Macquarie restructures corporate and asset finance unit

Macquarie Group is rejigging its corporate and asset finance unit, and reiterating guidance for softer 2020 profit.

Macquarie CEO Shemara Wikramanayake. Picture: Britta Campion

Macquarie Group has outlined plans to disband its standalone corporate and asset finance unit from September, as it reiterated guidance for softer 2020 profit.

In an announcement to the ASX ahead of the group’s annual general meeting on Thursday, Macquarie said the change was effective September 1. Co-head of the corporate and asset finance unit Garry Farrell will retire as the change comes into effect.

The asset management giant and investment bank also reiterated its full-year earnings guidance for profit to be “slightly down” in its 2020 year. That is despite chief executive Shemara Wikramanayake telling investors the operating performance across its business divisions in the first quarter was “broadly in line” with the same period last year.

In May, Macquarie reported annual net profit climbed 17 per cent to a record $2.98bn for the 12 months ended March 31.

The ASX statement said the corporate and asset finance unit would be shifted into three of Macquarie’s other divisions. The principal finance business- excluding transport - joins the investment banking arm Macquarie Capital, while transport finance moves to Macquarie Asset Management.

The asset finance business goes to Commodities and Global Markets.

The corporate and asset finance unit’s other co-head Florian Herold joins Macquarie Capital and remains on the group’s executive committee.

At the AGM, investors will vote on the election of newest recruits former Westpac executive Phil Coffey and former Reserve Bank of Australia board member Jillian Broadbent. Two directors are also up for re-election.

The notice of meeting asks investors to sign off an increase in the cap for the board’s aggregate pay from $4.6 million to $5 million.

Ms Wikramanayake’s participation in the group’s retained equity plan will also be voted on. Approval is sought to allocate $7.96 million of her retained 2019 profit share.

Macquarie was in hot water on Wednesday when the banking regulator put it, Rabobank and HSBC Bank on notice for improperly reporting the stability of their funding.