Powered by MOMENTUM MEDIA
subscribe to our newsletter

Macquarie grows mortgage portfolio to nearly $30bn

Expectations for the 2018 financial year are optimistic at Macquarie Group. At its annual general meeting (AGM), the group posted a growth of 2 per cent in its Australian mortgage portfolio.

Macquarie Group’s mortgage portfolio as of 30 June was $29.4 billion, an increase of 2 per cent from 31 March 2017. Funds on its platforms, including Macquarie Vision and Macquarie Wrap, were also up by 10 per cent on 31 March, to $79.1 billion.

According to the bank, the increase was “largely due to the final migration of full service broking accounts to the Vision platform”.

The bank reported an overall year-on-year profit of 7.5 per cent ($2.2 billion) for the fiscal year ending 31 March. The “record” result was attributed by group chairman Peter Warne to the “diversity” of Macquarie Group’s businesses and “the ability to adapt to changing conditions”.

For the year ending 31 March 2018, the group expects the combined net profit contribution from operating groups to be "broadly in line with the year ended 31 March 2017".

The group added that its short-term outlook is subject to market conditions, the possibility of regulatory changes, “tax uncertainties” and the impact of foreign exchange.

Advertisement
Advertisement

PROMOTED CONTENT


Managing director and chief executive officer Nicholas Moore said: “Macquarie remains well positioned to deliver superior performance in the medium term due to its deep expertise in major markets; strength in diversity and ability to adapt its 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.”

Bank levy

Speaking at the AGM, Mr Warne also took aim at the federal bank levy, arguing that the tax will have a “disproportionately higher” effect on Macquarie Group than the other major banks “given our business mix is more heavily weighted to wholesale and international business”.

“Given the relatively small size of our Australian banking business, we were surprised by our inclusion in the group to pay this levy,” Mr Warne said.

He added: “We have also expressed our concern to the government given the benefit we bring to domestic competition and innovation, the role we play in bringing offshore income into the Australian economy and the potential for unintended consequences resulting from the levy.”

[Related: Rate hikes to follow APRA’s latest move]

Macquarie grows mortgage portfolio to nearly $30bn
mortgagebusiness

Latest News

The chairman of the financial services regulator has resigned from his position, effective immediately. ...

Refinancing settlements for the first nine months of the calendar year 2020 are up 27 per cent on last year’s volumes, having peaked in Ju...

The Tasmanian-based lender has seen a 43 per cent rise in settlements in the first quarter of the financial year, driven by strong demand fr...

FROM THE WEB

Join a group of highly informed brokers.

Broker Pulse, a community-driven knowledge base of lender performance Reveal exactly which lenders are making life easiest for brokers and their clients by taking this monthly survey and joining a group of highly informed brokers who leverage these insights every month.

JOIN NOW
podcast

LATEST PODCAST: Victoria’s surprising appetite for new homes

Do you expect to see strong uptake of the HomeBuilder scheme?

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.