Macquarie posts 29% rise in profits
Macquarie Group has reported that its full-year profits rose by 29 per cent over the previous year, thanks in large part to the company's annuity-style businesses.
In the 12 months to 31 March 2016, Macquarie Group's full-year net profit after tax was $2.063 billion.
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.
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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