The Macquarie Group Ltd (ASX: MQG) share price is down 1.1% in morning trade today.
Shares in the diversified S&P/ASX 200 Index (ASX: XJO) financial stock closed yesterday trading for $177.74. Shares are currently swapping hands for $175.81.
It's not just the Macquarie share price coming under selling pressure today.
At time of writing the S&P/ASX 200 Financials Index (ASX: XFJ) is down 1.3%, likely due to the ongoing banking crisis in the United States.
This morning Macquarie released its full-year results for the year ended 31 March (FY23).
Here are the highlights.
(*Note, all prices are in Aussie dollars.)
Profit growth fails to lift Macquarie share price today
- Net profit of $5.18 billion, up 10% from FY22
- Second half FY23 (2H23) profit of $2.88 billion, up 25% on 1H23,
- Assets under management increased 10% year on year to $870.8 billion
- Return on equity (ROE) 16.9%, down from 18.7% in FY22
- Final dividend of $4.50 per share, 40% franked, bringing the full-year dividend to $7.50 per share, up from $6.22 per share in FY22
What else happened over the year?
Macquarie reported a 10% boost in net operating income from the prior year of $19.12 billion.
Operating expenses were also up, increasing 12% year on year to $12.12 billion. The company said international income accounted for 71% of its total income over the year.
The Macquarie share price may be getting some support today from the company's strong financial position, which management said "comfortably exceeds regulatory minimum requirements". Macquarie had a capital surplus of $12.6 billion and a bank CET1 Level 2 ratio of 13.7%.
The financial company also announced Susan Lloyd-Hurwitz will be joining the board on 1 June, subject to necessary approvals. She has more than 30 years of global investment and real estate experience. That includes her recent 10-year stint as the CEO of investment company Mirvac.
What did management say?
Commenting on the results that have failed to push the Macquarie share price higher today, CEO Shemara Wikramanayake said:
Against a less certain market and economic backdrop, the diversity of Macquarie's activities and the expertise of our teams ensured we maintained strong performance during the year.
What's next?
Looking at what might impact the Macquarie share price in the months ahead, the company said it would continue with its "cautious stance" and take a conservative approach to capital, funding and liquidity, enabling it to respond effectively to the current environment.
Among the factors that could impact the short-term outlook, Macquarie listed global economic conditions, inflation and interest rates, significant volatility events, and the impact of geopolitical events.
"Macquarie remains well-positioned to deliver superior performance in the medium term due to its diverse business mix across annuity-style and markets-facing businesses," Wikramanayake said.
Macquarie share price snapshot
The Macquarie share price has seen a few ups and down in 2023. With more ups than downs, shares have gained 7% so far this year.
That figure doesn't include the stock's dividends.
