SYDNEY - AFP
Australia\'s biggest investment bank Macquarie posted a full-year net profit of Aus$956 million (US$1.05 billion) Friday, down nine percent on the previous financial year. Macquarie Group\'s net profit, down from Aus$1.05 billion a year ago, was broadly in line with expectations given subdued equity market conditions. Macquarie chief executive Nicholas Moore said the group, which has assets under management of Aus$310 billion, expected an improved result in 2012. \"However, the FY12 result will be dependent upon market conditions, particularly for Macquarie Securities and Macquarie Capital, which are assuming better market conditions than FY11,\" Moore said in a statement. \"The FY12 result also remains subject to a range of other challenges including increased competition across all markets, the cost of our continued conservative approach to funding and capital, and regulation, including the potential for regulatory change.\" As the Australian dollar soars, setting historic highs and breaching approaching US$1.10 in recent days, foreign exchange translation was estimated to have a negative impact of approximately five percent on earnings, Macquarie said. The group said operating income was up 15 percent year on year at Aus$7.6 billion, while it had capital of Aus$12.1 billion -- about Aus$3.0 billion more than its minimum regulatory capital requirement.