International growth underpins Macquarie Bank result

16 May 2006

Macquarie Bank today reported its 14th consecutive year of record profit bouyed by the continued growth of its international activities, which now account for 48 per cent of the Bank’s operating income.

The Bank reported an after-tax profit of €541 million for the full year to 31 March 2006, an increase of 13 per cent on the prior year. Removing the significant AIFRS¹ impacts, the profit after tax from ordinary activities would have represented an increase of 33 per cent on the prior year. The Bank’s total assets under management increased 45 per cent to €83 billion. Total assets grew by 56 per cent to €63 billion.

Income from Macquarie’s European activities was €382 million, up 50 per cent on last year. Macquarie’s European income accounts for 32 per cent of total international income.

According to Jim Craig, Head of the Macquarie Bank Group in Europe, the past year has been one of continued growth and consolidation for Macquarie’s European operations.

“Our approach in Europe is to focus on select markets where we believe we bring specialist expertise and can add real value. The year has seen us reinforce our position in established businesses as well as further developing some newer initiatives,” Mr Craig said.

In the infrastructure sector, Macquarie-managed funds have acquired major stakes in assets including French motorway company Autoroutes Paris-Rhin-Rhône (APRR), Copenhagen Airport and NRE, the Netherlands gas and electricity distribution network². The Macquarie European Infrastructure Fund, which closed during the year with commitments of €1.5 billion, is now approximately 70 per cent committed.

In the real estate sector Macquarie established a joint venture with UK-based office park developer Akeler, commencing with acquisitions of Reading International Business Park and Central Quay, Glasgow, for a total value of £150 million (85 per cent acquired by Macquarie).

The Bank also established a joint venture with Abu Dhabi Commercial Bank, involving Macquarie’s investment banking and treasury and commodities businesses.

Macquarie’s Italian mortgages business continued to expand, with the opening of a new office in Rome.

“Macquarie’s early successes laid a strong foundation on which we continue to build. From the London-based businesses, established in 1989, we have selectively moved into adjacent and complementary areas and now have a solid base of specialised businesses which are focused on adding value for clients and investors,” Mr Craig said.  

Highlights for Europe and the Middle East - year to 31 March 2006

• A consortium comprised of Eiffage SA, Macquarie Infrastructure Group (MIG) and Macquarie European Infrastructure Fund (MEIF) acquired the majority interest in Autoroutes Paris-Rhin-Rhône (APRR)
• Macquarie Airports acquired the majority stake in Københavns Lufthavne A/S (Copenhagen Airports)
• Macquarie European Infrastructure Fund achieved final close with investor commitments of €1.5 billion. The Fund also acquired Wightlink, the ferry service to the Isle of Wight and reached agreement to acquire 49 per cent of NRE, the Netherlands gas and electricity distribution network
• Macquarie Capital Alliance Group (MCAG) acquired the YBR Group (now known as European Directories) and BBC Broadcast (now known as Red Bee Media)
• Macquarie International Infrastructure Fund Limited (MIIF) acquired 100 per cent of a German tank storage business (now known as TanQuid)
• A Macquarie-led consortium acquired the Norwegian-headquartered commercial explosives company Dyno Nobel for $US1.7 billion
• Macquarie Bank established a property joint venture with UK-based office park developer Akeler with acquisitions of Reading International Business Park and Central Quay, Glasgow for a total value of £150 million (85 per cent acquired by Macquarie)
• Macquarie Mortgages Italy continued to expand with the opening of an office in Rome
• Treasury and Commodities Group and the Investment Banking Group established joint ventures with Abu Dhabi Commercial Bank.

¹ Comparatives with the previous year have been restated in accordance with Australian standards equivalent to International Financial Reporting Standards (AIFRS)                                                                          
² Subject to closing arrangements and approvals

For further information, please contact:

Karen Smith
Corporate Communications Manager
Macquarie Bank
Tel: (44) (0) 20 7065 2420