Macquarie Bank says it expects to end the 2018 financial year with a net profit profit 10% higher than last year’s record of $2.21 billion.
The guidance, up on previous forecasts, would mean three record profit years in a row for the investment bank.
In a third quarter trading update today, the group says net profit for the year to the end of March will be “slightly up” on the previous 12 months.
“Trading conditions across the group were satisfactory in the December 2017 quarter,” says Macquarie Group managing director and chief executive officer Nicholas Moore.
“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.”
Macquarie expects net profit in the second half to March to be broadly in line with the same half in 2017 because “substantial performance fees” were recognised in the first half of 2018.
However, the company says the full 2018 year is “currently expected to be up approximately 10%” on 2017.
Macquarie Asset Management had assets under management of $483.5 billion, up about 2% on a year ago.