Macquarie profit misses estimates as commodities unit weighs

Macquarie’s earnings missed estimates as profit from its commodities and global markets business dragged on the Australian firm’s performance.

Net income declined 32 per cent to $3.52 billion in the year to March 31, according to a statement Friday. That fell short of the $3.6b average projection from analysts surveyed by Bloomberg.

“Macquarie remains well-positioned to deliver superior performance in the medium term with its diverse business mix across annuity-style and markets-facing businesses,” chief executive Shemara Wikramanayake said in the statement.

The firm’s shares have been underperforming their global peers over the past year amid expectations for a soft result as volatility in energy markets subsided and a sluggish environment for mergers endured. Wall Street peers have posted a recent improvement in profitability and optimism’s grown for a boost in capital markets activity.

Macquarie’s commodities trading and hedging had become a major profit engine in recent years as companies across the world sought to protect against energy shocks amid wars in the Ukraine and the Middle East.

Profit contribution from that business fell 47 per cent on the prior year, the bank said.

The profit contribution from the firm’s asset management business posted a 48 per cent slump, according to the statement.

Bloomberg