Macquarie Group Limited (ASX: MQG; ADR: MQBKY) today provided an update on business activity in the third quarter of the financial year ending 31 March 2018 (December 2017 quarter).
During a presentation at Macquarie’s Operational Briefing in Sydney today, Macquarie Group Managing Director and Chief Executive Officer Nicholas Moore said: “Trading conditions across the Group were satisfactory in the December 2017 quarter.”
Macquarie’s annuity-style businesses’ (Macquarie Asset Management, Corporate and Asset Finance and Banking and Financial Services) combined December 2017 quarter net profit contribution1 was slightly up on the December 2016 quarter. For the nine months ended December 2017, net profit contribution1 was up on the prior corresponding period mainly due to strong performance fees in Macquarie Asset Management, timing of transactions in Corporate and Asset Finance Principal Finance and continued growth in Banking and Financial Services.
Macquarie’s capital markets facing businesses’ (Commodities and Global Markets and Macquarie Capital) combined December 2017 quarter net profit contribution was down on the prior corresponding period primarily due to timing of income recognition associated with transportation and storage agreements within the Commodities and Global Markets business. For the nine months ended December 2017, net profit contribution was down on the nine months ended December 2016 primarily due to timing of income recognition associated with transportation and storage agreements within the Commodities and Global Markets business.
Macquarie Group’s financial position comfortably exceeds APRA’s Basel III regulatory requirements, with Group capital surplus of $A4.1 billion at 31 December 2017, broadly in line with 30 September 2017. The Bank Group’s APRA Basel III Common Equity Tier 1 capital ratio was 10.7 per cent (Harmonised: 13.0 per cent) at 31 December 2017, down from 11.0 per cent at 30 September 2017. The Bank Group’s APRA leverage ratio was 5.8 per cent (Harmonised: 6.6 per cent), average LCR was 153 per cent and NSFR was 109 per cent at 31 December 2017.
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