Macquarie Still Expects Higher FY Earnings as Funds Unit Gains
Higher funds management fees and a weaker Australian dollar will boost earnings while the group’s fixed income, currencies and commodities unit will be broadly in line with the previous year, the Sydney-based group said in a statement ahead of its annual shareholders meeting. Macquarie in May posted profit for the 12 months ended March 31 of A$851 million ($779 million).
Macquarie is gaining from a 12 percent decline in the Australian dollar since March 31. A 10 percent fall in the Australian currency would add about 6 percent to the group’s annual net income, Chief Executive Officer Nicholas Moore said in today’s statement.
“The broad underlying drivers are pointing to the early stages of an upward trend for Macquarie,” Angus Gluskie, chief investment officer at White Funds Management Pty Ltd., said before the announcement. “An increase in revenue in a potentially lower-cost environment will give profits a boost.” White Funds owns shares in the bank.
Macquarie didn’t alter its full year forecasts for other operating groups.
To contact the reporter on this story: Narayanan Somasundaram in Sydney at email@example.com
To contact the editor responsible for this story: Chitra Somayaji at firstname.lastname@example.org