Another profitable year for Macquarie

Macquarie Bank has announced a 13 per cent increase in its reported earnings for the year to March 31, 2006.

This includes a 34 per cent increase in ordinary dividends, and an 8 per cent increase in earnings per share.

According to chief executive officer Allan Moss, significant growth in non-Australian markets has made a large contribution to the bank’s results, with almost half of all operating income now derived from overseas markets.

In particular, income in Asia has increased by 94 per cent over the last year, which is partly due to the acquisition of ING’s Asian cash equities business in 2004.

Moss said: “The deals are usually bigger [overseas] and that means the margins are bigger also.”

International staff numbers have also increased to over 2,500, a rise of 44 per cent.

However, Moss said the bank was conscious of the need to manage its rapid growth. He said: “When you are managing risk, managing growth is always important.

“And we need to watch the macro-economic issues. The last 15 years have been wonderful, but you can’t take that for granted.”

The Macquarie Financial Services Group grew assets under administration by almost 30 per cent, driven largely by inflows to its wrap products.

The group’s purchase of Coin Software, which has doubled client numbers to 160, and its managed fund service, the Macquarie Professional Series, also contributed to the growth in funds under management.

Chair David Clarke said: “We are very pleased with the [group’s] results. Earnings per share is up 20 per cent on last year. It has been a year of exceptional growth and one we are very proud of.”

Meanwhile, Macquarie has halted trading on the Australian Stock Exchange as it contemplates a capital raising. It has been speculated that the bank is considering buying into Channel operator Eurotunnel.