Share to Buy Macquarie Group LTD (MQG)

Macquarie Group (MQG) is Australia’s leading listed Investment bank and has offices all around the globe. The company is well diversified with six different operating groups:

  • Macquarie Capital: Includes corporate advisory, equity, debt and private capital markets businesses, and undertakes principal investing
  • Macquarie Securities: Activities include institutional and retail derivatives, structured equity finance, arbitrage trading, synthetic products, capital management, collateral management and securities, borrowing and lending
  • Fixed Income, Currencies and Commodities (FICC): Provides a variety of trading, research, sales and financing services across the world with an underlying specialisation in interest rates, commodities and foreign exchange
  • Macquarie Funds Group: Full-service asset manager
  • Banking and Financial Services: The primary relationship manager for Macquarie Group’s retail client base
  • Corporate and Asset Finance Group: The lending and leasing business of Macquarie Group

Big 1H14 result

MQG’s 1H14 results were a standout, with net profit of $503 million representing a 39% increase on 1H13 and beating analyst estimates. An interim dividend of $1 was declared, franked to 40c.

Revenue over the period was up 20% to $3.68 billion, with the funds management business a highlight.

Assets under management (AUM) were $385 billion at the end of September 30, up 11% from 2H13 and driving a corresponding 11% jump in Macquarie Funds earnings.

There was also a strong rebound at Macquarie Securities, which experienced a 23% surge in operating income from 2H13, as improved equity volumes led to increased commissions.