Australian Shares To Watch Macquarie Group (MQG)

Australian Shares Macquarie Group (MQG)                                                 30 April 2010

Macquarie Group (MQG) is a leading investment bank with a market capitalisation of $16 billion. It provides banking, financial advisory, investment and funds management services to both retail and institutional clients.

In Australian share news, MQG announced its full year results today.  FY10 net profit rose 21% to $1.05 billion, slightly exceeding analyst expectations of a net profit of $1.02 billion.

Driving the increase was a solid performance across MQG’s securities, fixed income, currencies, and commodities divisions, as well as a reduction in impairments charges.

Of concern, return on equity was largely flat at 10% while capital was $4 billion in excess of regulatory requirements, suggesting that MQG needs to ramp up the deployment of its surplus capital.

Although management maintains an uncertain market outlook, it still expects improved operating results across all of MQG’s businesses in FY11.

A final dividend of $1 per share was declared.

The Australian share price for MQG has seesawed since October 2009, trading between $45-53. MQG share price last closed at $50.29.