Macquarie Bank expects profits for the six months to March 31, 2007, to be up strongly, thanks in part to the combined effect of strong inflows into its Funds Management and Financial Services groups and specialist funds initiatives such as the Thames Water acquisition.
A highlight of the December 2006 quarter was a 16 per cent increase in assets under management, which grew to $177 billion, spurred along by 7 per cent growth in the Funds Management and Financial Services groups.
Allan Moss, Macquarie Bank managing director and chief executive officer, said he expects continued satisfactory transaction levels and substantial raisings in unlisted international specialist funds for the remainder of 2007, subject to market conditions.
“The bank has benefited from continuing good conditions across most markets, especially from good equity markets in Australia and internationally,” Moss said.
He pointed to easing volatility in commodity prices since 2006 and mixed conditions in the Australian property market, and an expected lower tax rate for the year ended March 31, 2007, relative to the same period in 2006, as other factors positively impacting Macquarie Bank.
Moss also said that strong staff growth, with numbers growing to around 9,400 domestically and 3,200 internationally, benefited the company.
“As is usual at this part of the market cycle, there is also increased competition for staff, especially in international markets.”
