Macquarie Group (MQG) is Australia's leading listed Investment bank and has offices all around the globe.

The company is well diversified with six different operating groups which include:

1H13 Results

Today MQG reported its 1H13 results with its first-half dividend and pre-tax profit beating market expectations. The company's 1H13 net profit was $361 million, up 18% on the prior corresponding period. This actually missed consensus earnings by 3%.

Operating income dropped to $3.1 billion, a 5% fall on 1H12. What impressed was MQG's ability to adjust for the loss of income with a 9% reduction in operating expense, showing its focus on cost savings.

Return on equity (ROE) increased from 5.7% in 1H12 to 6.6% in 1H13, highlighting a more profitable deployment of shareholder funds.

The group's EPS grew by 22% on the prior corresponding half to $1.06. As the above shows, this is the company's first half of positive EPS growth in more than five years and with think this could be the turnaround for the company's fortunes.

Another item we found impressive with the results was the dividend payment. It climbed $0.10 from the 1H12 payment, to $0.75.

Outlook

MQG's 1H13 results were impressive to say the least. Out of all the figures released today the numbers we liked the most were the reduction in operating expenses, the increased dividend payment, and the return to EPS growth.

All the above mentioned figures show us that MQG has turned a corner and we believe this will lead to continued share price appreciation.

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Macquarie Group Limited (MQG) Stock To Buy is a post from: Australian Stock Report Share Tips

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