Macquarie Bank expects very substantial increase in second half profit
18 February 2005
Macquarie Bank Chief Executive Officer Allan Moss said today he expects the Bank’s second half result for the six months to March 31, 2005, to be very substantially up on the prior corresponding period, even excluding the effects of the gain which has been brought to account as a result of the formation of the Macquarie Goodman Group.
Speaking at a briefing on the Bank’s operations to investors and analysts, Mr Moss said the Bank has benefited from performance fees on specialist funds, strong equity markets over the last two years and asset realisations.
He said all major businesses are performing very well. “We have achieved especially strong growth in Asia, Europe and North America. Internationally, the Macquarie Bank Group now operates from more than 40 offices in 22 countries, ” he said.
In commenting on the Bank’s business Groups, Mr Moss said:
The Investment Banking Group’s full year result is expected to be very substantially up on the prior corresponding period. The Group has experienced strong deal flow with a good success rate, excellent fund performance and good equity market conditions. Major recent transactions in the US include the listing of the Macquarie Infrastructure Company Trust on the New York Stock Exchange and the US$1.8 billion acquisition of Chicago Skyway Tollway by a Macquarie Infrastructure Group-Cintra consortium. European transactions include the £1.3 billion acquisition of ntl:Broadcast UK by a consortium led by Macquarie Communications Infrastructure Group and the €735 million acquisition of a 70 per cent interest in Brussels Airport International Company by a consortium led by Macquarie Airports.
The Treasury and Commodities Group’s full year result is expected to be up on the prior corresponding period due to strong results across all divisions. The Group has grown its US businesses, especially in energy and commodities.
The Banking and Property Group’s full year result is expected to be strongly up on the prior corresponding period. All major businesses are performing well and the Group has benefited from important initiatives in international property funds management and US mortgages. The Group brought to account a substantial profit on the merger of Macquarie Goodman Management Limited and Macquarie Goodman Industrial Trust to form the Macquarie Goodman Group, reflecting 12 years of business building by the property funds management team.
The Equity Markets Group’s full year result is expected to be similar to the prior corresponding period. While Hong Kong is down on the very strong corresponding year, this has been offset by growth in most other businesses.
The Financial Services Group’s full year result is expected to be up on the prior corresponding period due to a combination of strong revenue growth and cost management.
The Funds Management Group’s full year result is expected to be up on the prior corresponding period.
Mr Moss added: “Our investors and clients continue to do very well. Since December 1995, investors in an index of Macquarie’s specialist listed infrastructure and property funds would have received a return of 433 per cent compared to a return of 166 per cent for the Australian sharemarket. Since April 2003, Macquarie managed IPOs returned 86 per cent to investors, while Macquarie managed placements returned 41 per cent.”
The Bank expects to announce its full year results on Tuesday May 17, 2005.
For further information, please contact:
Chief Financial Officer
Tel: (612) 8232 3543
Macquarie Bank Limited
Tel: (612) 8232 5008
Mobile: (614) 1302 6309
Macquarie Bank Limited
Tel: (612) 8232 4102
Mobile: (614) 1069 9532