Investment banking group Macquarie Group Ltd
(ASX:MQG) has reported a 21% rise in profit this morning putting its earnings back over the $1 billion mark after the effects of the global financial crisis caused a 50% drop in earnings last year.
Net profit after tax for the year to March 31, 2010 came to $1.05 billion, on a 20% increase in group income to $6.6 billion thanks to a fall in impairment charges and asset write-downs which fell to $388 million.
Macquarie’s previous full year result took a big hit from massive bad debt charges which resulted in its record 2008 result of $1.8 billion being slashed in half for the following year.
CEO Nicholas Moore says the full year result reflects improved market conditions and the diversification and global reach of the company’s businesses.
Mr Moore says while market conditions continue to improve continuing uncertainty makes forecasting difficult, however the company currently expects improved operating results for all of its businesses in fiscal 2011 compared to fiscal 2010.
Macquarie declared a final dividend of $1 a share, up from 40 cents last year. Macquarie Group earned $871 million for the 12 months to March 30, 2009.
