Green investments weigh on Macquarie

Mike Taylor

Managing Editor and Publisher

14 February 2024

Lower asset realisations in green investments took its toll on Macquarie Group’s balance sheet, according to the company’s third quarter update to the Australian Securities Exchange.

The update also announced the exit of the company’s Head of Commodities and Global Markets, Nicholas O’Kane, after 28 years with the group. He will be succeeded by Simon Wright.

The company’s update said financial year to date net profit after tax was substantially down on that for the same period last year “mainly due to lower asset realisations in green investments in Macquarie Asset Management (MAM) and margin compression along with the run off in the car loan portfolio, partially offset by volume growth across home loans and business lending”.

Commenting on the update, Macquarie Group managing director and chief executive, Shemara Wikramanayake said that underlying client franchises were “resilient in ongoing uncertain conditions with continued customer growth, fundraising and new business origination a feature across all our businesses”.

She said the annuity-style businesses’ combined third quarter net profit contribution was down and that net profit contribution for the 2024 financial year to date were significantly down “primarily due to lower asset realisations in green investments and continued investment in the development of green energy portfolio companies”.

Looking over the horizon, Wikramanayake said the company remained well-positioned to deliver superior performance in the medium term with its diverse business mix across annuity-style and markets-facing businesses.