Macquarie bank expects to match last year’s record profit when it closes the current financial year in March.
The bank last year posted a 29% rise in full year net profit to $2.063 billion, a record result and a return to pre GFC performances.
Today Macquarie, in an annual operational briefing, said December quarter net profit was up on the same three months the year before.
However, for the nine months ended December, net profit was slightly down on the prior corresponding period which benefited from strong performance fees.
Macquarie says it expects net profit for the year ending March to be “broadly in line” with the 2016 result.
CEO Nicholas Moore described trading conditions as satisfactory.
“Macquarie remains well positioned to deliver superior performance in the medium-term due to its deep expertise in major markets, strength in diversity and ability to adapt its portfolio mix to changing market conditions, the ongoing benefits of continued cost initiatives, a strong and conservative balance sheet and a proven risk management framework and culture,” he says.
In the December quarter, Macquarie Asset Management had assets under management of $501.7 billion, up 2% on the September quarter, mainly driven by positive foreign exchange and market movements.
Banking and Financial Services had total deposits of $44.2 billion, up 5% on September. The Australian mortgage portfolio of $28.6 billion was flat.
Macquarie Capital experienced solid levels of activity, mainly in infrastructure in Australia and the US, with 88 transactions valued at $44 billion globally.