Macquarie Group (MQG) is Australia’s largest investment bank, and is a leading provider of banking, financial advisory, investment, and funds management services. It is also one of the largest companies in the Australian stock market.
Recently, MQG announced its full year results. 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.
MQG’s strong profit result was widely cheered by stock market participants, with its share price rising 4% on the day of the announcement.