Macquarie beats expectations with record profit, raising A$1.5b capital

[SYDNEY] Australian financial conglomerate Macquarie Group on Friday beat expectations with a record first half profit - more than double the previous year's - powered by volatile commodity markets and said it would raise A$1.5 billion (S$1.52 billion) in capital.

The country's largest investment bank and asset manager posted double-digit growth compared to a year earlier in all its four units, which include a local bank and its commodities and global markets unit, which saw a 60 per cent rise in profit.

Chief executive Shemara Wikramanayake said that in the past two half year periods, Macquarie had deployed A$5.5 billion in capital in opportunities that provided superior returns relative to the risks.

"We're continuing to see these opportunities, so we think the capital raising will give us flexibility," she said.

The Sydney-based company said it would raise A$1.5 billion in a share placement at a price to be determined via a bookbuild on Friday, plus an extra amount via a shareholder offer.

The minimum price would start at A$190 per share, the company said, a 6 per cent discount to the record A$202.50 price Macquarie shares hit earlier this week.

The company said it would pay a A$2.72 per share dividend, or about 50 per cent of its profits.

Net profit hit A$2.04 billion in the six months to September, up from A$985 million a year ago, and in line with the prior half's A$2.03 billion.

Prices of natural gas soared in Europe and parts of Asia amid a global power crunch, boosting profit at Macquarie's commodities and markets business to A$1.73 billion.

As the second-biggest gas marketer in North America, Macquarie earned big profits for fiscal 2021 after a deep freeze in Texas sent gas prices surging.

The company did not provide guidance for the second half of fiscal 2022.

REUTERS