Morgans sees the first half result for Macquarie Group as reasonably clean, and slightly better than the group's recent guidance.

The broker highlights group surplus capital remains strong and well up on April, while the home loan portfolio grew 10% sequentially.

Negative surprises included credit and other impairment charges broadly tripling versus the previous corresponding period and Macquarie Capital had a very soft result on higher impairments and lower deal flow.

The first half dividend was slight better than consensus.

Morgans lifts FY21 and FY22 EPS forecasts by 3%-6% on various changes to divisional earnings assumptions.

The Add rating is unchanged and the target is increased to $141.20 from $130.40.

Sector: Diversified Financials.

Target price is $141.20.Current Price is $135.45. Difference: $5.75 - (brackets indicate current price is over target). If MQG meets the Morgans target it will return approximately 4% (excluding dividends, fees and charges - negative figures indicate an expected loss).

© 2020 Acquisdata Pty Ltd., source FN Arena