Macquarie posts ‘record’ quarter on improved overall market conditions

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The world’s top infrastructure investor, which does not disclose profit figures in quarterly updates, said the net profit contribution from its commodities, markets and investment banking businesses rose “substantially” in the third quarter from a year earlier.

Macquarie said its commodities business benefited from more hedging and trading activity due to ongoing volatility in markets that had also helped the Sydney-based firm report a record first-half profit.

“We continue to maintain a cautious stance, with a conservative approach to capital, funding and liquidity that positions us well to respond to the current environment,” said Chief Executive Officer Shemara Wikramanayake.

The company said fee revenue at its investment banking business, Macquarie Capital, was “significantly up” after handling 126 transactions globally, valued at A$105 billion ($74.81 billion), with activity in the second half also expected to be high.

However, Macquarie said margins were being crimped at its banking business due to steep competition, a trend flagged by Westpac and Australia and New Zealand Banking Group in recent days, and likely to be echoed by the remaining two ‘Big Four’ lenders.

Macquarie will report full-year results on May 6.

($1 = 1.4035 Australian dollars)