Macquarie Group Ltd (ASX:MQG) has shaved more than 30 percent off its net profit in the final quarter of the 2024 financial year (FY 2024), compared to the same time last year, with executives speaking cautiously about market volatility and ‘lower asset realisations’ from green investments, but also noting a seven percent rise in assets under management.
Overall profit for the financial services group in the year ending March 31 2024 was $A3,522 million, a fall of 32 percent from the year ending March 31 2023.
There was also a fall of 27 percent (to $A3,014 million) seen in Macquarie’s annuity-style activities, with this registering in Macquarie Asset Management (MAM), Banking and Financial Services (BFS) and within some businesses in Commodities and Global Markets (CGM).
This was where the impact of ‘green investments’ was felt, particularly the investment in development of green energy portfolios in MAM.
Market-facing activities undertaken by Macquarie also saw a profit fall of 40 percent in FY 2024 (to $A3,699 million), compared to FY 2023, although the bank noted that the latter’s results had themselves reached record levels due to major instability on the markets during that time.
However, they noted an increase of seven percent in its assets under management during the period: these being $A938.3 billion, up from $A878.6 billion at 31 March 2023, which was put down to positive movements on the market as well as favourable developments in foreign exchange and investments made by MAM Private Markets-managed funds.
Macquarie Group Managing Director and Chief Executive Officer Shemara Wikramanayake observed that the bank had remained a profit-maker despite some difficult external headwinds.
“Despite ongoing economic uncertainty and subdued market conditions in many parts of the world, Macquarie’s client franchises remained resilient over the last year, with continued client growth, fundraising and new business origination across the Group as we delivered our 55th consecutive year of profitability since inception,” she said.
Shares in Macquarie Group fell throughout the day on the news, ultimately dropping by 2.372 percent to $183.54 by market close.