Macquarie Group (ASX:MQG)'s net earnings exceed forecasts by $170m

Company News

by Michael Luu

Investment bank Macquarie Group (ASX:MQG) revealed that the business achieved a 10 per cent increase year on year in net earnings to $3.02 billion for the fiscal year.

The result has exceeded predictions by $170 million, as the company raked in a share premium of $8.8 billion.

The group sourced 68 per cent of its total annual revenue from international business dealings.

Chief executive Shemara Wikramanayake attributed the company’s headway against coronavirus-induced challenges to the “diversity of our activities and ongoing focus on prudent risk management”.

Taking all factors into consideration, the Macquarie has announced it will reward shareholders with a payout of $3.35, as the dividend component accounts for 60 per cent of profits.

However, the Macquarie Group also experienced some modest downsides. The $58 billion provider of financial services recorded a 0.2 per cent decrease year on year in returns on equity. Meanwhile, its portfolio of assets under management also contracted by 6 per cent.

In terms of Macquarie's investment outlook, the financial giant has announced its intention to withdraw investment from coal enterprises by 2024 and maintain its investments in the oil and gas sector. The investment bank plans to honour its commitment to climate change mitigation by using financial influence to reduce carbon emissions by affiliated companies .

Shares in Macquarie Group (ASX:MQG) last traded at $159.00