Macquarie Bank becoming confident of matching last year’s record full year profit

26 September 2005

Macquarie Bank Deputy Managing Director Richard Sheppard said today the Bank was becoming confident of matching last year’s record full year profit.

“Subject to a continuation of reasonable market conditions, we are becoming confident that we can at least match last year’s record result of $823 million, despite the fact that last year’s result included a one off gain from the formation of the Macquarie Goodman Group. There is possible upside to the full year result from specialist fund initiatives and asset realisations,” he said.

Speaking ahead of the Merrill Lynch 20^th Anniversary Australia Investment Conference in New York later this week and meetings with investors in the USA and Canada, Mr Sheppard said the first half profit result for the six months ended September 2005 was expected to be broadly in line with the previous year’s second half profit, excluding the contribution from the Macquarie Goodman profit realisation. The previous year’s second half profit excluding the Macquarie Goodman realisation was $448 million, and benefited from very large performance fees.

Mr Sheppard noted that market conditions in the first half, especially global equity markets, have overall continued to be good, and better than expected.

“The contribution to the profit for the six months ended September 2005 from the Equity Markets Group is anticipated to be more than double last year’s first half profit for that Group. All broking businesses are performing well and there have been strong contributions from performance fees. All Groups performed well during the half.” Mr Sheppard said.

Commenting on the medium term outlook, Mr Sheppard said Macquarie Bank was well placed due to good businesses, diversification, committed quality staff and effective prudential controls.

“The Bank expects continued good growth in revenue and earnings across most businesses over the medium term, subject to market conditions not deteriorating materially, and its international businesses are expected to experience continued good growth,” he said.

Erica Sibree
Investor Relations
Macquarie Bank Limited
Tel: (612) 8232 5008
Mobile: (614) 1302 6309

Matthew Russell
Public Relations
Macquarie Bank Limited
Tel: (612) 8232 4102
Mobile: (614) 1069 9532