Global finance giant Macquarie Group has released its latest financial results which show an increase in both net profits and loan portfolio within its banking arm.
These results will be released by chief financial officer Patrick Upfold in the Group’s quarterly financial update at the 24th CLSA Investors’ Forum in Hong Kong today and are an extended version of the results
reported in the AGM at the end of July.
Macquarie’s banking and financial services division now has more than one million Australian clients and had an Australian mortgage portfolio of $29.4bn as of June 2017. This was 2% higher than the March quarter in which the bank reported a loan portfolio of $28.7bn. The bank’s business loan portfolio sits at $6.7bn which was an increase of 3% from the quarter prior.
The banking division’s net profit contribution was recorded to be $513m for the 2017 financial year, which was an increase of 47% from the $350m recorded in FY16. This significant increase was partially due to a net gain of $192m received from the sale of the Macquarie Life business to Zurich Australia.
Overall business growth in Macquarie Bank was $114m for FY17 with a 6% increase in the Australian average loan portfolio across the year. This included a 9% increase in business lending and 5% increase in mortgages.
Net interest margin was up across mortgages and business lending in Australia, which was offset by lower net interest margins across banking deposits.
The firm expects the combined net profit contribution for FY18 to be “broadly in line” with those reported in FY17, Upfold said.
Over the medium term, strong growth opportunities are expected through both the third party and direct channels as well as through the Group’s white-label offerings, he added.
Macquarie Group as a whole reported assets under management of $462.5bn as of 30 June and an FY17 net profit of $2.2bn. The firm employed over 13,500 people in more than 27 countries as of 31 March this year. Of these, almost 2,000 worked in the banking and finance division.
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