Macquarie profit jumps to $4.7b, hikes dividend

Macquarie Group has reported soaring full-year profits and shareholders will receive a hiked dividend in another strong set of results for the investment powerhouse, but chief executive Shemara Wikramanayake has urged caution amid volatile market conditions.

Macquarie Group on Friday reported net profits of $4.7 billion in the 12 months to March 31, up 56 per cent on the prior period, and its assets under management swelled by 37 per cent to $774.8 billion.

Macquare Group chief executive Shemara Wikramanayake.

The headline profit was largely driven by a 92 per cent increase in profit contribution of $5.3 billion in Macquarie’s market-facing activities, such as Macquarie Capital and its Commodities and Global Markets businesses.

Shareholders will receive a final ordinary dividend of $3.50 per share, 40 per cent franked, an increase of 15¢ from the last financial year.

Macquarie said it will retain a conservative approach to capital, due to the significant volatility in markets caused by inflation, interest rates and uncertain geopolitics.

Chief executive Shemara Wikramanayake said the strong performance was a result of “deep and differentiated” franchises in each of the group’s areas of activity.

“While many of the regions and markets in which Macquarie operates saw heightened levels of volatility this year, our longstanding strategy to address key areas of unmet need in the community is unchanged,” she said.

“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.”

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