Macquarie pumped up on fees
VOLATILE share markets amid a geopolitical firestorm have lit up Macquarie Group, which is expecting a beefed-up first-half result following a jump in performance fees.
But the heavyweight investment bank has warned its short-term fortunes will partly depend on potential moves by regulators and on tax “uncertainties”.
In an update yesterday, Macquarie said it expected its first-half performance would be up on the same period a year earlier, and “broadly in line” with the second half of the past financial year.
During that half, Macquarie delivered $1.17 billion in net profit en route to a record $2.22 billion full-year result.
Macquarie said it expects to at least match that tally this financial year, which runs to next March. Investors hopped on board on the revelation, sending Macquarie’s shares up 3 per cent to $85.15.
It was the biggest singlesession rally for Macquarie in more than four months, boosting its market value by $830 million, to $28.9 billion.
A major concern hinted at by the group will be the impact of the Federal Government’s banking tax, which aims to raise $6.2 billion from the nation’s five biggest banks during its first four years.