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According to Macquarie Group’s half-year 2019 financial results (1H19), its home loan portfolio increased by 10 per cent half-on-half to $36.1 billion.
When compared to the previous corresponding period (1H18), Macquarie’s loan book has increased by $6.2 billion, from $29.9 billion.
Macquarie noted that its share of the mortgage market remained stable at 2 per cent.
Macquarie Group also reported an overall net profit of $1.31 billion, up by 5 per cent from 1H18, with its banking and financial services (BFS) division delivering a net profit contribution of $296 million, up by 3 per cent from $286 million in 1H18.
Macquarie has attributed growth in its BFS division to increased income from growth in deposits, which rose by 8 per cent from 2H18 to $49.4 billion, with funds on platform also increasing, rising by 7 per cent to $88.1 billion.
However, the group noted that the Australian loan portfolio and funds on platform was partly offset by the “entire period effect of the Australian government Major Bank Levy relative to the prior corresponding period, and increased costs associated with investment in technology projects and headcount”.
Macquarie reported that the result was also offset by expenses associated with the merger of its private bank and private wealth businesses.
Incoming group CEO Shemara Wikramanayake, who is set to replace Nicholas Moore on 30 November, said that she expects further improvement in the group’s overall performance, predicting Macquarie’s FY19 result to be up by 10 per cent from FY18.
“Macquarie remains well positioned to deliver superior performance in the medium term due to our deep expertise in major markets, strength in diversity and ability to adapt the portfolio mix to changing market conditions, the ongoing benefits of continued cost initiatives, a strong and conservative balance sheet and a proven risk management framework and culture,” Ms Wikramanayake said.
[Related: Major bank CEO intent on reducing ‘churn’]
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