Macquarie’s Financial Services businesses boosted profits by a third in the 2007/08 financial year thanks to record broking levels, increased market share and strong super inflows.
Overall, Macquarie Group posted a record full year net profit after tax of $1.8 billion, a 23 per cent increase on last year.
The results showed the financial services business arm expanded its total assets under advice, administration and/or management by 15 per cent to $80.9 billion, from $70.5 billion in the corresponding period.
In February Macquarie’s Financial Services Group integrated with the Banking and Securitisation Group to form the Banking and Financial Services Group (BFS).
BFS group head Peter Maher said the group in a good position for continued growth in profits.
Macquarie Adviser Services (MAS) increased both profit and client numbers substantially.
Australia’s largest cash fund, the Macquarie Cash Management Trust (CMT), increased 25 per cent from $14.1 billion to $17.6 billion.
Funds under administration in Macquarie Wrap declined slightly to $22.5 billion compared to the prior corresponding period due to market volatility.
The group’s superannuation portfolio increased 20 per cent from $20.4 billion to $24.5 billion, capitalising on the Government’s superannuation reforms.
MAS-owned software Coin Financial Planning has continued to grow. It took a 50 per cent stake in paraplanning hub Outplan and practice management company Olicc.
“The group expects retail volumes to remain volatile and new equity issue activity to be reduced. It anticipates continued demand for cash, fixed income and wrap products,” the BFS results stated.
It continued to develop internationally with a joint venture agreement with Indian wealth management company Religare and the launch of Singapore-based private wealth business.
Macquarie Private Wealth (MPW) has retained its position as the number one full-service retail stockbroker in Australia in terms of volume and market share.
Macquarie Group chief executive and managing director Alan Moss will retire on May 24 after 30 years with the bank. Macquarie Capital head Nicholas Moore will take over.
