Australian bank Macquarie’s corporate and asset finance division saw operating profits up 20% year-on-year in the March-September period, totaling A$619m (£361m) before tax.
Stable income from leases, fees and other charges, together with a cut in expenses, helped offset a 5% fall in interest revenues to A$336m.
Net operating income from the segment was A$931m, down 32% year-on-year. The loan book shrank 3% to A$25.6bn.
The group cited improvements in the aviation, energy and technology portfolios, “offset by foreign exchange movements.”
Profits for the overall Macquarie group rose 14% to A$1.7bn.
Corporate and asset finance accounted for 17% of the group’s operating income and 36% of operating profits, slightly more than in H1 2016.
The company said: “Corporate and asset finance’s medium-term focus is to leverage its deep industry expertise to maximise growth potential in asset and loan portfolios. CAF is positioned for further asset acquisitions and realisations, subject to market conditions, with funding from asset securitisations expected throughout the cycle.
“Macquarie remains well positioned to deliver superior performance in the medium-term due to its deep expertise in major markets, strength in diversity and ability to adapt its portfolio mix to changing market conditions, the ongoing benefts of continued cost initiatives, a strong and conservative balance sheet and a proven risk management framework and culture.”