Macquarie Bank is heading for another record profit

  • Macquarie’s first half net profit of $1.31 billion, up 5%.
  • Net operating income of $5.83 billion, up 8%.
  • Interim dividend of $2.15, 45% franked, up 5%.

Shemara Wikramanayake, the CEO Designate of Macquarie Group, expects the bank to post a full year result 10% higher than last year’s record result.

The bank today posted a half year net profit of $1.31 billion, up 5% on the same six months last year, on net operating income of $5.83 billion, up 8%.

Macquarie Group last year posted a record full year net profit of $2.56 billion, a record and the 49th year in a row of profitability.

“While the impact of future market conditions makes forecasting difficult, the group currently expects the FY19 result to be up approximately 10% on FY18,” says Wikramanayake.

“Macquarie remains well-positioned to deliver superior performance in the medium term due to our deep expertise in major markets, strength in diversity and ability to adapt the 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.”

She is replacing Nicholas Moore as Managing Director and Chief Executive Officer on December 1.

Moore said: “The group remains well positioned, with a strong and diverse global platform and deep expertise across a range of products and asset classes. This is built on the foundation of a strong balance sheet, surplus capital, a robust liquidity and funding position and a conservative approach to risk management which is embedded across all operating groups.”

Macquarie announced today an interim ordinary dividend of $2.15 a share, 45% franked, up 5% on the the 2018 first half interim ordinary dividend.

The bank says it stopped buying shares under a buyback program because of significant business growth in the first half.

“There is currently no prospect of buying any shares under the share buyback program announced at the 1H18 result announcement and so the program has ended,” the bank said.

The half year numbers: