Macquarie Group 1Q Profit In Line With Expectations

By Alice Uribe

SYDNEY--Macquarie Group, Australia's biggest investment bank and asset manager, said its operating group performance for the first quarter was consistent with expectations.

In comments ahead of its annual shareholder meeting on Thursday, Macquarie Group said the contribution of its operating group to net profit during the three months through June--a measure of earnings before some corporate costs, profit share and income tax--was broadly in line with the first quarter of fiscal 2024.

Macquarie Group said the contribution to net profit of its annuity-style businesses was broadly in line compared to a year ago, driven by volume growth, lower operating expenses and lower credit impairment charges in its banking unit.

The contribution to net profit of the company's markets-facing businesses was down on the previous year, primarily due to timing of asset realizations in Macquarie Capital. This was partially offset by a continued contribution across the platform in the commodities unit.

In the banking unit, Macquarie reported deposits of 145.3 billion Australian dollars (US$95.6 billion) at end-June. This was up 2% on end-March. The home-loan portfolio of A$123.7 billion was up 4% compared with end-March.

The company said its financial position comfortably exceeded regulatory minimum requirements, with a group capital surplus of A$8.2 billion at the end of June, down from A$10.7 billion at end-March.

Write to Alice Uribe at alice.uribe@wsj.com

(END) Dow Jones Newswires

July 24, 2024 19:00 ET (23:00 GMT)

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