Macquarie FY20 Profit Down 8%, Cuts Dividend

Macquarie Group Limited (MQG.AX,MQBKY.PK) reported a net profit after tax attributable to ordinary shareholders for the full-year ended 31 March 2020 was A$2.73 billion, down eight percent on the full-year ended 31 March 2019.

The prior year results benefited from a high level of asset realisations, while the latest-year was impacted by higher impairments relating to the potential economic impacts of the COVID-19 pandemic.

Macquarie Group Managing Director and Chief Executive Officer, Shemara Wikramanayake, said, "The final months of the financial year were overshadowed by the profound human impact of the COVID-19 global health crisis and its economic consequences."

Net operating income, excluding credit and other impairment charges, of A$13.365 billion in fiscal year 2020 was in line with fiscal year 2019. International income accounted for 67 per cent of Macquarie's total income.

The company noted that market conditions are likely to remain challenging, especially given the significant uncertainty caused by the worldwide impact of COVID-19 and the uncertain speed of the global economic recovery.

The extent to which the conditions will impact the Group's overall fiscal year 2021 profitability is uncertain, making short-term forecasting extremely difficult.

So, the company said it is currently unable to provide meaningful guidance for fiscal year 2021.

The company said its board has resolved to pay a final fiscal year 2020 dividend per share of A$1.80 materially down (50 per cent) on the fiscal year 2019 final dividend per share.

In conjunction with the interim dividend per share of A$2.50, this represents a fiscal year 2020 dividend per share of A$4.30, and a fiscal year 2020 dividend payout ratio of 56 per cent. The record date for the final ordinary dividend is 19 May 2020 and the payment date is 3 July 2020.

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