Macquarie Group chief executive Nicholas Moore’s pay packet swelled to $18.
7 million in the past year but shareholders are unlikely to complain after a record full-year profit of $2.217 billion.
The financial group’s shares soared to a 10-year high on Friday after an above-expectation profit that Macquarie said it anticipates will be repeated in 2018.
Net profit for the 12 months to March 31 rose 7.5 per cent, earning Mr Moore a $555,000 increase on his remuneration over the previous financial year.
Share-based payments accounted for more than two thirds of his total remuneration.
The company’s strong performance lifted its shares as much as $4.10, or 4.4 per cent, to $96.02 – close to their all-time high of $97 set in May 2007 prior to the global financial crisis.
Net profit from Macquarie’s banking and financial services unit soared 47 per cent to $513 million, with Australian lending and deposits both growing.
The unit’s deposits rose 10 per cent to $44.5 billion and Macquarie’s Australian mortgage portfolio rose one per cent to $28.7 billion – which is about two per cent of the domestic home loan market.
The banking and financial services result also benefited from the sale of Macquarie Life’s risk insurance business, although this was partially offset by a loss from the disposal of its US mortgages portfolio.
The profit contribution from commodities and global markets also rose, by 15 per cent to $971 million, reflecting an increase in investment-related income generated from the sale of investments and a reduction in provisions for impairments.
Overall, the financial group’s second-half profit of $1.167 billion was 11 per cent higher than that of the first half, and 18 per cent up on the prior corresponding period.
“The group remains well positioned, with a strong and diverse global platform and deep expertise across a range of products and asset classes,” Mr Moore said.
“This is built on the foundation of a strong balance sheet, surplus capital, a robust liquidity and funding position and a conservative approach to risk management, which is embedded across all operating groups.”
The group raised its final dividend by 40 cents to $2.80 per share, 45 per cent franked.
At 1432 AEST, Macquarie shares were up $3.13, or 3.4 per cent, at $95.05.
MACQUARIE’S FY FIGURES
* Net profit up 7.5pct to $2.217b
* Revenue up 2.0pct to $10.364b
* Final dividend up 40 cents to $2.80 per share, 45 per cent franked