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Macquarie Group full-year profit up 29%

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By Reporter
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3 minute read

Macquarie Group has announced a full-year net profit after tax of $2.063 billion for the 12 months to 31 March 2016, up 29 per cent on the previous year.

The contribution of Macquarie's annuity-style businesses – Macquarie Asset Management (MAM); Corporate and Asset Finance (CAF); and Banking and Financial Services (BFS) – was up by $277 million, or 10 per cent, on 2014-15.

This contribution makes up 70 per cent of the total group's performance, according to a Macquarie statement.

The group's capital markets-facing businesses – Macquarie Securities Group (MSG); Macquarie Capital; and Commodities and Financial Markets (CFM) – saw their combined net profit contribution decrease by $34 million or 3 per cent.

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Macquarie Group managing director and chief executive Nicholas Moore said 2015-16 highlighted the "mix and quality of Macquarie's businesses".

"The six months to 31 March 2016 saw Macquarie's annuity-style businesses continue to perform well against comparative periods which benefited from strong performance fees in MAM and gains on sales of businesses in CAF, with combined net profit contribution down 37 per cent on 1H16 and down 17 per cent on 2H15," Mr Moore said.

"Macquarie's capital markets-facing businesses' combined net profit contribution was down 13 per cent on 1H16, and down 34 per cent on 2H15, which overall experienced lower trading activity and higher impairments," he said.

On the whole, Macquarie remains "well positioned", he said, pointing to the company's "proven risk management framework and culture".

Macquarie Equities Limited had a 12-month review of its adviser documentation practices finalised by the corporate regulator on Thursday.

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