Macquarie (ASX:MQG) hikes dividend thanks to profit jump

Macquarie Group (ASX:MQG) has posted a 45 per cent jump to $4.7 billion annual profit with almost all the divisions posting a jump in earnings.

Macquarie Capital is an outperformer with profit soaring 269 per cent from $651 million in 2021 to $2.4 billion, reflecting significantly higher fee and commission income due to mergers and acquisitions and debt capital markets activities.

A final dividend of $3.50 a share will be paid on July 4, an increase of 15 cents from the prior year.

For the March quarter, assets under management rose 37 per cent from the prior year to $774.8 billion, largely due to the acquisitions of Waddell & Reed Financial, AMP Capital’s public investments business and Central Park Group, as well as investments by Private Markets-managed funds and net inflows in Public Investments.

The bank did not provide specific guidance but said it continues to maintain a cautious stance with a conservative approach to capital, funding and liquidity that positions them well to respond to the current environment. 

“While many of the regions and markets in which Macquarie operates saw heightened levels of volatility this year, our longstanding strategy to address key areas of unmet need in the community is unchanged,” said chief executive officer Shemara Wikramanayake. 

“Over time, this has seen us build deep and differentiated franchises in each of our areas of activity, all of which delivered sound outcomes and strong performance in FY22.”

Shares in Macquarie Group (ASX:MQG) are trading 6.5 per cent lower at $189.50