Macquarie Group share price higher after saying it expects 15% FY profit increase

Macquarie Group

The Macquarie Group (ASX:MQG) share price has gained $1.52 or 1.25% to $123.50 after saying it expects to make a record annual profit for a fourth straight year after flagging a 15 per cent improvement to its bottom line.

The wealth management and financial services group says a strong performance from Macquarie Capital, which advised on deals including Wesfarmers’ demerger of Coles, had contributed to “significant realisations” over the three months to December.

Macquarie last year lifted net profit 15.34 per cent to $2.557 billion.

Another 15 per cent increase in FY19 would drive profit to $2.94 billion, a more than 80 per cent improvement over five years.

Shemara Wikramanayake – who took over as chief executive in November – greeted Tuesday’s trading update in language indistinguishable from that used at successive profit announcements by her predecessor, Nicholas Moore.

“Macquarie remains well positioned to deliver superior performance in the medium term,” Ms Wikramanayake said.

“This is due to our deep expertise in major markets, strength in diversity and ability to adapt the portfolio mix to changing market conditions, as well as the ongoing benefits of continued cost initiatives, a strong and conservative balance sheet and a proven risk management framework and culture.”

Macquarie shares have more than doubled in value over the past three years.

With AAP

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