A second upgrade to Macquarie’s (MQG) interim results yesterday, just over two weeks before the bank rules off its interim financial results. The first upgrade came at the annual meeting in late July, the second yesterday at an investment conference in Hong Kong (a regular event for Macquarie updates at this time of year).
Macquarie said in a statement to the ASX profit would jump 40% in the six months ended September 30, thanks to the weaker dollar and rising market volatility (which is usually good for investment banks with solid trading desks).
Macquarie shares rose 2.3% to $77.57.
MQG 1Y – Macquarie upgrades guidance
Macquarie said the strong performance in its first-half ended September 30 would be due to improved conditions across businesses including Macquarie Securities, its equities arm, and Macquarie Asset Management which benefited from “strong performance fees” and the falling Australian dollar.
Macquarie said its second half result would be “broadly in line” with the six months ended September 30, and that its asset management division would generate lower performance fees in the March half year. The company also cautioned that the outlook was subject to conditions including market conditions and fluctuations in currencies.
"Over the medium term, Macquarie remains well positioned to deliver superior performance. The Group has deep expertise in major markets and we continue to build on our strength in diversity and adapt our portfolio mix to changing market conditions,” Macquarie said in yesterday’s statement.
"We are seeing the ongoing benefits of continued cost initiatives, our balance sheet is strong and conservative, and we have a proven risk management framework and culture."
Macquarie stuck to its previous guidance for the full year ended March 31, 2016, reiterating that profit would be up on this year’s $1.6 billion result. The guidance provided yesterday was more bullish in tone than previously.