Macquarie upbeat about FY15

Financial services group sees FY profit seen in line with FY14 despite soft first quarter.

Macquarie Group (MQG) has delivered a cautiously optimistic outlook for fiscal 2015, revealing it expects full-year profit broadly in line with the previous year.

Chief executive Nicholas Moore told shareholders at the group's annual general meeting this morning that he expects the fiscal 2015 net profit contribution from operating groups will increase from fiscal 2014. 

He said this would help offset the lower contribution expected from Macquarie Securities.

As a result, Mr Moore said the financial services group's full-year result is expected to be broadly in line with fiscal 2014, "with the potential for a better result if market conditions improve".

However, Mr Moore said the operating groups' contribution for the first-quarter was down on the previous corresponding quarter.

"Macquarie’s capital markets facing businesses for the first quarter were down on the first quarter of fiscal 2014 and the fourth quarter of fiscal 2014 due to the timing of transactions and lower volatility and volumes impacting Macquarie Securities and certain fixed income, currencies and commodities businesses," he said.  

Mr Moore said, as has historically been the case, the group expects the second half of fiscal 2015 to be stronger than the first half.

The tax rate for fiscal 2015 is seen broadly in line with the previous year.

Mr Moore said the group's short-term outlook remained subject to market conditions, volatility in foreign exchange rates and potential regulatory changes and tax uncertainties. 

But he said Macquarie remained well positioned to deliver superior performance over the medium term.

"The group has deep expertise in major markets and we continue to build on our strength in diversity and adapt our portfolio mix to changing market conditions," he said.

"We are seeing the ongoing benefits of continued cost initiatives, our balance sheet is strong and conservative, and we have a proven risk management framework and culture."

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