Ex-RBA boss Glenn Stevens joins Millionaires Factory

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Former Reserve Bank of governor Glenn Stevens is joining the boards of Macquarie Group and Macquarie Bank as the Millionaires Factory posted yet another record first-half profit.
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Mr Stevens, who was governor of the RBA between 2006 and 2016, will become an independent director on both boards from November 1, Macquarie said in a statement to the ASX.

He has been on a number of n and international boards and committees, including the Financial Stability Board, and on a range of G20 committees. As RBA boss, he led ‘s economy through the GFC, the mining boom and a record low interest rate environment.

Macquarie Group chairman Peter Warne said Mr Stevens “brings a unique perspective, not only regarding the drivers of ‘s economy, but also of the international economies from which Macquarie derives the majority of its income.

“Glenn is an internationally respected central banker who has contributed significantly to ‘s economic success,” Mr Warne said.

A spokeswoman for the bank said Mr Stevens wasn’t available for comment.

Managing director Nicholas Moore emphasised Mr Stevens would be in “very much a governance role” as a non-executive director, not an employee of the bank.

“It’s clear that Glenn Stevens as the governor has had a very distinguished career here in , and would be an outstanding candidate for any board for any, frankly, international or n company,” Mr Moore told journalists.

The appointment comes after speculation that Mr Stevens turned down an appointment on the board of the Commonwealth Bank in the wake of the Austrac allegations against the bank of breaches of anti-money laundering rules.

Reporting its latest result on Friday morning, Macquarie beat expectations by posting a record first-half profit, boosted by performance fees.

The investment bank and fund manager’s net profit for the six months to September 30 was up 19 per cent at $1.2 billion, beating the average $1.14 billion forecast of analysts according to Thomson Reuters I/B/E/S. Net operating income rose 3.4 per cent to $5.4 billion as performance fees more than tripled to $537 million. But the profit contribution from its commodities and global markets arm fell 23 per cent during the period.

Macquarie said it now expects full-year earnings to exceed last year’s record profit of $2.2 billion.

Its shares have surged more than 10 per cent since it said last month it expected a solid first-half profit. This week they hit their highest level since the government slapped its levy on the country’s biggest banks in early May.

The company also announced a 45 per cent-franked interim dividend of $2.05 per share, up from $1.90 a year ago, and flagged an on-market share buyback of up to $1 billion.

with Reuters