Macquarie reports lift for wealth management business

The banking giant’s platform business recorded funds on platform of $118.6 billion in the 12 months to 31 March, up 17 per cent on a year earlier, with net flows of $8.2 billion logged during the period.

The firm said that managed accounts funds under administration were $7.9 billion as of March this year compared to $5.4 billion in March 2021, as the giant looks to pursue the continued expansion of its Macquarie Wrap managed accounts offering.

Overall, Macquarie posted a net profit after tax of $4.7 billion, an increase of 56 per cent on the previous year.

Its assets under management (AUM) reached $774.8 billion during the period, up 37 per cent on a year earlier, which the firm largely attributed to its acquisition of Waddell & Reed Financial, AMP Capital’s private investment business and Central Park Group along with investment by private markets-managed funds and net inflows in public investments.

“While many of the regions and markets in which Macquarie operates saw heightened levels of volatility this year, our outstanding strategy to address key areas of unmet need in the community is unchanged,” said Macquarie Group MD and CEO Shemara Wikramanayake.

“Over time, this has seen us build deep and differentiated franchises in each of our areas of activity, all of which delivered sound outcomes and strong performance in FY22.”

The firm reported a 92 per cent increase in net profit contribution from market-facing activities undertaken by Macquarie Capital as well as its commodities and global markets businesses to $5.3 billion.

Shareholders will receive a final ordinary dividend of $3.50 per share that is 40 per cent franked, up from a dividend of $3.35 for the previous year.

Looking ahead, the firm said it would continue to maintain a cautious stance with a conservative approach to capital, funding and liquidity that positioned it well to respond to the current environment.

“Macquarie remains well positioned to deliver superior performance in the medium term,” said Ms Wikramanayake.

“This is due to our deep expertise in major markets; strength in business and geographic diversity and ability to adapt the portfolio mix to changing market conditions; an ongoing program to identify cost saving initiatives and efficiency; a strong and conservative balance sheet; and a proven risk management framework and culture.”

Jon Bragg

Jon Bragg is a journalist for Momentum Media's Investor Daily, nestegg and ifa. He enjoys writing about a wide variety of financial topics and issues and exploring the many implications they have on all aspects of life.