By Alice Uribe


SYDNEY--Macquarie Group Ltd., Australia's biggest investment bank and asset manager, reported a 56% rise in annual profit, driven partly by a strong result in its markets-facing businesses that include Macquarie Capital.

Macquarie on Friday said its net profit totaled 4.71 billion Australian dollars (US$5.49 billion) in the 12 months through March. Consensus forecasts compiled by FactSet projected Macquarie's full-year net profit would be A$4.38 billion.

"While many of the regions and markets in which Macquarie operates saw heightened levels of volatility this year, our longstanding strategy to address key areas of unmet need in the community is unchanged," said Chief Executive 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 FY 2022."

Directors of the company declared a final dividend of A$3.50 per share, compared to a final dividend of A$3.35 last year.

Macquarie, which has a reputation among analysts for conservative forecasts, didn't provide specific guidance, but Ms. Wikramanayake said the company "remains well-positioned to deliver superior performance in the medium term."

The company's annuity-style activities, which are undertaken in part by Macquarie Asset Management, generated a combined net profit of A$4.13 billion, up 25% from a year earlier.

Its markets-facing activities, which are undertaken by Macquarie Capital and most businesses in the Commodities and Global Markets unit, delivered a combined net profit contribution of A$5.33 billion, up 92% on the previous year

Macquarie Capital delivered a net profit contribution of A$2.4 billion, more than tripling on year, which the company said reflected significantly "higher fee and commission income due to mergers and acquisitions and debt capital markets activities."

CGM delivered a net profit contribution of A$3.91 billion, up 50% from the same time last year.

"The result was driven by increased revenue across Commodities with strong risk management revenue driven by increased client hedging activity and trading activity as a result of elevated volatility and commodity price movements," said Macquarie.

Macquarie's net operating income was A$17.32 billion, up 36% on year, while operating expenses rose 22% to A$10.79 billion.

The Australian financial services company said it maintains a strong capital position and a well-funded balance sheet, with group surplus capital of A$10.7 billion at the end of March, up from A$8.8 billion the year before.

Macquarie's banking unit has a common equity tier 1 level 2 ratio of 11.5%.

As previously announced, Peter Warne will step down as chair of the Macquarie Group and Macquarie Bank on May 9, and will be replaced by former Reserve Bank of Australia governor Glenn Stevens.


Write to Alice Uribe at alice.uribe@wsj.com


(END) Dow Jones Newswires

05-05-22 1919ET