Banking heavyweight remains focused on broker and direct channels
Macquarie’s Australian retail business (aka Macquarie Banking and Financial Services, aka BFS) grew its home loans and business banking book by 17%, supported by a 21% surge in deposits, in the full year to 31 March.
The digital-only banking major highlighted strong demand in the owner-occupier and lower loan-to-value spaces as primary factors behind the solid result.
Macquarie said it “remains focused on growth opportunities” in both the broker and direct retail distribution channels.
While net interest income improved due to growth in the average loan and deposit portfolios, margins were compressed “due to lending and deposit competition and changes in portfolio mix”. MPA has requested further details on net interest margins.
Bad credit exposure increased due to “changes to recovery expectations for the residual car loan portfolio and deterioration in the macroeconomic outlook, partially offset by changes in the composition of portfolio growth”.
In terms of raw numbers, Australian home loan volumes increased 19% to $141.7 billion and business banking loan volumes were up 6% to A16.7 billion.
Like other banking majors, Macquarie saw an increase in credit impairments. BFS took a 45$ million credit impairment whack, marking stark contrast to the $15 million intake in the previous year due to impairment reversals.
Chief executive Shemara Wikramanayake nonetheless called it “a really resilient” result.
Profit was up 5% across the entire global Macquarie business, which Chair Glenn Stevens said as achieved “against an increasingly complex global backdrop”.
He added: “The world economy has continued to expand, with the United States in particular recording faster growth than other advanced economies over recent years.
“Development of technology continues at speed, inflation has generally declined, and short-term interest rates have fallen, presenting opportunities.”
He warned of price instability due to US President Donald Trump’s erratic tariff regime.
