Macquarie business lending outperforms home loans

By James Mitchell

05 August 2016

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Macquarie Bank has grown its business loan portfolio more than its mortgage book over the last quarter after posting a $2 billion profit for the year to 31 March.

Macquarie’s Banking and Financial Services (BFS) business, which includes deposits, home and business lending activities, saw all loan books grow over the three months to 30 June.

The bank’s mortgage book grew by 1 per cent to $28.8 billion while its business banking loan portfolio increased by 3 per cent to $6.1 billion over the quarter.

In its full year profit result earlier this year, Macquarie Group reported a record profit of $2.1 billion for the year to 31 March, up 29 per cent.

Announcing the group’s quarterly earnings last week, Macquarie CEO Nick Moore said the group’s annuity-style business — which represents more than 70 per cent of its total performance — continued to perform well.

Meanwhile, Macquarie Group chairman Peter Warne highlighted at the group’s AGM that the company has profited every single year since its establishment in 1969.

“This record of unbroken profitability is testament to Macquarie’s culture of adapting the portfolio mix to changing market conditions, a strong and proven risk management framework, and a strong balance sheet and capital position,” he said.

As at 30 June this year, the group holds a surplus of $3.5 billion in capital. The Bank's CET1 ratio is 10.3 per cent, while its leverage ratio is 5.3 per cent.