In its results, posted to the Australian Securities Exchange on Friday, the bank said staff numbers across the business were down, with the Banking and Financial Services division seeing the biggest drop.
The division shed 265, or 8.5 per cent, of its global staff – a fall from 3,113 in March 2012 to 2,848 staff as at 31 March 2013.
With the Banking and Financial Services division, Macquarie saw a 2 per cent increase in fee commission income to $3,422 million for the year ended March 2013 – up from $3,364 million in March 2012.
Macquarie Wrap’s funds under administration increased by 14 per cent to $25.1 billion in the year to 31 March 2013. Perpetual’s $7.6 billion private wealth administration platform was moved over to Macquarie Wrap after the completion date.
The Banking and Financial Services division delivered a net profit contribution of $335 million, up 22 per cent on the prior year.
Within the division, Macquarie Private Wealth (based predominantly in Australia) received an enforceable undertaking from the Australian Securities and Investments Commission (ASIC) in January.
Among other things, ASIC found instances of ‘client files not containing statements of advice’, and ‘advisers failing to demonstrate reasonable basis for advice provided to the client’.
Commenting on the enforceable undertaking at the group’s results announcement in Sydney on Friday, Macquarie Group managing director and chief executive Nicholas Moore said it was “a lowlight for the year”.
Managing director of Macquarie Bank Limited Greg Ward said the Banking and Financial Services division was “very focused” on the enforceable undertaking.
“We’ve been working on it for three months, and we’re well progressed. I think we’ve got a good understanding of what the regulator would like to see. The regulator has appointed an independent expert and we will be working with them in due course,” Mr Ward said.
Regarding the funds management side of the business, Macquarie Funds saw a net profit contribution of $755 million, up 17 per cent on the previous year.
Macquarie Group as a whole had $347 billion in assets under management as at March 2013, up from $327 billion in March 2012.
Macquarie’s annuity-style businesses (Macquarie Funds, Corporate and Asset Finance and Banking and Financial Services) saw their combined net profit contribution up 10 per cent on the previous year.
