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Not too unhappy so far..my only bank in portfolio
Not too unhappy so far..my only bank in portfolioMacquarie 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
the entry point has a lot to do with one's opinion heresome thoughts on the fifth pillar.
.
Macquarie Group faces challenges despite improved performance
By Glenn Dyer | More Articles by Glenn Dyer
Times are still tough for Macquarie Group (ASX:MQG), despite a pickup in some of its businesses in the June quarter compared to last year. Ahead of the AGM on Thursday, the investment bank and fund manager said its commodities and global markets' first-quarter performance improved from last year due to increased trading activity in North American gas, power, and emissions markets, as well as strong results in the agriculture and resources sectors.
However, it reported that the combined net profit contribution from its market-facing businesses for the June quarter fell from last year, mainly because of the timing of asset realizations in Macquarie Capital. (In other words, it can’t offload assets flagged for sale.) Investors didn’t respond favorably to the update, sending the shares down 3.8% by just before 11 am Sydney time.
The company noted that its annuity-style businesses' combined quarterly contribution was broadly in line during the quarter, thanks to volume growth, lower operating expenses, and reduced credit impairment charges in banking and financial services (which have recently been a focus for growth).
Macquarie Asset Management oversaw A$915.00 billion worth of assets as of the end of June, down 2% from March-end. As usual, Macquarie did not disclose profit figures in the quarterly update but claimed its first-quarter operating group contribution was broadly in line with last year (though we have no way of verifying this).
As it has been emphasizing for some time, the company continues to maintain a cautious stance with a conservative approach to capital, funding, and liquidity, positioning itself well to respond to the current environment. Additionally, it remains "well-positioned to deliver superior performance in the medium term due to its diverse business mix across annuity-style and market-facing businesses.”
In other words, Macquarie remains a bank for all seasons and markets.
.......
even though the donut has done well with a diverse mix, it faces a dilemma of where to now? A big player here, relevance is found only in niche sectors on the international stage, and the big and powerful institutions in US, Europe and Asia swamp any efforts to become one of them (if that's the intention).
I've held in the past then sold at the wrong time - GFC and their leverage made for volatile times. But now, as MQG features strongly in the LICs I hold, there's probably enough exposure there.
my dream is $20 ( again )Sold MQG at closing yesterday so now will it drop to $180..some member may said..."in your dream"
May my Dream happen in October
but , but MQG buys out and totally exploits Green project funding entities and will trade almost anything ( including i suspect carbon credits ) MQG has released a range of ETFs ( including bond-focused ETFs )
but , but MQG buys out and totally exploits Green project funding entities and will trade almost anything ( including i suspect carbon credits ) MQG has released a range of ETFs ( including bond-focused ETFs )
as long as you have borrowing , lending and trading MQG should be able to make a profit
Vampire Squid is i think the name that is given to them in Europe .They have their fingers in a few more pies than that. Such as -
Macquarie Group’s stellar $24bn divestment of AirTrunk may deliver it hefty performance fees as high as $1.3bn and stoke further demand for digital infrastructure assets, if lofty valuations don’t put them out of reach.While difficult to estimate, given Macquarie’s 60 per cent holding in AirTrunk was held via its second Asia-Pacific Infrastructure Fund, bank analysts expect Macquarie will enjoy a huge payday on the AirTrunk sale to Blackstone and Canada Pension Plan Investment Board.The transaction, worth more than $24bn and announced late on Wednesday, included capital expenditure for committed AirTrunk projects. Macquarie’s fund and PSP Investments will reap huge gains on their 2020 investment in AirTrunk, which at the time valued the company at just $3bn.AirTrunk came onto Macquarie’s radar several years ahead of it snapping up the assets.
Amongst other long term investments and projects.
My only direct bank investment..and the best cash return vs big banks in Oz for a business entityThey have their fingers in a few more pies than that. Such as -
Macquarie Group’s stellar $24bn divestment of AirTrunk may deliver it hefty performance fees as high as $1.3bn and stoke further demand for digital infrastructure assets, if lofty valuations don’t put them out of reach.While difficult to estimate, given Macquarie’s 60 per cent holding in AirTrunk was held via its second Asia-Pacific Infrastructure Fund, bank analysts expect Macquarie will enjoy a huge payday on the AirTrunk sale to Blackstone and Canada Pension Plan Investment Board.The transaction, worth more than $24bn and announced late on Wednesday, included capital expenditure for committed AirTrunk projects. Macquarie’s fund and PSP Investments will reap huge gains on their 2020 investment in AirTrunk, which at the time valued the company at just $3bn.AirTrunk came onto Macquarie’s radar several years ahead of it snapping up the assets.
Amongst other long term investments and projects.
☹missed the bus.Good morning
Reported via News Corp media today (26/09/24):
Morgan Stanley’s Andrew Stadnik still looks to be the most bullish sell-side analyst on Macquarie Group after raising his 12-month price target from $234 to $250.
“We think Macquarie offers multi-year double digit earnings growth, justifying the recent re-rating,” Mr Stadnik says.
“The faster Fed cut gives us more confidence in global M&A recovery and we think the street is missing Macquarie’s operating leverage plus new growth options.”
Not holding
Kind regards
rcw1
' @mullokintyreMQG is one of my picks in the 2025 Yearly Comp @mullokintyre . It is an international financial entity and is engaged in activities like those of global financial groups providing clients with asset management and finance, banking, advisory and risk and capital solutions across debt, equity and commodities. So it is not like other banks on the ASX.
It pays a 35% franked 2.8% dividend and is mainly bought for growth. It is very much exposed to the sentiment of large financial institutions overseas particularly in the US. The latter atm. are flavour of the month on the NYSE.
It has given holders a 60% gain in the past 12 months.
A chart.
View attachment 191388
gg
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