Macquarie’s investment bank bolsters fee income

Macquarie Capital, led by Robin Bishop, has seen its fees from advisory and underwriting rise almost a quarter in its 2014 financial year.

Robin Bishop, the head of Macquarie’s investment bank, must be a happier man this year compared to last.

Mr Bishop’s group, Macquarie Capital, has generated fees from advising on mergers and acquisitions, underwriting fees and other advisory fees of $667 million in the 12 months to March 31, 2014, according to an ASX statement. That is a 24 per cent increase from $540m a year earlier.

Fees generated by Macquarie’s investment bankers picked up from September last year, about the time Australia’s equity capital markets started booming. In the last quarter of 2013, about half of Australia’s 60 initial public offerings of the year were priced and trading on the ASX.

The pick up in Australian equity capital markets activity from September enabled Macquarie Capital to bolster its contribution to Macquarie Group’s bottom line.

In the six months to end March, Macquarie Capital’s net profit contribution to the group was $179m, a 77 per cent increase from $101m in the six months to September 30, 2013.

Macquarie’s M&A, advisory and underwriting fees in the six months to March 31 this year were $379m, up 32 per cent from $288m in the six months to September 30 last year.

Macquarie Capital’s contribution to Macquarie Group’s net profit jumped 87 per cent in the 12 months to March 31 this year. Macquarie Capital said it made a $280m net profit contribution to the company, up from $150m from 2013. 

Curiously, the number and value of transactions Macquarie Capital participated in the 12 months to March 31 this year was little changed from the previous year.

The company said it advised on 450 transactions valued at about $89 billion in its 2014 financial year. In its 2013 financial year, Macquarie Capital said it advised on 447 transactions valued at about $85bn.

(Brett Cole@businessspectator.com.au)

(Editing by miranda.maxwell@businessspectator.com.au)

Related Articles