Macquarie Group Limited (Macquarie) enjoyed a strong performance from its annuity-style business with combined net profit contribution up for the quarter ended 31 December 2012.
"Since our recent announcement for the first half of the 2013 financial year, market conditions have shown some signs of improvement. However, client activity remains subdued for capital markets facing business," Macquarie chief executive Nicholas Moore said in a statement to the Australian Securities Exchange (ASX).
"Macquarie's annuity-style business - Macquarie Funds, Banking and Financial Services, and Corporate and Asset Finance - continue to perform well.
"Whilst Macquarie's capital markets facing business - fixed income, currencies and commodities, Macquarie securities and Macquarie Capital - continues to face subdued market conditions, the combined third quarter 2013 net profit contribution was up strongly on both a weak prior corresponding period and September 2012 quarter," he said.
Macquarie banking and financial services' (BFS) $11.1 billion Australian mortgage portfolio was up five per cent. During quarter three 2013, BFS acquired 8.3 per cent of Yellow Brick Road Holdings (YBR) and signed a financial product distribution agreement with YBR.
The firm also entered into an agreement to acquire Pacific Premium Funding. If the acquisition is approved, Macquarie Premium Funding will become the second largest premium funder in Australia.
Subject to market conditions, Macquarie expects the financial year 2013 net profit contribution from the operating groups to be up from the previous year. The contribution from corporate is expected to be down over the same period.
"Whilst market conditions remain uncertain, we currently expect Macquarie's result for 2013 to be up approximately 10 per cent on 2012, with the probability of a stronger result should improved market conditions persist," Mr Moore said.
