Macquarie Group’s banking and financial services division attracted a huge inflow of deposits during the six months to September, with the deposit book growing 16 per cent half-on-half to A$74.4 billion. Over the year to September the deposit book has grown more than 30 per cent.
Deposits made up 48 per cent of the group’s balance sheet funding at the end of September – up from 42 per cent in March.
The strong deposit flow contributed to a net table funding ratio of 121 per cent but, on the downside, margin compression on deposits was a drag on earnings.
The banking and financial services division made a net profit of $317 million during the six months to September – 18 per cent down on the previous corresponding period.
The division made credit and other impairment charges of $78 million, which was 86 per cent higher than the previous corresponding period.
Net interest and trading income rose 1 per cent to $844 million, compared with the previous corresponding period. Wealth management fee income was down 6 per cent and banking and leasing fee income was down 18 per cent.
Home loan balances grew 10 per cent half-on-half to $57.4 billion, while business loan balances fell 1 per cent to $8.9 billion. Vehicle finance volumes fell 9 per cent to $12.4 billion.