Macquarie Group has lifted its full year profit 49% as the company takes advantage of improved conditions in equity markets.
The investment bank made a net profit of $1.265 billion for the 12 months to March 31, up from $851 million a year ago.
As a result, Macquarie has declared a 40% franked final dividend of $1.60 per share, up from the 2013 final distribution of $1.25.
Chief executive Nicholas Moore said all of the company's divisions had benefited from the improvement in global markets.
"Global market conditions continued to improve in FY14, contributing to a significant increase in Macquarie Group's operating income and profit, with all of Macquarie operating groups delivering increased net profit contributions," he said.
Moore said most of the bank's profit had come from its offshore operations, which also benefited from a lower Australian dollar.
"Notwithstanding the growth of Macquarie's Australian businesses, international income accounted for 68% of the group's total income for FY14.
"Income from the Americas accounted for 35% of total income compared with 32% from Australia," he said.
Profit from the group's market-facing business was up 68% to $450 million, while its annuity-style business lifted its profit 26% to $445 million.
Macquarie expects further improvements from its businesses in 2014/15, but anticipates its profit will be roughly in line with this year's result, which was boosted by one-off gains from its holding in Sydney Airport, which it exited during the year.
Shareholders received a special dividend of $1.16 per share following the Sydney Airport.
"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 our 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," he said.Author : AAP Source : Financial Standard