse business mix across annuity-style and markets-facing businesses; deep expertise across diverse sectors in major markets with structural growth tailwinds; patient adjacent growth across new products and new markets; ongoing technology and regulatory spend to support the Group; a strong and conservative balance sheet; and a proven risk management framework and culture.”

i hold MQG ( 'free-carried' )

hmmm a significant number of words but substantially lacking in figures( percentages )

@qldfrog will be delighted to note that even 'golden-fingered ' MQG is not immune from the 'green-investing ' train-wreck

will the market be bedazzled with this result ??
Click to expand...
I know and a bit pissed off as I own MQG so I have in a way out money in the train and country wrecking WEF challenge
 
well if MQG is having trouble with 'green investments ' what chance this sector will deflate rapidly

MQG can seemingly make money out of anything ( and normally sell it at a profit near the top of a cycle )

but then some staff are leaving maybe there are more changes coming ( where MG tries harder to be Blackrock ver. 2 )
 
finicky said:
Just a chart, but I notice that recently a strong 2 year downtrend resistance line has been breached for MQG.
I checked Macquarie out because I've heard it is a bellwether for the Oz economy. I think G Canavan was the source of that, but to the contrary in recent times he's talked about the negative lag effect of a rising cycle of interest rates on the economy - a part of the backdrop for him lately reccing already smashed meat and potato stocks that pay a dividend or gold stocks. Bit confusing - MQG is improving but lag effect of interest rate hikes should depress the economy?

Not Held

WEEKLY
View attachment 170135
Click to expand...

Interesting times ahead, I'm now trying to work out my short and long term goals.

1713762091058.png


1713761965494.png
 
MACQUARIE GROUP ANNOUNCES $A3,522 MILLION FULL-YEAR PROFIT

Key Points

• FY24 net profit of $A3,522 million, down 32% on FY23; 2H24 net profit of $A2,107 million, up 49% on 1H24, down 27% on 2H23
• International income 66% of total income1 in FY24
• Assets under management of $A938.3 billion2 at 31 March 2024, up 7% from 31 March 2023 and up 5% from 30 September 2023
• Financial position comfortably exceeds regulatory minimum requirements –
Group capital surplus of $A10.7 billion3,4 –
Bank Level 2 CET1 ratio 13.6% (Harmonised5 : 18.7%);
Leverage ratio 5.2% (Harmonised5 : 5.9%); LCR 191%6 ; NSFR 115%6
• Return on equity (ROE) 10.8%, compared with 16.9% in FY23; 2H24 annualised ROE 12.9%
• Final ordinary dividend of $A3.85 per share (40% franked), FY24 ordinary dividend of $A6.40 per share (40% franked), representing a 2H24 payout ratio of 70% and FY24 payout ratio of 70%

