Macquarie Group beat full-year profit guidance but its share price has slumped on a subdued outlook for the next 12 months.
Macquarie announced a 17 per cent lift in full-year net profit to a record $2.98 billion on Friday, having flagged a 15 per cent rise in February.
But managing director and chief executive officer Shemara Wikramanayake said on Friday that FY20 was “expected to be slightly down”. Macquarie shares were trading 5.95 per cent lower at $128.10 by 1101 AEST.
Ms Wikramanayake said the company was awaiting further regulatory change, while foreign exchange impacts, tax uncertainties and changing market conditions could also weigh in the short term.
“Macquarie remains well positioned to deliver superior performance in the medium term,” Ms Wikramanayake said.
Total group net profit was up 17 per cent from $2.56 billion a year ago, marking 50 years of unbroken profitability for the company.
Net profit from the Macquarie Capital unit rose 89 per cent to $1.35 billion for the 12 months to March 31, while net profit from commodities and global markets jumped 65 per cent to $1.51 billion as the group’s soaring market-facing unit offset a slight dip across its annuity-style businesses.
Combined profit from Macquarie Asset Management, corporate and asset finance, and banking services fell four per cent to $3.29 billion.
Assets under management rose 11 per cent to $551.3 billion for the year to March 31 and the group lifted its final dividend 40 cents to $3.60, partially franked.
Meanwhile, the group’s annual report, also released on Friday, showed former chief executive Nicholas Moore got a $27.94 million payday when he departed the role in November.
That figure was up from $19.7 million in 2018 after equity awards and share-based payments were brought forward.
Ms Wikramanayake’s total remuneration dropped from $18.89 million to $18.04 million in 2019, including a reduction in performance-related remuneration from $4.76 million to $4.28 million.
She earned less than Macquarie’s former head of commodities and global markets, Andrew Downe, whose pay for 2019 rose to $18.29 million from $15.21 million last year.
Macquarie said this rise was because of “exchange rate movements” as Mr Downe is paid in Singapore dollars.
Mr Downe currently leads the global cash equities business and maintains regional leadership for CGM in Asia.
MACQUARIE’S FY RESULTS
* Net profit up 17pct to $2.98b
* Income up 17pct to $12.75b
* Final dividend up 40 cents to $3.60, partially franked.