Macquarie Group has reported healthy profit growth for the year ending 31 March 2017 despite “challenging market conditions”.
The bank’s net profit grew 7.5 per cent over the year to $2.22 billion, with its operating income climbing 2 per cent to $10.36 billion.
“Macquarie’s businesses have continued to grow in the challenging market conditions of recent years,” the company said.
“While our Australian franchise maintained its strong position, the offshore businesses continued to perform well, with international income accounting for 63 per cent of Macquarie’s total income for the year.”
The company’s ‘annuity-style’ businesses, such as Macquarie Asset Management, Corporate and Asset Finance and Banking and Financial Services, had a combined net profit of $3.25 billion – 4 per cent higher than the previous year.
Profit from Macquarie’s capital market-facing businesses saw a 12 per cent increase to $1.45 billion, the company said.
“It is currently expected that the combined net profit contribution from operating groups for the financial year ending 31 March 2018 will be broadly in line with the financial year ended 31 March 2017,” Macquarie said.
“Macquarie’s short-term outlook remains subject to market conditions, the impact of foreign exchange and potential regulatory changes and tax uncertainties.”
Macquarie group recently received the lowest climate change preparedness ranking in Australia from the Asset Owners Disclosure Project – a ranking it rejected, saying the company was “fully committed” to managing environmental risks.