Macquarie Bank has delivered a $730 million profit after tax for the half year ended September 30, 2006 – an increase of 51% when compared to $482 million recorded in September 2005.
Excluding the realisation of the Bank’s holding in the Macquarie Goodman Group, the result was a 32% increase on the prior corresponding period.
During in the first half year, total operating income was $3.15 billion, up 46% from $2.16 billion for the prior corresponding period.
This was driven by profits from the disposal of equity investments and realisations of assets (including the $302 million profit on sale of the Bank’s investment in Macquarie Goodman), and favourable market conditions for investment banking activities.
Net fee and commission income increased 16% to $A1.43 billion from the prior corresponding period, with significant contributions from mergers and acquisitions, advisory and underwriting income, funds management fees and brokerage and commissions.
Assets under management were up 37% on the prior corresponding period to $153 billion. There was strong demand for unlisted funds, which constituted 78% of the $7.2 billion raised over the half year for specialist funds.
Macquarie Bank’s chief executive Allan Moss said all six major business groups made record first half contributions to the result.
The Investment Banking Group continued to be the largest contributor to the Bank’s overall result, with an excellent contribution which was 61% up on the prior corresponding period.
Banking and Property Group’s contribution was up over 280% on the prior corresponding period, including the MGQ realisation. While the year-on-year contribution is expected to increase, the first half was marginally down on the prior corresponding period (excluding the MGQ realisation), primarily due to the timing of a number of asset sales.
Some Asia-Pacific highlights included the establishment of the Macquarie Goodman Hong Kong Wholesale Fund – a $HK4.8 billion ($A850 million) unlisted property fund established by Macquarie Goodman Asia (JV between MBL and Macquarie Goodman).
The Macquarie Korea Opportunities Fund committed funds of over $A1 billion; acquisition of a 40% stake in six container terminals (Taiwan, Japan, US) controlled by Hanjin Shipping.
And yesterday, Macquarie Bank’s partner Macquarie Global Property Advisors established an unlisted Japanese property fund, MGP Japan Core Plus Fund which raised $US865 million.
The Bankwill pay an interim dividend of 125 cents per ordinary share franked to 100% for the half year ended September 30, 2006, up 39% on last year’s interim dividend of 90 cents per ordinary share, franked to 90%.
Earnings per share for the six month period increased 41% to 300.9 cents from 212.9 cents for the prior corresponding period.
By Kathryn O’Meara
