Local arm lifts Macquarie

Sydney-based Macquarie Bank enjoyed a 16.9 per cent lift in March-year tax-paid earnings to $A165 million, helped by a strong performance from its New Zealand arm.

The major contribution locally came from advising the Bank of Scotland on its $960 million divestment of CountryWide Bank in New Zealand to Lloyds Bank.

This deal helped Macquarie New Zealand to once again take second spot in the merger and acquisition league tables.

Macquarie New Zealand has also started the new financial year strongly, representing the United States energy company Edison Mission in its $1.2 billion purchase of a 40 per cent holding in Contact Energy.

The bank's profit performance represents a return on average shareholders' funds of 26.8 per cent a year.

Profit before tax rose 30.5 per cent to $A217.8 million.

Total operating income for the year was $A831.2 million, up from $664.7 million previously.

Fee and commission income made a major contribution to earnings, rising by 32.7 per cent to $A562.1 million. But trading income fell to $A131.3 million from $A169.1 million.

Total operating expenses rose 23.3 per cent to $A613.4 million, reflecting in part a 29.3 per cent rise in employment expenses from increased staff numbers and performance related remuneration.