Macquarie’s mortgage portfolio jumps by 14%

Macquarie Bank has expanded its mortgage book by 14 per cent, bringing its total mortgage portfolio to $32.7 billion for the 12 months ending 31 March 2018 (FY18).

The lender’s home loan portfolio growth now represents approximately 2 per cent of the Australian mortgage market.

The bank’s net profits for its banking and financial services (BFS) division also grew, rising by 9 per cent, from $513 million in FY17 to $560 million in FY18.

“The improved result reflects increased income from growth in average Australian loan, deposit and platform volumes, as well as the non-recurrence of expenses recognised in the prior year,” Macquarie said.

The bank’s capital equity ratio sits at 11 per cent, 3 per cent above the Australian Prudential Regulation Authority’s (APRA) 8 per cent minimum.

Macquarie Group’s total net profits also increased, jumping by 15 per cent from FY17 to $2.56 billion (after tax).

The group also reported a net operating income of $10.9 billion, up by 5 per cent on FY17, while its operating expenses also rose, increasing by 3 per cent to $7.45 billion in the same period.

Reflecting on the group’s results, Macquarie Group managing director and chief executive officer Nicholas Moore said: “FY18 highlighted the strength of Macquarie’s global platform, the diversity of its business mix and ongoing ability to adapt to changing market conditions and client needs.”

Mr Moore added: “The group remains well positioned, with a strong and diverse global platform and deep expertise across a range of products, markets and asset classes. This is built on the foundation of a strong balance sheet, surplus capital, a robust liquidity and funding position, and a conservative approach to risk management which is embedded across all operating groups.”

[Related: Macquarie offloads shares in YBR]