Macquarie Bank’s profit fell 24% for the full year to March 31.
The Sydney-based merchant bank, reported a $730 million net profit for the year.
The bank reported a net profit of $425 million for the second half of the year – up 39% on the first half – due to stronger performances by fixed income, currencies and commodities and the strength of its annuity style businesses.
Macquarie Group chief executive Nicholas Moore said the year to March 31 was characterised by substantially lower levels of client activity.
Get business news first
Sign up to SmartCompany’s daily newsletter
“Difficult market conditions impacted the performance of Macquarie’s capital markets-facing businesses. Macquarie Securities group experienced a fall in cash and derivatives revenues and exited a number of underperforming businesses globally, recording a loss for the year,” Moore said.
Macquarie said it had cut costs by $420 million, shedding 1354 jobs in the past year.
The bank confirmed plans to conduct a $500 million share buyback, to purchase up to 10% of its ordinary shares.
The bank will pay a final unfranked dividend of $0.75 per share, and a full-year unfranked dividend of $1.40 per share, down from $1.86 in the previous year.