ASX 200 (XJO) rises 0.6%, Macquarie (MQG) shares up

The ASX 200 (ASX: XJO) has gone up by 0.7% this morning, following on from positive international market movements.

Victoria continues to see rising COVID-19 numbers with 723 new cases and 13 deaths. NSW saw another 18 new cases.

Macquarie’s (ASX: MQG) FY21 first quarter

Macquarie has given an update ahead of its annual general meeting (AGM).

The investment bank said that its operating groups have been impacted by mixed trading conditions. Its FY20 first quarter operating net profit contribution is “slightly down” on the first quarter of FY20.

Macquarie Managing Director and CEO Shemara Wikramanayake said: “Macquarie’s annuity style businesses were up 1Q20 with Macquarie Asset Management up primarily due to the sale of its rail operating lease business, partially offset by lower income in banking and financial services (BFS) which included higher provisions. Macquarie’s market-facing businesses were down on 1Q20 primarily due to significantly lower investment-related income in Macquarie Capital partially offset by stronger contributions from certain divisions in commodities and global markets.”

Macquarie said it had surplus group capital of $8.1 billion with a bank CET1 ratio of 13.2%.

The Macquarie share price is up more than 1%.

CBA’s (ASX: CBA) new remediation

You may remember that a couple of years ago – what seems like a lifetime ago – that the big ASX banks were punished as a result of the Hayne Financial Services Royal Commission.

Today, CBA gave an update about additional customer remediation provisions that will impact the second half of FY20.

The major bank said it’s going to recognise another $300 million of pre-tax customer remediation provisions. That brings the total to date to $834 million.

Fortescue (ASX: FMG) has a record year

Fortescue said that it achieved record iron ore shipments of 47.3 million tonnes (mt) for the FY20 fourth quarter and 178.2mt for FY20. This exceeded the top end of guidance of 177mt and it was 6% higher than FY19.

C1 costs for the fourth quarter of FY20 were US$13.02 per wet metric tonne (wmt). C1 costs for FY20 were US$12.94 per wmt including COVID-19 related costs of approximately US$0.22 per wmt.

On the revenue side of things, Fortescue achieved revenue of US$81 per dry metric tonne (dmt) in FY20’s fourth quarter. The average revenue for FY20 was US$79 per dmt.

The ASX miner finished with cash of US$4.9 billion and net debt of US$0.3 billion.

Fortescue has changed its climate change target. It’s aiming to achieving net zero operational emissions by 2040, including a 26% reduction in emissions from existing operations from 2020 levels, by 2030.

Fortescue is guiding that FY21 shipments will be between 175mt to 180mt and C1 costs will be between US$13 per wmt to US$13.50 per wmt. It’s also going to spend $3 billion to $3.4 billion on capital expenditure.

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