SYDNEY, 3 May 2024 – Macquarie Group (ASX: MQG; ADR: MQBKY) today announced a net profit after tax attributable to ordinary shareholders of $A3,522 million for the year ended 31 March 2024 (FY24), down 32 per cent on the year ended 31 March 2023 (FY23). Profit for the half year ended 31 March 2024 (2H24) was $A2,107 million, up 49 per cent on the half year ended 30 September 2023 (1H24) and down 27 per cent on the half year ended 31 March 2023 (2H23).
Macquarie Group Managing Director and Chief Executive Officer, Shemara Wikramanayake, said: “Despite ongoing economic uncertainty and subdued market conditions in many parts of the world, Macquarie’s client franchises remained resilient over the last year, with continued client growth, fundraising and new business origination across the Group as we delivered our 55th consecutive year of profitability since inception.”
Annuity-style activities, which are undertaken by Macquarie Asset Management (MAM), Banking and Financial Services (BFS) and certain businesses in Commodities and Global Markets (CGM), generated a combined net profit contribution7
1 Where referenced in this document, total income is net operating income excluding Corporate items.
2 Macquarie Asset Management (MAM) Private Markets Assets under Management (AUM) includes equity yet to deploy and equity committed to assets but not yet deployed.
3 The Group capital surplus is the amount of capital above APRA regulatory requirements. Bank Group regulatory requirements are calculated in accordance with Prudential Standard APS 110 Capital Adequacy (APS 110), at 10.5% of RWA (Sep 23: 10.5%). This includes the industry minimum Tier 1 requirement of 6.0%, capital conservation buffer (CCB) of 3.75% and a countercyclical capital buffer (CCyB). The CCyB of the Bank Group at Mar 24 is 0.71% (Sep 23: 0.71%), this is rounded to 0.75% (Sep 23: 0.75%) for presentation purposes.
The individual CCyB varies by jurisdiction and the Bank Group CCyB is calculated as a weighted average based on exposures in different jurisdictions at period end.
4 The surplus reported includes provisions for internal capital buffers and differences between Level 1 and Level 2 requirements, including the $A500 million operational capital overlay imposed by APRA.
5 Basel III applies only to the Bank Group and not the Non-Bank Group.
‘Harmonised’ Basel III estimates are calculated in accordance with the updated Basel Committee on Banking Supervision (BCBS) Basel III framework, noting that MBL is not regulated by the BCBS and so impacts shown are indicative only.
6 Average LCR for March 2024 quarter is based on an average of daily observations. APRA imposed a 15% add-on to the Net Cash Outflow component of the LCR calculation, and a 1% decrease to the Available Stable Funding component of the NSFR calculation, effective from 1 April 2021.
The LCR Net Cash Outflow add-on increased to 25% from 1 May 2022. 7 Where referenced in this document, net profit contribution is management accounting profit before unallocated corporate costs, profit share and income tax.
Macquarie Group Limited 2 of $A3,014 million, down 27 per cent on FY23, which was primarily due to lower asset realisations in green investments and continued investment in the development of green energy portfolio companies in MAM.
Markets-facing activities, which are undertaken by Macquarie Capital and most businesses in CGM, delivered a combined net profit contribution of $A3,699 million, down 40 per cent on FY23, which was notably characterised by exceptional levels of volatility in commodity markets that drove a record FY23 performance from CGM.

Net operating income of $A16,887 million was down 12 per cent on FY23, while operating expenses of $A12,061 million were broadly in line with FY23. International income accounted for 66 per cent of Macquarie’s total income.
The income tax expense of $A1,291 million was down 29 per cent on FY23 and the effective tax rate was 26.8 per cent8 , up from 26.0 per cent in FY23. higher effective tax rate was mainly driven by the geographic composition and nature of earnings.
At 31 March 2024, the Group employed 20,666 people9 , which was up one per cent on 31 March 2023.
In addition, approximately 236,000 people were employed across managed fund assets and investments10 .
Assets under management at 31 March 2024 were $A938.3 billion2 , up seven per cent from $A878.6 billion at 31 March 2023, largely due to favourable market movements, investments made by MAM Private Markets-managed funds and favourable foreign exchange movements, partially offset by assets no longer managed as a result of a reduction of coinvestment management rights.
Operating Group performance MAM delivered a net profit contribution of $A1,208 million, down 48 per cent from $A2,342 million in FY23.
The result was primarily driven by lower asset realisations in green investments and increased net expenditure in investments in green energy portfolio companies operating on a standalone basis with base and performance fees broadly in line.
BFS delivered a net profit contribution of $A1,241 million, up three per cent from $A1,201 million in FY23.
The result reflected growth in the loan portfolio and BFS deposits11, and credit impairment reversals primarily reflecting an improvement in the macroeconomic outlook; partially offset by margin compression, higher employment expenses and increased technology investment to support portfolio growth, compliance and regulatory requirements.
CGM delivered a net profit contribution of $A3,213 million, down 47 per cent from $A6,007 million in FY23.
The overall result reflected substantially lower inventory management and trading income from a strong prior year in North American Gas and Power and a decreased contribution from Commodities risk management, primarily in EMEA Gas and Power, and Resources due to lower client hedging as volatility and price movements stabilised across commodity markets following record highs in the prior year.
Commodities income of $A3,516 million was up six per cent on the year ended 31 March 2022 (FY22).
Financial Markets had an increased contribution on the prior year with continued strong performance across major products and markets, particularly in foreign exchange and interest rate products, and an increased contribution from the Futures business.
Macquarie Capital delivered a net profit contribution of $A1,051 million, up 31 per cent from $A801 million in FY23.
The result reflected higher investment-related income driven by growth in the private credit portfolio, lower credit provisions and net impairment reversals, which was partially offset by lower net gains on investments including the nonrecurrence of material asset realisations and lower advisory fee income.

