Australia’s Macquarie Group has reported a “record” third quarter, boosted by increased client hedging and trading in the company’s gas and power business in response to “unusually challenging market conditions”.
The financial services giant also saw “exceptionally strong investment realisation” in infrastructure, business services and technology through the Macquarie Capital division.
Growth continued in the company’s Australian banking division, where its mortgage book grew by 8 per cent. Macquarie is one of the fastest-growing mortgage lenders in Australia, targeting the less risky portion of the market with low loan-to-value ratios.
Macquarie’s asset management business hit assets under management of $A750.1bn (US$534bn), up 2 per cent on the prior quarter. The update did not give detailed financial results.
Chief executive Shemara Wikramanayake said “extreme” volatility in the energy market over the three months to December 21 had led to increased trading income, as electricity and gas clients moved to hedge.
She cited the gas crisis in Europe, which saw prices skyrocket in the second half of 2021, which had increased market activity. She also said extreme weather events had contributed to activity.
“We continue to maintain a cautious stance, with a conservative approach to capital, funding and liquidity that positions us well to respond to the current environment,” Wikramanayake said in a statement to the Australian Securities Exchange.
“More broadly, we remain well positioned over the medium term, based on our deep expertise in major markets, a diversified and adaptable mix of strong businesses, an ongoing programme to identify cost-saving initiatives and efficiency, a strong and conservative balance sheet and a proven risk management framework and culture.”