Macquarie performs but next year tougher

Macquarie Bank has announced a 48 per cent rise in profits buoyed by a 61 per cent increase in international income, but warns that the next twelve months may not be as rewarding.

Macquarie chief executive and general manager Allan Moss says the bank has benefited from favourable market conditions across the board as well as significant asset realisations.

Over the past year the bank has cashed in its expansion of infrastructure and specialised funds, hitting pay dirt in its strategy of investing in golf and leisure, utilities and airports, and shopping centres.

The growth in the infrastructure and specialised funds saw assets under management increase by 13 per cent to $17.8 billion as well as the establishment of three new international funds.

The funds management business has posted a modest rise of 18 per cent to $36.2 billion. The profits carried predominantly by the group’s institutional arm, as well as through the acquisition ofING’s Asian equity business.

Macquarie is now the third-largest fund manager in Australia with total assets under management of $63 billion, a rise of $11 billion over the past twelve months.

The margin lending business has also increased by more than 31 per cent and the banking and property group posted its sixth consecutive profit.

Macquarie Bank reported a total net profit of $494 million, up from $333 million last year.

Moss says the result demonstrates the group’s remained committed in maintaining its investment strategy during tough times.

“We will continue to invest in growth through the cycle,” Moss says, although he concedes that repeating the 2004 result in 2005 will be challenging.