Macquarie Group announces $A1,265 million full year profit

Macquarie Group (ASX: MQG; ADR: MQBKY) today announced a net profit after tax attributable to ordinary shareholders of $A1,265 million for the full year ended 31 March 2014 (FY14), up 49 per cent on the full year ended 31 March 2013 (FY13). Profit for the second half of the year (2H14) was $A764 million, up 52 per cent on the first half (1H14).

Macquarie Group Managing Director and Chief Executive Officer (CEO) Nicholas Moore said: “Global market conditions continued to improve in FY14, contributing to a significant increase in Macquarie Group’s operating income and profit, with all of Macquarie’s operating groups delivering increased net profit contributions.

“The Group’s profit for 2H14 was up 52 per cent on 1H14. Macquarie’s annuity-style businesses (Macquarie Funds (MFG), Corporate and Asset Finance (CAF) and Banking and Financial Services (BFS)) continued to perform well with combined net profit contribution up 12 per cent on 1H14 and up 29 per cent on 2H13. Macquarie’s capital markets facing businesses (Macquarie Securities (MSG), Macquarie Capital and Fixed Income, Currencies and Commodities (FICC)) delivered a significantly improved result with combined net profit contribution up 97 per cent on 1H14 and up 48 per cent on 2H13.”

Macquarie’s annuity-style businesses’ FY14 combined net profit contribution increased by $A445 million, or 26 per cent, on FY13. Macquarie’s capital markets facing businesses’ FY14 combined net profit contribution increased by $A450 million, or 68 per cent, on FY13.

“Notwithstanding the growth of Macquarie’s Australian businesses, international income accounted for 68 per cent of the Group’s total income5 for FY14. Income from the Americas accounted for 35 per cent of total income compared with 32 per cent from Australia. This reflects the favourable impact of foreign exchange movements, the organic growth of the Group’s operations in the Americas, as well as a number of successful acquisitions in the region in recent years, including Delaware Investments and Constellation Energy’s downstream gas business. The Americas also became Macquarie Capital’s largest income contributor for the first time, exceeding its very successful Australian business,” Mr Moore said.

FY14 operating expenses were $A6.0 billion up 15 per cent on FY13, with employment expenses of $A3.7 billion up 14 per cent on FY13.

The effective tax rate for FY14 was 39.5 per cent, broadly in line with FY13.

Macquarie’s assets under management (AUM) at March 2014 were $A427 billion, up from $A347 billion at March 2013.

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