Macquarie Group has recorded a 39 per cent increase in its half-year profit thanks to improved performances from its annuity and capital markets businesses.
The investment bank made a net profit of $501 million for the six months to September 30, up from $361 million last year.
Net revenue rose to $3.68 billion during the six month period, up 20 per cent compared to the same time last year.
Macquarie Group chief executive Nicholas Moore said the annuity business recorded a 24 per cent increase in profit, while earnings from the capital markets business were also up significantly compared to a year ago.
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The company expects its improved performance to carry into the second half of its financial year, assuming the market conditions do not deteriorate significantly.
“The group remains well-positioned, with a strong and diverse global platform and specialist skills across a range of products and asset classes,” Moore said.
“All of this is built on the foundation of a strong balance sheet, significant surplus capital, a robust liquidity and funding position and a conservative approach to risk management.”
The group continued to pay an effective tax rate of 38 per cent, well above the Australian corporate tax rate of 30 per cent.
Macquarie has announced an interim, 40 per cent-franked, dividend of $1 per share, up from 75 cents, unfranked, last year. But it is down from the $1.25, 40 per cent-franked, 2013 final distribution.
