Analysts have called on Macquarie Group Limited (ASX:MQG) to buy back its shares following sharp falls in its share price.
Fairfax Media says analysts at rival investment bank UBS have told clients that a share buyback would be a more efficient use of funds than paying a dividend, as it would boost the bank’s sagging share price.
Macquarie is Australia's largest investment bank and its share price has recently slumped to 2.5 year lows.
According to Fairfax, the bank’s $8.4 billion market capitalisation equates to only around 70 per cent of the book value of its assets.
Macquarie Group recorded a net profit of $989 million in the 2011 financial year.
