Macquarie Group expects to lift profits this financial year, thanks in part to the fall in the Australian dollar.
The investment bank says a rise in base and improvement fees and the fall in the local currency should see its net profit increase in 2013/14.
“Consistent with our previous statement, while market volatility makes forecasting difficult, it is currently expected that the FY14 net profit contribution from operating groups will be up on FY13,” the company said in a presentation to shareholders today.
“(The) FY14 result for the group is expected to be an improvement on FY13 provided market conditions for FY14 are not worse than those experienced over the past 12 months.”
The Australian dollar has fallen from well above 100 US cents to a little above 90 US cents in the past four months.
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Macquarie Group recorded a 17 per cent increase in net profit to $851 million in the year to March 31 2013.
Chairman Kevin McCann said Macquarie’s annuity-style businesses performed strongly during the year, but client activity had been subdued in the company’s capital markets-facing businesses.
Meanwhile, former productivity commission chairman Gary Banks will join the Macquarie board of directors from August 1.
“Gary has deep experience across economics, public policy and regulation in Australia and internationally,” Mr McCann told shareholders at the company’s annual general meeting in Melbourne.
“We believe his experience will be of significant benefit to Macquarie.”
