Volatility Helps Macquarie to a Record Profit, but Disappoints on the Dividend

Macquarie’s fiscal 2021 profit increased 10% to AUD 3 billion, as we expected hitting the top-end of the 5% to 10% guidance range. It was a tale of two halves, with second-half fiscal 2021 doubling the first-half result. This result supports our view first-half challenges do not reflect any structural challenges or degradation of the longer-term earnings potential of the group. Earnings can be volatile given the timing of divestments and crystallisation of gains, with parts of the business also reliant on levels of market activity, and others benefiting from volatility.