Macquarie had benefitted from volatile energy prices and supply in Europe since Russia invaded Ukraine in February 2022, and from extreme weather events in the United States, Macquarie chief executive Shemara Wikramanayake said on a call with analysts. — Reuters
SYDNEY: Australian investment bank Macquarie Group Ltd says that profit in the first nine months is tracking ahead of the previous year, setting the stage for a possible record annual result as it benefits from volatile energy markets.
Russia’s invasion of Ukraine and unusual weather in North America have turned Macquarie’s oil, gas and power trading unit into an earnings powerhouse, even when prices fall, because of heightened levels of trading and client risk management.
In a limited third-quarter update, Macquarie said its Commodities and Global Markets (CGM) unit, its biggest earner, produced “exceptionally strong results” in the three months to Dec 31.
This was even as profit from its asset management business was “substantially down” and fees in its capital management business fell amid slower dealmaking.
All up, net profit in the nine months to Dec 31 was slightly higher than the same period a year earlier, the Sydney-listed financial firm said, without providing figures. The bank, due to report full-year results in May, booked a record profit in 2022.
UBS analysts said the update was better than expected, with the financial conglomerate benefiting from its diverse global footprint.
The company’s shares rose as much as 4% in a flat overall market, before settling 1.5% higher by mid-session.
Macquarie had benefitted from volatile energy prices and supply in Europe since Russia invaded Ukraine in February 2022, and from extreme weather events in the United States, Macquarie chief executive Shemara Wikramanayake said on a call with analysts.
“The bigger issue is volatility,” she said. “As long as there is movement, it benefits the CGM business.” The trading update also demonstrated the advantage of Macquarie’s strategy of diversification across financial sectors, she said. — Reuters
