Profitable times for Macquarie
Despite challenging times in most markets,Macquarie Bankhas announced a $130.2 million after-tax profit for the half year to September 30, 2001 - an increase of 21 per cent compared with the same period last year.
This result translates into a return on average ordinary shareholder’s funds of 25.5 per cent per annum.
According to Macquarie Bank executive chairman David Clarke, the result draws on good contributions from both Australian and international businesses.
“Domestic income increased by 20 per cent, and international income was also 17 per cent higher,” Clarke says.
Over the period, Macquarie Bank had a record income in Australian equities related businesses. Clarke says this was achieved partly because of increases in market share as other investment banks with headquarters overseas reduced their services to the Australian market.
However, underpinning Macquarie’s continued growth overall was its diversity of operations.
“Our spread across businesses and regions has, in these uncertain times in particular, delivered another outstanding result,” Clarke says.
Growth in income from specialist funds was also sighted as contributing to the good result, with the performance of the Macquarie Infrastructure Group (MIG) singled out for particular mention. Its performance fee contributed $69.2 million to the Banks $800 million total income.
“Specialist funds is a very exciting area for the bank and we have a number of new funds in various stages,” says Macquarie Bank managing director and chief executive, Alan Moss.
Moss says the $500 million capital raising which the Bank completed in September, as well as the $18 million raised by the recent Share Purchase Plan offer, provides Macquarie with both the strategic flexibility for general business development as well as the ability to develop further opportunities in the specialist funds area.
Overall funds under management rose by 12 per cent over the half year to $34.5 billion, with growth continuing across the listed, unlisted retail and unlisted wholesale sectors.
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