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The bank revealed at its annual general meeting yesterday that its mortgage portfolio – which it claims represents 1.7 per cent of Australia’s total mortgage market – increased by 44 per cent to $27 billion in FY15, including a 10 per cent increase in the June quarter alone.
Macquarie Bank also grew its net profit by 10 per cent over the year to $285 million. Its business banking portfolio increased 27 per cent to $5.2 billion, while its wealth management portfolio posted a 19 per cent gain, rising to $48 billion.
Looking more broadly at the group, Macquarie boosted its overall profit by 27 per cent to $1.6 billion, while its operating income rose by 14 per cent to a record $9.3 billion.
Macquarie said it remains well capitalised with APRA Basel III Group capital of $15.8 billion at 30 June – $2.4 billion above the group’s minimum regulatory capital requirement needed from 1 January 2016. However that figure was down slightly on the $2.7 billion excess at 31 March 2015.
The APRA Basel III Common Equity Tier 1 (CET1) ratio for Macquarie Bank was 9.9 per cent at 30 June – up from 9.7 per cent at 31 March 2015.
Macquarie said that while APRA’s proposed changes to the level of capital required to be held against residential mortgages do not come into effect until 1 July 2016, their impact on its capital surplus would be approximately $150 million – equivalent to a 20-basis-point reduction in the bank’s CET1 ratio.
“This increased capital requirement will be accommodated from the existing capital surplus and retained earnings," it said.
Mortgage Business reported in July that Macquarie was growing its investor lending books faster than APRA guidelines in the year to May, recording 86.8 per cent investor growth over the period, compared to 74.8 per cent in the 12 months to April.
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