Australia’s Macquarie Bank Record Profits Sees Stock Hit Record High

Australia’s biggest investment bank, Macquarie Bank Delivered a $2.6 billion full-year profit. Increased activity in energy and infrastructure projects in Australia and the US through Macquarie Capital stood out.

Australia’s biggest investment bank, Macquarie Bank Delivered a $2.6 billion full-year profit. Increased activity in energy and infrastructure projects in Australia and the US through Macquarie Capital stood out.

Macquarie Global Income

Macquarie Bank – Another Australian Global Success Story

Macquarie Bank has been coined the millionaire factory, so it was no surprise that chief executive Nicholas Moore is now Australia’s highest paid executive, earning $18.9 million this year. Shemara Wikramanayake, Macquarie’s head of Asset Management and Moore’s heir apparent, saw her pay package jump from $15.3 million to $16.7 million last year.

 Mr Moore said of the results the global platform was “This built on a foundation of a strong balance sheet, surplus capital, robust liquidity and a conservative approach to risk management,” in a statement to the ASX.

The large money center retail banks in Australia have had a difficult year in a lower rate environment and the negative fall out from the Banking Royal Commission. The result has been flat profits, a stark contrast to Macquarie’s record $2.6 billion full-year profit.  The earnings came in t is 15 per cent higher than last year and beat analysts’ expectations handedly. Macquarie aso derives nearly two thirds of it’s earnings from overseas, successfully diversifying risk form the local scene.

Macquarie Bank ATH

Notably thee growth in earnings was largely driven by paying a lower tax rate, the income tax expense for Macquarie’s 2017 financial year was $868 million, a 6 per cent decrease from $927 million in 2016.

Macquarie noted in its release to the ASX. “The decrease was mainly due to changes in the geographic composition of earnings, with increased income being generated in Australia and the UK, and lower income in the US, combined with reduced tax uncertainties,” Macquarie said. The effective tax rate of 28.1 per cent was down from 31.0 per cent in 2016 financial year.

Highlights

Macquarie Capital, the bank’s corporate advisory and financing arm, stoodout with earnings up 45 per cent, largely from increased activity in energy and infrastructure projects in Australia and the US.

The Asset Management arm reported earnings were up 10 per cent, with a solid increase in funds-under-management only partially unwound by adverse currency movements.

The local retail banking and financial services arm earnings were up 9 per cent. The unit is seen gaining from not been drawn into the banking royal commission. Macquarie’s lending growth pushing up results.

Source: Macquarie, ASX From a sunburnt country…

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