Macquarie Bank relative performance
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The table shows the performance of Macquarie’s share price relative to other Australian bank share prices. We did not include the smaller regional banks for the sake of simplicity.
There is a distinct difference in the performance of Macquarie bank because the company has different earning drivers to the rest of the Australian banking sector. The bank’s earnings are more capital market-focused which is dependent on the performance of equity and debt markets.
Recently Macquarie has tried to provide a more annuity-style of income by expanding the asset management division. It has always been a strong infrastructure funds management, but it is looking to expand beyond infrastructure funds to a more rounded asset manager.
On the other hand, the large Australian commercial banks’ earnings are dependent on:
- Volume in the residential mortgages.
- Business confidence feeds into their business lending.
- Changes in the net interest margin, the difference between deposits and interest on mortgage book and business lending.
Whilst there are points of differentiation between the banks. Their earnings and risk profiles predominately track the performance of the Australian economy.
MQG Dividends
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It is noticeable that the franking credit percentage level is lower at ~50% compared to ANZ dividends or NAB dividends, which range from 80% plus. This can be attributed to the business’s global nature, where a significant portion of its earnings is offshore.
Interim Dividend Date: December
Final Dividend Date: July