Shares of Macquarie Group Ltd [ASX: MQG] are trading at $122.64, down 1.44% in today’s market.
This is despite its recent full-year profit result revealing a net profit growth of 15% compared to 2017FY results. The company also saw shareholders dividends increase by 11.7%.
Why did Macquarie Group share price fall?
Pinpointing a specific reason is very unlikely, but a potential factor in Macquarie’s share price decline could be the amount of its commitment to renewable energy, and longstanding commitment to support clients in the transition to low carbon economy.
Chairman Peter Warne said that Macquarie had invested over AU$9.5 billion in renewable energy, energy efficiency and clean energy in financial year 2018.
Investors should also keep in mind the Royal Commission into misconduct in the banking, superannuation and financial industry services could still be affecting the share price.
Macquarie Group annual general meeting update
This year’s general meeting saw Chairman Peter Warne announce that Shemara Wikramanayake has accepted the board’s invitation to replace Nicholas Moore as managing Director and CEO of Macquarie.
The arrangement will be effective 30 November 2018, shortly after the Group’s results for 1H19 are delivered and Mr Warne completes the usual investor roadshow alongside Shemara Wikramanayake.
In the Annual general meeting Moore commented on this 2019FY highlights, saying:
‘Macquarie remains well positioned to deliver superior performance in the medium-term due to its deep expertise in major markets, strength in diversity and ability to adapt its portfolio mix to changing market conditions, the ongoing benefits of continued cost initiatives, a strong and conservative balance sheet and a proven risk management framework and culture.’
Macquarie Group’s results for 2019FY currently look to be in line with their 2018FY results.
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