Macquarie Group today announced an $851 million full year profit, with more than half of its total income for the year coming from overseas.
At 11:29 this morning it was trading up 9.72%, or $3.78 to $42.66.
Commenting on the result, which saw 63 per cent of revenue taken offshore, Macquarie boss Nicholas Moore said: “Global market conditions generally improved during the year to 31 March.
This, “together with strong cost controls across the group, led to the improved result,” which is a 17 per cent total increase in cash earnings, Moore said in a statement.
While its capital markets businesses are still facing headwinds, Moore said they delivered a “significantly improved” result, with combined net profits up 202 per cent.
Though while Macquarie Capital, and Fixed Income, Currencies and Commodities made money, it was another loss for the bank’s securities business.
Macquarie Securities made a $50 million loss for the full year, though this is up on the $194 million loss it recorded the year before.
This was blamed on the weak investor confidence also affecting many of Macquarie’s competitors. The business benefited from improved volumes in the fourth quarter however, as well as having to pay less operating and legacy expenses.
The securities business “maintained its leading position for Australian equities among institutional investors globally,” Macquarie said.
This year rivals JP Morgan Securities made a small profit of $748,000 and Deutsche Securities Australia posted its third loss straight loss for the year to December, according to Fairfax Media.
UBS Securities has been the stand out so far, with a $55.2 million profit, an increase of 30 per cent.
Macquarie Capital made $150 million, a 76 per cent increase on last year. FICC’s profit was up four per cent, to $563 million, benefiting from a general improvement in investment market conditions.
Banking and Financial Services contributed $335 million to to the group’s result, and Macquarie Funds and Corporate and Asset Finance kicked in $755 million and $694 respectively.
Macquarie increased its dividend to $1.25