The Macquarie Group has announced a $678 million half year profit with its banking and financial services and managed funds business contributing heavily to the group's performance.
Overall profit before income tax was $1,121 million with Macquarie Group managing director and chief executive Nicholas Moore stating that its annuity-style businesses, which compromised Macquarie Funds, Corporate and Asset Finance and Banking and Financial Services, increased its net profit contribution by 38 per cent on the first half of 2014 and by 23 per cent on the second half of 2014.
The Macquarie Funds Group delivered a net profit contribution of $785 million for the half year up 57 per cent on the preceding six months with total assets under management of $423 billion.
Banking and Financial Services delivered a net profit contribution of $141 million for the half year, up 27 per cent on the preceding six months with assets under administration through Macquarie platforms increasing by three per cent during the half to $41.7 billion.
Moore also made reference to the enforceable undertaking imposed on the bank's Private Wealth division by the Australian Securities and Investment Commission and stated that since the group's annual general meeting in July it had moved to fourth and final phase of its client remediation work.
He stated that around 189,900 letters have been sent to Includes current and former clients dating back to March 2004, when Macquarie Equities first obtained its licence and that client file reviews were progressing.
These reviews were based on the application of Financial Ombudsman Service principles and were being conducted by two case managers with a further review by panel of senior Macquarie representatives and overseen by ASIC and Deloitte.
Macquarie had also nearly completed the deployment of Xplan to all advisers within the group and would be investing in other new technology tools to support supervision and monitoring of advisers.
