No Hayne pain for Macquarie
The Hayne royal commission cast a long shadow over the ANZ and NAB financial reports last week, but not over Macquarie Group.Macquarie reported its results for the year to March 2019 on Friday, and the banking and financial services division reported strong growth in lending and deposits, and reasonable growth in income and profit. The only hint of a regulatory impact was the contribution to higher expenses.The BFS division reported a 4 per cent increase in income to A$2.1 billion. Net interest income grew 6 per cent to $1.7 billion. Net profit rose 3 per cent to $756 million.Macquarie's mortgage portfolio grew 18 per cent to $38.5 billion over the year to March. Total deposits were up 17 per cent to $53.4 billion.Business banking loans were up by 12 per cent to $8.2 billion and business deposits were up by 7 per cent.The vehicle finance portfolio decreased 5 per cent to $15.2 billion, in line with a reduction in new vehicle sales.The division has 1.5 million customers.Macquarie says it sees plenty of opportunity to grow its business banking activities by "extending into adjacent segments".Operating expenses were up 4 per cent, due in part to higher regulatory costs.