Macquarie consolidates industry position

Macquarie Bank’s funds management division - with a 17 per cent increase in funds under management to $4.7 billion over the past 12 months - and its financial services division, have emerged as major contributors to the group’s strong financial position, revealed at its annual general meeting (AGM) today.

Macquarie Bank’s managing director and chief executive officer, Alan Moss says the strength of the business is underpinned by the growth in annuity based revenue through the group’s wrap administration platform and cash management trust.

He says the group is also benefiting from initiated operations in Taiwan through a joint venture with United Securities Investment Trust Corporation, a Taiwanese fund manager.

The financial services group’s performance through the first quarter according to Moss is substantially up “as planned”.

“We have started the year well and expect both the first half and full year to be up on the prior corresponding periods, but the quantum of full year profit growth will depend on transaction flow and general market conditions,” Moss says.

“While market conditions are still uncertain, especially in international markets, our equities related businesses are well placed to benefit from any improvement in markets… [And] we will continue our successful approach of investing in growth through the business cycle.”

The company’s AGM was told that the bank’s funds under management had risen by 27 per cent to $52 billion, making it Australia’s fourth largest funds manager.

A breakdown of Macquarie Bank’s income streams provided to the AGM showed that 28 per cent had been derived from asset and wealth management compared with 33 per cent from investment banking.

The meeting was told the bank’s asset and wealth management groups now boasted around 550,000 retail clients at the same time as having five listed and 22 unlisted property funds with interests in around 360 properties.