Macquarie CEO Shemara Wikramanayake says the energy supply crisis has boosted demand © Al Drago/Bloomberg
Australian financial services giant Macquarie Group has profited from volatility in global commodity markets, recording a full-year net profit of AU$4.7 billion (3.3 billion) dollars), an increase of 56% year-on-year.
The group’s global markets and commodities division was the biggest contributor to profits in the year ended March, as increased volatility boosted demand for insurance services. its risks and transactions. Earnings before corporate and tax expenses in that division jumped 50% to A$3.9 billion.
The decline in energy supplies, followed by increased volatility in energy and commodity markets arising from Russia’s invasion of Ukraine has driven this demand, said Chief Executive Officer Shemara Wikramanayake.
She said she did not expect the current financial year to produce such a strong result. But there is short-term uncertainty, she added.
“Our merchandise earnings are expected to drop significantly following the very strong results of [the fiscal year 2022], although volatility can create opportunities. We have a very uncertain year ahead,” she said.
Macquarie recorded strong results across all four divisions. Earnings from the investment banking arm, Macquarie Capital, nearly quadrupled to A$2.4 billion, driven by asset sales in the green energy, technology and business services sectors.
Earnings from its retail banking division rose 30% to AU$1.001 billion, while income from investment management division Macquarie Asset Management increased 4% to AU$2.15 billion.
Barrenjoey analyst Jon Mott said the “strong results” were 8% above market expectations. “Commodity strength, profit from sales from Green Investment Group, and strong global M&A activity are key drivers,” he said in a note.
Macquarie will pay a final dividend of $A3.50 per share.
