In­vest­ment firm on track to equal its record re­sult

Mac­quarie lifts bar

Townsville Bulletin - - NEWS -

MAC­QUARIE Group has lifted its full- year guid­ance, putting the in­vest­ment com­pany on track for one of the best re­sults in its history.

Mac­quarie Group said on Thurs­day it ex­pected its 2015- 16 profit to be above the $ 1.6 bil­lion re­sult it posted for the year to March. An­a­lysts ex­pect the com­pany to make a $ 1.8 bil­lion profit for 2015- 16, which would equal the record re­sult it posted in 2008, just be­fore the global fi­nan­cial cri­sis.

Mac­quarie had pre­vi­ously said it ex­pected its full- year profit would be only slightly higher, with a lower tax rate off­set­ting what it be­lieved would be a flat per­for­mance across its di­vi­sions. The im­proved guid­ance is based on a stronger out­look for the com­pany’s as­set man­age­ment busi­ness, which ben­e­fited from an in­crease in per­for­mance fees dur­ing the first quar­ter, as well as the lower Aus­tralian dol­lar.

“As a re­sult, we ex­pect the group re­sult to be up on where we were last year,” chief ex­ec­u­tive Ni­cholas Moore told share­hold­ers at the com­pany’s an­nual gen­eral meet­ing on Thurs­day. The com­pany has not changed the out­look for its other di­vi­sions, which are all ex­pected to pro­duce a flat or stronger re­sult for the year.

Mac­quarie has de­vel­oped a rep­u­ta­tion for un­der- promis­ing and over- de­liv­er­ing un­der Mr Moore: it flagged a flat re­sult at the be­gin­ning of last year but ended up lift­ing its profit 27 per cent. Mean­while, the com­pany says it has paid out $ 11 mil­lion in com­pen­sa­tion to clients af­fected by a scan­dal in its wealth man­age­ment di­vi­sion.

Mac­quarie en­tered into an en­force­able un­der­tak­ing with the Aus­tralian Se­cu­ri­ties and In­vest­ments Com­mis­sion to im­prove pro­cesses and train­ing in the di­vi­sion.

“We are sat­is­fied that the Mac­quarie Pri­vate Wealth busi­ness has been trans­formed in terms of its com­pli­ance prac­tices and pro­cesses,” chair­man Kevin McCann told share­hold­ers at the com­pany’s an­nual gen­eral meet­ing in Syd­ney.

IM­PROVED OUT­LOOK: Mac­quarie Group chief ex­ec­u­tive Ni­cholas Moore.

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