CANBERA (dpa-AFX) - Macquarie Group Limited (MQG.AX, MQBKY.PK) said that its operating groups were impacted by mixed trading conditions, with their contribution in the first-quarter of 2021 slightly down on the first quarter of the 2020 financial year. It is currently unable to provide meaningful earnings guidance for the year ahead.
Ahead of its 2020 Annual General Meeting, held virtually. Macquarie Group Managing Director and Chief Executive Officer, Shemara Wikramanayake said that market conditions are likely to remain challenging, especially given the significant and unprecedented uncertainty caused by the worldwide impact of COVID-19 and the uncertain speed of the global economic recovery. The conditions will impact overall fiscal year 2021 profitability is uncertain, making short-term forecasting extremely difficult.
However, Wikramanayake said that the company remains well positioned to deliver superior performance in the medium term due to its deep expertise in major markets.
Macquarie Capital's fee revenue was down on the first-quarter of 2020 due to lower fee revenue from Mergers & Acquisitions and Debt Capital Markets, largely offset by increased Equity Capital Markets activity and strong performance of the Equities platform.
Macquarie's annuity-style businesses were up on the prior year with Macquarie Asset Management (MAM) up primarily due to the sale of its rail operating lease business, partially offset by lower income in Banking and Financial Services (BFS) which included higher provisions.
Macquarie's markets-facing businesses were down on the prior yearprimarily due to significantly lower investment-related income in Macquarie Capital, partially offset by stronger contributions from certain divisions in Commodities and Global Markets.
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