Macquarie posts profit lift but misses estimates on downbeat commodities unit

(Reuters) - Macquarie posted a rise first-half profit on Friday, driven by a surge in earnings from its asset management division, but missed market consensus after its key commodity facing business took a hit due to subdued volatility in energy markets.

The company benefited from better deal-making realisations, which offset lower contribution from the commodities business. Macquarie's asset management division had previously experienced a decline in earnings due to dampened investor sentiment caused by extended higher borrowing costs.

The wealth management unit reported a jump in first-half profit on the back of higher performance fees and improved realisations.

The conglomerate also said the progress in its banking operations digitalisation programme helped boost earnings, adding that the results reflected ongoing benefits of its diverse business mix.

Macquarie's Commodities and Global Markets business, however, recorded a drop in half-year profit due to subdued volatility in energy markets amid tepid market demand.

"Macquarie continues to maintain a cautious stance, with a conservative approach to capital, funding and liquidity that positions it well to respond to the current environment," the company said.

The Australian financial giant's profit attributable for the six months ended Sept. 30 came in at A$1.61 billion ($1.06 billion), missing a consensus estimate of A$1.73 billion, according to Visible Alpha. It also declared an interim dividend of A$2.60 apiece.

The firm recorded a profit attributable of A$1.42 billion last year.



It also approved the extension of its ongoing A$2 billion buyback for an additional 12-month period.

($1 = 1.5198 Australian dollars)

Source: Investing.com