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Australia's largest investment bank Macquarie Bank Ltd says first quarter earnings have risen "substantially" and that its outlook was for continued strong growth.
Macquarie chief executive Allan Moss said the bank's earnings for the three months ended June 30 had improved across all of its businesses.
"The first quarter's performance reflects good market conditions and continued investment in growth," Mr Moss said. The bank did not provide any figures.
Macquarie, which is holding its annual general meeting for shareholders today, in May reported a net profit of A$1.463 billion ($1.63 billion) for fiscal 2007.
The result was notable because more than half of Macquarie's income for the year ended March 31 was generated by the international businesses for the first time.
Mr Moss said today the bank's international income will continue to make an increasingly important contribution.
The bank also expects strong initial public offering and merger and acquisition activity and good growth in its specialist funds.
Its trading businesses are set to benefit from geographic and product expansion and good equity broking volumes, it added.
Mr Moss said Macquarie was planning for continued strong growth organically, and through some small and medium sized acquisitions.
"We expect to benefit from recent international staff growth and to continue to maintain or strengthen our market positions in Australia and internationally," he added.
In the first quarter, Macquarie's investment banking group business was substantially up from the prior corresponding period.
It is benefiting from good performances in equity capital markets and cash equities in Australia and Asia, as well as mergers and acquisitions.
The equity markets group was also "very substantially up" with strong demand in Australian, European and Asian markets.
The treasury and commodities group and real estate and financial services groups were also well up.
Over the medium term, Mr Moss said the outlook was positive.
"Continued strong global investor demand for quality assets, growth in the bank's capital base and the establishment of the non-operating holding company will assist the bank in achieving its international growth objectives," he said.
Macquarie plans to put its proposal to set up a holding company structure to shareholders later this year.
"Subject to market conditions not deteriorating materially, we expect continued growth in revenue and earnings across most businesses over time," he said.
"We also expect good growth in international businesses to continue."
Chairman David Clarke also repeated Macquarie's intention to keep its headquarters in Australia.
"Macquarie has evolved from an Australian institution growing internationally to a global institution headquartered in Australia," Mr Clarke said.
"While a high and growing proportion of income is now international, Australia remains the bank's largest market," he said.
"Australia enables us to access good quality staff and service industries and is in the Asian time zone, which is a significant region for us.
"For these reasons, we have resolved to remain headquartered in Australia for the foreseeable future."
- AAP
