The Macquarie Group Ltd (ASX:MQG) share price is up $2.13 or 1.98% to $109.88 just after the opening bell, as the asset-manager and investment bank on Friday announced a full-year profit increase of 15% to a record $2.56 billion.
Capital markets and annuity style businesses both performed strongly as net profit jumped from $2.22 billion a year ago.
Net profit from the Macquarie Capital unit soared 45%, or by $217 million, to $700 million after advising on 402 acquisitions worth $352 billion.
That was up from $159 billion worth of transactions in 2017.
Banking and financial services profit rose 9% to $560 million, with the group’s Australian mortgage portfolio rising 14%t to $32.7 billion – or about 2% of the local market.
The overall result for the 12 months to March 31 beat Macquarie’s upgraded February guidance for a 10 per cent increase in net profit. The company lifted its final dividend 40 cents to $3.20, fully franked.
“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,” chief executive Nicholas Moore said.
Macquarie Group said it expects its FY19 result to be “broadly in line” with FY18.
Mr Moore said: “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.”
The Macquarie Group Ltd share price has gained 19.52% in the last 12 months, while the S&P/ASX 200 Index has gained 3.62%. The Macquarie Group Ltd share price has risen 6.22% in the last 3 months.