Macquarie Says Divisional 3Q Net Profit Falls Back

By Alice Uribe

SYDNEY-- Macquarie Group said its underlying client franchises remained resilient, despite net profit falling back in the third quarter across its main business units.

Australia's largest investment bank and asset manager said in an operational briefing Tuesday that its net profit for the nine months through December was substantially down on a year ago.

"Underlying client franchises were resilient in ongoing uncertain conditions with continued customer growth, fundraising and new business origination a feature across all of our businesses," said Chief Executive Shemara Wikramanayake.

Macquarie said that the same period in fiscal 2023 included an exceptional quarterly result in the third quarter.

For Macquarie's annuity-style businesses, which encompass Macquarie Asset Management and Banking and Financial Services, net profit was down in the three months to December compared to a year earlier.

For the nine months to December, net profit from those annuity-style businesses was substantially down on the corresponding period of a year ago. Macquarie said this was mainly due to lower asset realizations in green investments and continued investment in the development of green energy portfolio companies in MAM.

The combined net profit of Macquarie's markets-facing businesses, which spans Commodities and Global Markets and Macquarie Capital, was substantially down compared to the third quarter a year ago.

For the nine months to December, those businesses' net profit contribution was substantially down, Macquarie said.

Macquarie said its group capital surplus sat at 9.7 billion Australian dollars (US$6.34 billion).

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

(END) Dow Jones Newswires

February 12, 2024 16:48 ET (21:48 GMT)

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