Macquarie warns of slowdown after bumper year, shares tumble almost 6%

  div classBodysc17zpet90 cdBBJodivpBy Savyata Mishrap

  pReuters – Australias Macquarie on Friday warned of significantly lower income from its commodities trading arm and forecast transaction activity at its capital business to ease from record levels in the near term, sending its shares almost 6 lower.pdivdivdiv classBodysc17zpet90 cdBBJodiv

  pThe company also said it expects its shortterm projection to be affected by geopolitics, surging inflation, and rising interest rates.p

  p“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,” Chief Executive Officer Shemara Wikramanayake said.p

  pShares of the company were down 5.6 at A191.34 by 1207 GMT, while the broader market slipped 2.p

  pMacquaries dim outlook came even as volatility in the commodities market, caused by the RussiaUkraine war, and higher fees and income from advising on deals helped the financial conglomerate beat annual profit estimates.p

  pIts commodities and global markets CGM arm was boosted by a Ukraine crisisled volatile rally in oil and natural gas prices, while its Macquarie Capital unit benefited from advising on some of the biggest deals in Australia, including the 17 billion buyout of Sydney Airport and Santos 6 billion purchase of rival Oil Search.p

  pMacquarie, the worlds top infrastructure investor, had said earlier this year that it also profited from significant asset sales in infrastructure and other sectors.p

  pIncome from its CGM business jumped 50 to A3.91 billion 2.78 billion in the year to March. Earnings at Macquarie Capital more than tripled to A2.40 billion.p

  pThat helped the companys attributable profit surge 56 to A4.71 billion and top a Visible Alpha consensus of A4.45 billion.p

  pIt declared a final dividend of A3.50 per share, up from A3.35 per share a year earlier.p

  p1 1.4049 Australian dollarsp

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