Weak Aussie dollar will lift Macquarie's earnings
Macquarie Group is anticipating a boost to earnings from the weaker Australian dollar. Macquarie held its annual general meeting yesterday and provided some details of its performance in the June quarter.Sixty per cent of Macquarie's operating income comes from offshore. The company said that with a 10 per cent movement in the Australian dollar the impact on earnings is about six per cent.Macquarie reported that its June quarter performance was ahead of its result for the June quarter last year, and also ahead of its March quarter result. It said it was on track to increase profits this financial year (Macquarie's balance date is March 31).Both annuity (lending and funds management) and capital markets businesses were up. And Macquarie Funds Group increased its assets by A$35.8 billion, to $379.3 billion, in the June quarter.The asset and loan portfolio in the corporate and asset finance division added $1 billion of corporate and real estate lending in the June quarter.Macquarie Securities improved on the previous corresponding period, but the company said activity remained "subdued". Macquarie Capital, which is the mergers and acquisitions and advisory arm of the group, also reported subdued activity.