Macquarie posts 29% profit increase
Macquarie Group has posted a 29 per cent increase in net profit after tax to $2.63 billion for the full year ended 31 March 2016.
In an announcement to the Australian Securities Exchange (ASX) the firm said its profit for the second half of the year (2H16) was down seven per cent on a strong first half result.
Macquarie Group managing director and chief executive, Nicholas Moore, said Macquarie's annuity-style businesses, which represent more than 70 per cent of the group's performance, each reported record net profit contributions for the year.
This combined net profit contribution increased by $277 million, or 10 per cent on FY15.
The firm's capital markets facing businesses combined net profit contribution decreased by $34 million, or three per cent on FY15 as it experience lower trading activity and higher impairments Moore said.
Macquarie's assets under management (AUM) at 31 March were $478.6 billion, down two per cent thanks to a decrease in insurance assets and asset realisations, partially offset by higher asset valuations, additional investments and positive flows, the announcement said.
Macquarie said the key drivers of the change from the prior year were:
- A 14 per cent increase in combined net interest and trading income to $4.35 billion;
- A three per cent increase in fee and commission income to $4.862 billion;
- A 32 per cent increase in other operating income and charges to $923 million; and
- A six per cent increase in total operating expenses.
"The Group remains well positioned, with a strong and diverse global platform and proven deep expertise across a range of products and asset classes," Moore said.
"This is built on the foundation of a strong balance sheet, surplus capital, a robust liquidity and funding position and a conservative approach to risk management which is embedded across all operating groups."
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