Macquarie bank’s revenue slows but a record year profit is in sight

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Macquarie Group’s revenue has slowed but the bank is still on track to post a record full year profit.

The first half was a big 58% rise in profit to $1.070 billion and today the bank said third quarter trading across the group was satisfactory.

The bank, in an outlook update, says the second half won’t be as good as the first half but it will be higher than the same six months the year before.

This puts the bank on track for a record full year profit of about $2 billion.

Macquarie will present at the Credit Suisse 19th Annual Asian Investment Conference in Hong Kong later this week.

In that presentation, this chart shows how a second half better than the same six months in 2015 would mean a record result for Macquarie.


Macquarie says it expects the 2016 full year to be higher than 2015 when the bank posted a 27% rise in net profit to $1.604 billion, its second best result on record.

The improved earnings are largely being driven by improved performance fees, foreign exchange gains and better trading conditions.

One big advantage, in the current economic climate, which the domestic banks don’t have is that a bigger share of Macquarie’s revenue comes from its overseas operations that from its domestic business.

Its international income accounts for more than 70% of total income.