Macquarie Group slashed its dividend as the global economic shutdown sent impairments soaring, ending a seven-year run of profit growth at the Australian investment bank and infrastructure manager.
Chief executive Shemara Wikramanayake also refrained from the bank’s usual practice of providing an earnings outlook, saying the uncertainty caused by the virus leaves the bank “unable to provide any meaningful” guidance for this year.
Net income fell 8 per cent to $1.8 billion (Dh6.6bn) in the 12 months ended on March 31, Sydney-based Macquarie said on Friday, its first profit drop in eight years. Impairments rose to $666.7 million, almost doubling from $368m last year.
Australia’s commercial banks have endured a torrid earnings season, with Westpac Banking and Australia & New Zealand Banking Group both deferring dividend payments.
“The result is decent given the tough environment,” Aberdeen Standard Investments investment manager Jason Kururangi said. “They are well positioned - as much as they can be - for a tougher period ahead.”
Ms Wikramanayake also struck a more positive note on a call with analysts, stressing there is still decent client activity. “Deals are still happening,” she said.
“Ideally, we like to do things face-to-face but we are still able to get on with making investments,” Ms Wikramanayake said in an interview. Citing changes such as virtual data rooms, operating remotely for a couple of months “hasn’t been a material disruption,” she said.
“We are comfortable with Macquarie and believe they are well positioned for opportunities in the future,” said Max Cappetta, chief executive of Redpoint Investment Management which manages about $6.7bn.
“Obviously the Covid crisis is challenging on a number of fronts, however management has consistently demonstrated strong governance and long-term thinking. That’s one of the reasons we have favoured our position in Macquarie over other banks in the last few years.”
Macquarie is the latest global bank to report sharply higher impairments as lenders grapple with assessing the impact of the virus.
Its global footprint and range of operating activities, from infrastructure management to aircraft leasing, oil trading and retail banking, offers both more diversification and sources of risk.
Bad-debt provisions rose in all divisions.
Emiratisation at work
Emiratisation was introduced in the UAE more than 10 years ago
It aims to boost the number of citizens in the workforce particularly in the private sector.
Growing the number of Emiratis in the workplace will help the UAE reduce dependence on overseas workers
The Cabinet in December last year, approved a national fund for Emirati jobseekers and guaranteed citizens working in the private sector a comparable pension
President Sheikh Khalifa has described Emiratisation as “a true measure for success”.
During the UAE’s 48th National Day, Sheikh Khalifa named education, entrepreneurship, Emiratisation and space travel among cornerstones of national development
More than 80 per cent of Emiratis work in the federal or local government as per 2017 statistics
The Emiratisation programme includes the creation of 20,000 new jobs for UAE citizens
UAE citizens will be given priority in managerial positions in the government sphere
The purpose is to raise the contribution of UAE nationals in the job market and create a diverse workforce of citizens
Killing of Qassem Suleimani
RESULTS
1.30pm Handicap (PA) Dh 50,000 (Dirt) 1,400m
Winner AF Almomayaz, Hugo Lebouc (jockey), Ali Rashid Al Raihe (trainer)
2pm Handicap (TB) Dh 84,000 (D) 1,400m
Winner Karaginsky, Tadhg O’Shea, Satish Seemar.
2.30pm Maiden (TB) Dh 60,000 (D) 1,200m
Winner Sadeedd, Ryan Curatolo, Nicholas Bachalard.
3pm Conditions (TB) Dh 100,000 (D) 1,950m
Winner Blue Sovereign, Clement Lecoeuvre, Erwan Charpy.
3.30pm Handicap (TB) Dh 76,000 (D) 1,800m
Winner Tailor’s Row, Royston Ffrench, Salem bin Ghadayer.
4pm Maiden (TB) Dh 60,000 (D) 1,600m
Winner Bladesmith, Tadhg O’Shea, Satish Seemar.
4.30pm Handicap (TB) Dh 68,000 (D) 1,000m
Winner Shanaghai City, Fabrice Veron, Rashed Bouresly.
Company%20Profile
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RESULTS
6.30pm: Maiden (TB) Dh 82,500 (Dirt) 1.600m
Winner: Miller’s House, Richard Mullen (jockey), Satish Seemar (trainer).
7.05pm: Maiden (TB) Dh 82,500 (D) 2,000m
Winner: Kanood, Adrie de Vries, Fawzi Nass.
7.50pm: Handicap (TB) Dh 82,500 (D) 1,600m
Winner: Gervais, Sandro Paiva, Ali Rashid Al Raihe.
8.15pm: The Garhoud Sprint Listed (TB) Dh 132,500 (D) 1,200m
Winner: Important Mission, Royston Ffrench, Salem bin Ghadayer.
8.50pm: The Entisar Listed (TB) Dh 132,500 (D) 2,000m
Winner: Firnas, Xavier Ziani, Salem bin Ghadayer.
9.25pm: Conditions (TB) Dh 120,000 (D) 1,400m
Winner: Zhou Storm, Connor Beasley, Ali Rashid Al Raihe.
Notable groups (UAE time)
Jordan Spieth, Si Woo Kim, Henrik Stenson (12.47pm)
Justin Thomas, Justin Rose, Louis Oosthuizen (12.58pm)
Hideki Matsuyama, Brooks Koepka, Tommy Fleetwood (1.09pm)
Sergio Garcia, Jason Day, Zach Johnson (4.04pm)
Rickie Fowler, Paul Casey, Adam Scott (4.26pm)
Dustin Johnson, Charl Schwartzel, Rory McIlroy (5.48pm)
