{"id":40925,"date":"2023-11-03T00:27:34","date_gmt":"2023-11-03T00:27:34","guid":{"rendered":"https:\/\/prosfunds.com\/markets\/stocks\/australias-macquarie-to-buy-back-shares-as-profit-slips-to-three-year-low\/"},"modified":"2023-11-03T00:27:36","modified_gmt":"2023-11-03T00:27:36","slug":"australias-macquarie-to-buy-back-shares-as-profit-slips-to-three-year-low","status":"publish","type":"post","link":"https:\/\/prosfunds.com\/?p=40925","title":{"rendered":"Australia’s Macquarie to buy back shares as profit slips to three-year low"},"content":{"rendered":"
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\u00a9 Reuters. FILE PHOTO: The logo of Australia’s biggest investment bank Macquarie Group Ltd adorns the main entrance to their Sydney office headquarters in Australia, October 28, 2016. Picture taken October 28, 2016. REUTERS\/David Gray\/File Photo<\/span>
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By Lewis Jackson and Roushni Nair<\/p>\n

SYDNEY (Reuters) -Australia’s Macquarie Group (OTC:) on Friday reported its lowest half-year profit in three years, with first-half earnings down 39% to pre-pandemic levels due to rising costs and declines in its commodity trading and asset management segments.<\/p>\n

Macquarie had already trimmed its earnings forecasts twice since its record fiscal 2023 results announced in May, but the A$1.42 billion ($913.49 million) profit for the half ended Sept. 30 was well below a consensus estimate of A$1.77 billion compiled by Citi.<\/p>\n

It was biggest percentage profit decline in more than a decade amid less volatility in commodity prices and higher costs in all divisions with total staff numbers rising 10% from a year earlier. Shares fell as much as 3% in early trading before regaining ground to trade flat.<\/p>\n

Macquarie said in a statement the financial conglomerate maintained a cautious stance and was conservatively positioned. <\/p>\n

Despite the weaker result, the company’s board approved an on-market share buyback of up to A$2 billion and declared an interim dividend of A$2.55 per share, citing its ability to return excess capital to investors.<\/p>\n

UBS said in a note the results would lead markets to further cut earnings forecasts.<\/p>\n

“The only silver lining, in our view, is the buyback, which might indicate Macquarie view the stock as undervalued,” UBS said.<\/p>\n

The company’s A$A892 billion asset management division led the earnings decline, with profits down 71% to A$407 million, roughly half the level tipped by analysts. Macquarie pinned the fall on rising expenses and its decision to hold off on green asset sales.<\/p>\n

Macquarie said the division’s income should rebound somewhat to around the A$940 million mark it reported in the last half as it booked asset sales.<\/p>\n

Profits in the heavyweight commodities and global markets segment fell 31% to A$1,4 billion as a degree of normalcy returned to energy markets after the chaos last year unleashed by Russia’s invasion of Ukraine.<\/p>\n

The company said fees and commissions at investment banking arm Macquarie Capital were in line with the previous comparable period. Profit fell 28% to A$430 million. <\/p>\n

Despite a global dealmaking drought, the division guided to full-year transaction activity in line with the prior financial year.<\/p>\n

Earnings in the banking and financial services division, home to Australia’s fifth-largest retail mortgage business, were a rare bright spot and rose 10% to A$638 million on the back of loan growth and stronger margins.<\/p>\n

($1 = 1.5550 Australian dollars)<\/p>\n<\/div>\n

Read the full article here<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

\u00a9 Reuters. FILE PHOTO: The logo of Australia’s biggest investment bank Macquarie Group Ltd adorns the main entrance to their Sydney office headquarters in Australia, October 28, 2016. Picture taken October 28, 2016. REUTERS\/David Gray\/File Photo By Lewis Jackson and Roushni Nair SYDNEY (Reuters) -Australia’s Macquarie Group (OTC:) on Friday reported its lowest half-year profit […]<\/p>\n","protected":false},"author":1,"featured_media":8281,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"content-type":"","footnotes":""},"categories":[37],"tags":[],"class_list":{"0":"post-40925","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-stocks"},"yoast_head":"\nAustralia's Macquarie to buy back shares as profit slips to three-year low | Prosfunds<\/title>\n<meta name=\"description\" content=\"\u00a9 Reuters. 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