Mac bank posts record interim profit
(23 November 2004 – Australia) Macquarie Bank has posted a record interim net profit of A$284 million, an increase of 17 percent, on the back of strong performances across the group.
Macquarie Bank chairman David Clarke said market conditions had been favourable and the bank had delivered a strong result despite lower performance fees from specialist funds.
He said international earnings were a "highlight" of the result, up 34 percent on the same period a year earlier to A$470 million.
Clarke said while the bank had been very active over the period, its key focus would be to ensure risks were appropriate relative to capital and revenue.
"There was substantial increase in the bank’s capital base during the period, largely attributable to Tier 1 eligible capital raising of ₤350 million in the United Kingdom in September 2004," he said.
"The bank remains strongly capitalised with a Tier 1 capital ratio of 12.6 percent, which provides the ability to both support business initiatives and maintain good credit ratings."
Macquarie Bank managing director and chief executive officer Allan Moss said results from Banking, Property, Treasury and Commodities were particularly strong.
He said the Investment Bank division was the largest contributor to the bank’s result but that its contribution was down compared with the same period last year. The bank’s Equity Markets business, on the other hand, was significantly up on last year but down on the previous period.
Financial Services and Funds Management both increased their contribution.
Moss said the timing of large property investment banking transactions, the US mortgage business becoming profitable, high volumes of Hong Kong equity derivatives sales and an increase in profit from the sale of derivative products in US and Europe were all important factors in the result.
He said international earnings were a "highlight" of the result, up 34 percent on the same period a year earlier to A$470 million.
Clarke said while the bank had been very active over the period, its key focus would be to ensure risks were appropriate relative to capital and revenue.
"There was substantial increase in the bank’s capital base during the period, largely attributable to Tier 1 eligible capital raising of ₤350 million in the United Kingdom in September 2004," he said.
"The bank remains strongly capitalised with a Tier 1 capital ratio of 12.6 percent, which provides the ability to both support business initiatives and maintain good credit ratings."
Macquarie Bank managing director and chief executive officer Allan Moss said results from Banking, Property, Treasury and Commodities were particularly strong.
He said the Investment Bank division was the largest contributor to the bank’s result but that its contribution was down compared with the same period last year. The bank’s Equity Markets business, on the other hand, was significantly up on last year but down on the previous period.
Financial Services and Funds Management both increased their contribution.
Moss said the timing of large property investment banking transactions, the US mortgage business becoming profitable, high volumes of Hong Kong equity derivatives sales and an increase in profit from the sale of derivative products in US and Europe were all important factors in the result.
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