Macquarie Group’s interim profit jumps on growth in commodities business

Oct 28 (Reuters) – Australia’s Macquarie Group (MQG.AX) reported a 12.8 percent rise in first-half profit on Friday, as volatility in oil and gas prices boosted its commodities trading business.

Financial institutions such as Macquarie benefited from 2020 that began 2020 with wild commodity market volatility and supply chain disruptions, intensified this year with Russia’s invasion of more

Macquarie’s commodities and global markets division delivered a net profit contribution of about $2 billion, 15 per cent higher than last year, as more clients hedged against volatile energy markets.

Chief executive Shemara Wikramanayake said “Macquarie remains well-positioned to deliver exceptional performance in the medium term”, despite the company’s cautious approach to global economic developments.

The financial group’s share of profit 30 for the six months ended September was A$2.31 billion ($1.49 billion), compared with A$2.04 billion reported a year ago.

It beat IBES estimates by Refinitiv of A$2.19 billion but fell short of Citi’s estimate of A$2.43 billion.

The company declared an interim dividend of A$3 per share, compared to A$2.72 last year.

(1 USD = 1.5506 AUD)

Reporting by Jaskiran Singh and Tejaswi Marthi in Bengaluru; Editing by Devika Syamamanath

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