Macquarie Bank aiming to repeat performance

SYDNEY - Macquarie Bank Ltd aims to this year repeat the operational result for 2004/05, and over time continue the good growth in revenue and earnings across most of its businesses.

The investment bank made the comments today after reporting a 67 per cent increase in full year net profit to A$823 million ($890.3 million).

The result included a one-off A$91 million after-tax benefit from the formation of the Macquarie Goodman Group (MGQ) in January.

Excluding that benefit, net profit was up 48 per cent to A$732 million for the year to March 31, 2005.

"The bank is aiming to repeat the full year 2005 result for the year ending 31 March 2006, excluding the one off profit realisation on the formation of MGQ and the impact of the introduction of International Financial Reporting Standards," Macquarie chief executive Allan Moss said in a statement.

"Achieving that result will, however, be subject to swing factors including the quantum of performance fees on specialist funds, market conditions and asset realisations.

"We note that equity markets conditions have recently softened and we may not achieve this outcome if this softening is sustained."

Mr Moss added that over the medium term the bank continues to be well placed due to good businesses, diversification, benefits of major strategic growth initiatives, committed quality staff and effective prudential controls.

"Subject to market conditions not deteriorating materially, the bank expects continued good growth over time in revenue and earnings across most businesses and continued good growth in international businesses," Mr Moss said.

The bank declared a special dividend of 40 cents per share, in addition to a final dividend of A$1.00 per share, up from 70 cents the prior year.

Both the final and special dividend are franked to 90 per cent.

It takes total dividends for the year to A$2.01 per share compared to A$1.22 the previous year.

Macquarie Bank said the special dividend was declared because of the significant one off profit recognised from the formation of the Macquarie Goodman Group.

Chairman David Clarke said the net profit was another record result.

"The year was characterised by substantial international growth," Mr Clarke said.

"The continuation of business expansion and significant international achievements resulted in international income growth of 83 per cent to A$1.3 billion."

Mr Moss said international income represented approximately 37 per cent of total income.

"International income is now half, or more than half the income from a number of business groups," Mr Moss said.

International income was up 83 per cent to A$1.273 billion.

Assets under management during the year were up 42 per cent to A$88.9 billion.

Mr Moss said all groups made record contributions to the result.

- AAP