Macquarie Group has boosted its final and full year dividends after increasing full year profit 21%.
Net profit rose to $1.05 billion for the 12 months to March 31 from $871 million in 2008-09.
That was after second half profit jumped to $571 million from the $267 million made in the same period of the 2009 financial year.
First half earnings (to September 30 2009) were 479,000, down from the $604 million earned in the same periods of 2008.
The investment bank revealed Friday morning that it will pay a full year dividend of $1.86 after boosting the final to $1.00 a share. (40c a share final in 2009).
The interim was 86c.
All 2010 dividends are unfranked.
Macquarie Group Managing Director and Chief Executive Officer, Nicholas Moore, said in the statement that the "result reflects improved market conditions and the diversification and global reach of our businesses. International income accounted for 52% of total income.
“Each of our operating businesses delivered improved results on the prior year. Operating conditions continued to improve during the year, leading to greater activity across many of our businesses.
“Our FY10 result reflects improved market conditions and the diversification and global reach of our businesses. International income accounted for 52% of total income.
“Each of our operating businesses delivered improved results on the prior year. Operating conditions continued to improve during the year, leading to greater activity across many of our businesses.
“The capital base is grown ahead of business requirements. Group capital at 31 March 2010 was $A11.8 billion which was $A4.0 billion in excess of the Group’s minimum regulatory capital requirement.
"Macquarie Bank’s tier 1 capital ratio was 11.5%, up from 11.4% at 31 March 2009, " directors said in the statement.
Mr Moore said that the outlook for the new financial year was for market conditions continue to improve "but continuing uncertainty makes forecasting difficult."
“Subject to market conditions, we currently expect improved operating results for all of our businesses in FY11 compared to FY10.”
"In relation to FY11 trading, it is likely that the income statement will be characterised by fewer one-off items (e.g. assets sales, writedowns and provisions) as seen in the second half of FY10, the compensation ratio being consistent with historical levels, and continued higher cost of funding reflecting market conditions and high liquidity levels including the recent CMT/CMA initiative," Mr Moore said.
