The Macquarie Group Ltd (ASX: MQG) share price dropped in June, although it lost less than many other ASX bank shares during the month.
Macquarie shares slipped 11.54% between market close on 31 May and 30 June. To put this in perspective, the S&P/ASX 200 Index (ASX: XJO) slid nearly 9% during the same time frame.
So what weighed on the Macquarie share price during the month?
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Bank shares suffer
Macquarie shares had a tough June, but they outperformed multiple other ASX banks. Last month, the Commonwealth Bank of Australia Ltd (ASX: CBA) descended 13.4% while Westpac Banking Corp (ASX: WBC) lost 18.3%. Meanwhile, National Australia Bank Ltd (ASX: NAB) fell 12.38% and Australia New Zealand Banking Group Ltd (ASX: ANZ) dropped 12.02%. Bendigo and Adelaide Bank Ltd (ASX: BEN) also tumbled 12.96% in June.
Interest rate rises and recession fears appeared to impact ASX bank shares, including Macquarie. Despite hikes increasing net interest margins (NIM) on home loans, they can also lower demand for new mortgage loans, as my Foolish colleague Bernd noted recently. Further, they can boost the number of bad debts held by the bank.
Looking at news from Macquarie, on 28 June, the company announced plans to raise $400 million via the offer of capital notes. These notes were issued at $100 each, with distributions to be paid quarterly in arrears, subject to conditions.
In other news last month, Macquarie offered interest rates of 1.5% per year for transaction accounts from 17 June. As my Foolish colleague Sebastian noted, this was a higher rate than most other ASX banks.
Looking ahead, some analysts are tipping an upside for the Macquarie share price. Analysts at Morgans are optimistic about its exposure to infrastructure and renewables, as my Foolish colleague James reported. Morgans added:
The company also stands to benefit from recent market volatility through its trading businesses, while the company continues to gain market share in Australian mortgages.
Morgans placed an add rating on the Macquarie share price with a $215 price target. This is a 27% upside on the current share price of $168.65 at the time of writing.
Meanwhile, Ord Minnett senior investment advisor Tony Paterno also recommended investors buy Macquarie shares in a post on 19 June. He noted the company's plans to boost interest payments on transaction accounts, adding:
After disrupting the home loan market in recent years, this could have an impact on the deposit market if it gains traction.
Share price snapshot
Macquarie shares have shed 18% in the year to date, but they have leapt more than 7% in the past year
In contrast, the S&P/ASX 200 Index has returned about 9% in the past year.
Macquarie has a market capitalisation of just over $65 billion based on the current share price.
