In an update to shareholders at the company’s annual general meeting, Macquarie Group chief executive Nicholas Moore said the operating group’s contribution for the first quarter of the 2014 financial year was ahead of the prior corresponding period – as well as the last quarter of the 2013 financial year.
But Mr Moore warned that the recent drop in the Australian dollar “will likely impact Macquarie’s earnings” given that 60 per cent of the company’s operating income comes from overseas.
Macquarie Funds Group had AU$379.3 billion in assets under management at 30 June 2013 – up AU$35.8 billion on 31 March 2013.
Following the completion of the transfer of the Perpetual platform to Macquarie Wrap on 1 April 2013, wrap funds under administration were AU$33 billion (up 32 per cent from 31 March 2013).
Macquarie Securities Group was also up on the prior corresponding quarter, and continued to be profitable “notwithstanding weak markets”.
In his address to shareholders, Macquarie chairman Kevin McCann warned that the slowdown in mining investment meant client activity would be subdued – particularly in the capital markets facing business.
On the advice side of the business, Macquarie is currently undergoing an ASIC enforceable undertaking that is “progressing well and remains on track”, according to the company update.
The AGM also saw the appointment of Gary Banks as an independent director on the Macquarie Group board and the Macquarie Bank board.
