This was helped by the shift of the Green Investment Group from Macquarie Capital to MAM.
The private markets business within MAM had $175.5 billion in equity under management, up 11 percent on the previous corresponding quarter.
Macquarie said that during the quarter, $12 billion in new equity was raised in private markets, $5.9 billion of equity was invested and $1.7 billion was divested, resulting in $28.8 billion of equity to be deployed at June 30.
The Green Investment Group contributed to MAM’s earnings through the sale of assets in Europe at a profit, including a waste energy business in the United Kingdom and a wind generation business in Poland.
The standout performer in the first quarter was Macquarie’s banking and financial services division, which lifted deposits by 9 percent to $106 billion and boosted its home loan portfolio by 8 percent to $96.9 billion.
Adding another $7 billion in mortgages in three months is impressive given ANZ Banking Group is paying $4.9 billion for $47 billion in mortgages. In other words, at the current growth rate, Macquarie will write $47 billion in mortgages in 18 months.
Macquarie also did well in its commodities and global markets business, with “strong” results from the commodities trading arm and favorable trading conditions in global markets, including foreign exchange, fixed income and credit.
Volatility has been Macquarie’s friend over the past two years and this could help boost profits for the rest of the year.
But chief executive Shemara Wikramanayake was cautious in her comments about the outlook because of unfavorable market conditions in asset management.
She says net other operating income in MAM will be down this financial year because of the non-repeat of the gain last financial year from Macquarie Infrastructure Corporation. She says results from GIG will be “significantly down as we had strong realizations in the last financial year”.
In banking and financial services, Wikramanayake expects downward pressure on net interest margins because of market dynamics and the cost of investing to support volume growth.
Macquarie Capital expects transaction activity to be “substantially down” on 2022’s record year.
Wikramanayake says the income from the commodities and global markets business is expected to be down in 2023, but “volatility may create opportunities, of course, and we also expect consistent contribution in that group from our financial markets platform and from our assets finance business” .