The good times keep rolling for Macquarie Bank which, thanks to improved market conditions and an active merger and acquisitions climate, today announced a 17 per cent increase in first half net profit to a record $284 million.
And the outlook for Australia’s largest investment bank and most popular platform provider by inflows this year is strong, with the group predicting it will exceed last year’s full year result of $333 million, subject to market conditions and the effects of the proposed merger of its two listed property units, Macquarie Goodman Management and the Macquarie Goodman Industrial Trust.
“Over the medium term, Macquarie is well placed due to good businesses, diversification, committed staff and effective prudential controls,” chief executive Allan Moss said.
“Subject to market conditions not deteriorating materially, Macquarie expects continued growth in revenue and earnings across most businesses and continued international growth.”
Today’s positive result comes despite an anticipated drop in performance fees from the bank’s specialist infrastructure funds.
Most of the profit was generated by the group’s sizeable investment banking operation but Moss says the bank’s six major business groups including treasury and commodities, banking and property, equity markets, financial services, and funds management – all made positive contributions to the overall result.
Performing particularly well was the bank’s financial services and funds management operations with wrap funds under administration rising 34 per cent from $9.1 billion at March 2004, to $12.2 billion – contributing to Macquarie receiving the highest inflows than any other platform provider in 2004.
Meanwhile total funds under management for the group’s funds management division increased 13 per cent to $40.8 billion from $36.2 billion for the corresponding period last year.
Macquarie says shareholders will be paid an interim dividend of 61 cents per ordinary share franked to 90 per cent for the half year ended 30 September, up from 52 cents for the same period last year.
