By focusing on highly specialised market segments, Macquarie Group has avoided much of the margin pressure and lack of demand that have dogged the business banking divisions of the big banks. Macquarie's Corporate and Asset Finance division is involved in aircraft and rail leasing, energy asset and mining equipment finance, motor vehicle and general equipment finance, and real estate lending.On Friday, Macquarie released its financial report for the year to March. Overall, the group made a net profit of A$1.3 billion - up 49 per cent on the previous corresponding period.Corporate and Asset Finance contributed a pre-tax profit of $826 million to the group result, an increase of 19 per cent over the prior year.The division's asset portfolio grew by 14 per cent to $25.5 billion. Foreign exchange movements accounted for eight per cent of this growth.Business banking is a tough market. Earlier last week ANZ reported that it had very little growth in its business lending portfolio during the March half, that margins were squeezed and that the profit contribution from business banking was down seven per cent.Macquarie Group chief executive Nicholas Moore said the large physical assets that Corporate and Asset Finance specialised in were not as susceptible to margin pressure.Moore said: "There are only a certain number of aircraft in the world. Hard assets, such as rail and aircraft, do not have much sensitivity to short-term competition."Macquarie AirFinance currently leases 137 aircraft to 70 operators in 43 countries."There is more competitive pressure in equipment finance and motor vehicle leasing. However, we get some benefit from taking residual risk in that business. "Spreads have come down in Macquarie Leasing but so has the cost of funds."Moore said Corporate and Asset Finance did not have much exposure to conventional corporate lending, where the real margin pressure was being felt.Macquarie is looking for opportunities to expand the business. In 2013 it entered the rail leasing business in Europe, where it now has a $1.2 billion portfolio. This year it started a new business, Macquarie Rotorcraft, which leases helicopters. The company said there was growing demand for commercial helicopters in industries such as offshore oil and gas, medical transport, search and rescue and executive transport.Macquarie also entered the commercial solar energy finance market in Australia.