8 Calculation of the effective tax rate is after adjusting for the impact of non-controlling interests.
9 Includes staff employed in certain operationally segregated subsidiaries.
10 Includes people employed through MAM Private Markets-managed fund assets in Real Assets and investments where Macquarie Capital holds significant influence, including operationally segregated subsidiaries.
11 BFS deposits include home loan offset accounts.
Macquarie Group Limited 3 Capital management and funding position Macquarie’s financial position exceeds the Australian Prudential Regulation Authority’s (APRA’s) Basel III regulatory requirements, with a Group capital surplus of $A10.7 billion3,4 at 31 March 2024, down from $A12.6 billion at 31 March 2023.
The Bank Group APRA Basel III Level 2 Common Equity Tier 1 capital ratio was 13.6 per cent (Harmonised5 : 18.7 per cent) at 31 March 2024, down from 13.7 per cent (Harmonised5 : 18.4 per cent) at 31 March 2023.
The Bank Group’s APRA Leverage Ratio was 5.2 per cent (Harmonised5 : 5.9 per cent), the Liquidity Coverage Ratio (LCR) was 191 percent6 and the Net Stable Funding Ratio (NSFR) was 115 per cent6 at 31 March 2024.
Total customer deposits12 increased to $A148.3 billion at 31 March 2024, up from $A134.5 billion at 31 March 2023.
Term funding13 of $A21.1 billion was raised during FY24.
On-market share buyback On 3 November 2023, Macquarie announced that it intends to buy back up to $A2.0 billion of ordinary shares onmarket.
The buyback provides additional flexibility to manage the Group’s capital position and Macquarie retains the ability to vary, pause or terminate the buyback at any time.
As at 31 March 2024, a total of $A644 million of ordinary shares have been acquired on-market at an average price of $A183.26 per share.
FY24 final ordinary dividend The Macquarie Group Limited Board today announced a FY24 final ordinary dividend of $A3.85 per share (40 per cent franked).
This represents a total FY24 ordinary dividend of $A6.40 per share (40 per cent franked), 2H24 payout ratio of 70 per cent and FY24 payout ratio of 70 per cent.
Macquarie’s dividend policy remains at a 50 to 70 per cent annual payout ratio.
The record date for the final ordinary dividend is 14 May 2024 and the payment date is 2 July 2024.
Shares are to be acquired on-market to satisfy the Dividend Reinvestment Plan (DRP) for the FY24 final ordinary dividend14 .

Outlook

Macquarie continues to maintain a cautious stance, with a conservative approach to capital, funding and liquidity that positions it well to respond to the current environment.
The range of factors that may influence our short-term outlook include:
• Market conditions including global economic conditions, inflation and interest rates, significant volatility events, and the impact of geopolitical events
• Completion of period-end reviews and the completion of transactions
• The geographic composition of income and the impact of foreign exchange
• Potential tax or regulatory changes and tax uncertainties Ms Wikramanayake said: “Macquarie remains well-positioned to deliver superior performance in the medium term with its diverse business mix across annuity-style and markets-facing businesses; deep expertise across diverse sectors in major markets with structural growth tailwinds; patient adjacent growth across new products and new markets; ongoing investment in our operating platform; a strong and conservative balance sheet; and a proven risk management framework and culture.”

i hold MQG (' free-carried' )
 
Macquarie Group reported a 32% fall in year-over-year profits (not that $3.52 billion is anything to sneeze at).
  • H2 FY24 net profit +49% vs H1 FY24
  • International income is 66% of FY24 total income
  • AUM +7% year-over-year to $938.3 billion
  • Return on Equity (ROE) of 10.8%, well down from 16.9% in FY23
  • Final ordinary dividend of $3.85 per share, total full year payout of $6.40 per share
 

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