Australia’s Macquarie Bank’s earnings to rise by retail banking business: S&P

The bank’s parent company will also enjoy income growth from outside Australia.

Australia’s Macquarie Bank is expected to see continued earnings increase from its Australian retail banking business, says S&P Global Ratings.

The ratings agency forecasts that Macquarie Bank will remain strongly capitalized, and maintain its risk-adjusted capital ratio above 10%.

“The relatively benign economic outlook, low unemployment, and strong household balance sheets should temper the risks to the Australian banking system from high inflation, rising interest rates, and low business and consumer confidence,” S&P said in a non-ratings commentary.

Macquarie Group, the bank’s parent company, will also enjoy ongoing growth with more than 70% of income from outside Australia.

The consolidated group's capital surplus of A$12.6b over the Australian Prudential Regulation Authority's regulatory requirements as of March 31, 2023, will position it well to capitalize on business opportunities as they arise, S&P said.