Macquarie banks record profit

MACQUARIE Group has produced a record full-year net profit of $2.55 billion, up 15 per cent, with the strong result expected to be repeated this financial year.

Chief executive Nicholas Moore said yesterday that operating income — a measure of revenue — jumped 5 per cent across the group to $10.9 billion for the year to March.

Investors will share the spoils from the strong performance, with Macquarie boosting its final dividend 14 per cent to a record $3.20.

Across the five main Macquarie divisions, however, the results were mixed.

Leading the charge this year was its capital markets, which specialises in advising and helping companies with buyouts and floats. It was previously the group’s smallest pre-tax contributor.

Macquarie Capital reported a 45 per cent increase in profit, from $483 million to $700 million, fuelled by asset sales and higher fee income.

It provided advice on 402 mergers and acquisitions over the year.

The group’s banking and financial services arm turned in a healthy 9.1 per cent increase in profit to $560 million as deposits increased 3 per cent and funds on its investment platforms increased 14 per cent.

It also reported a 14 per cent boost in its mortgage book, which now accounts for 2 per cent of the Australian market.

The commodities and global markets division, however, reported a 6.3 per cent slump in profit to $910 million.

An improved performance across its equities platforms was offset by tighter margins on interest-rate and credit products and reduced income from the sale of investments.

Macquarie’s corporate and asset finance division squeaked in with a 0.6 per cent increase in profit to $1.2 billion.