A look at the Macquarie Group Ltd [ASX:MQG] share price.
The Sydney-based banking giant recently announced its financial results for 1H21 and it appears to have bucked the trend of other Australian banks by seeing profits increase.
The announcement saw the MQG share price gain 1.82%, trading at $134.27 at the time of writing.
What’s happening at Macquarie Group?
This year continues to be incredibly challenging for businesses of all shapes and sizes, not too many have been able to fight back against COVID-19 and the economic turmoil it has brought with it.
Including what many see as bulletproof — the banking sector.
In some parts Macquarie has suffered the same fate, while in other arms of the business they’ve experienced increases in profit, giving the company a net result of a gain for the first half of FY21.
Macquarie’s ‘consolidated net profit attributable to the ordinary equity holder of $A660 million for the half year ended 30 September 2020 decreased 33% from $A992 million in the prior corresponding period and increased 41% from $A469 million in the prior period.’
Considering what unfolded this year and compared to others in the banking sector — Australia and New Zealand Banking Group Ltd [ASX:ANZ] announcing their profits had dropped 42% — this result for Macquarie is comparatively fantastic.
Where to from here for Macquarie?
It remains to be seen where the finance sector will go from here and into the first half of 2021 due to the uncertainty in not only the Australian housing market but global markets overall.
The MQG share price took a nice run-up in price since the March low, gaining over 90% — a strong result compared to ANZ.
In the short term, the price still looks to be in an uptrend. For this to continue it would need to break above the level of $137.67 and create a new high.
Should price start to fall away, then the levels of $130.41 and $125.62 may be enough to hold up a further decline.
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