Business strategies  Prospects for future financial years  Banking and Financial Services  provides a diverse range  of personal banking, wealth management and business  banking products and services to retail clients, advisers,  brokers and business clients.  Banking and Financial Services delivered a net profit  contribution of $A260 million, up seven per cent on the prior  year. Banking and Financial Services’ Australian mortgage  portfolio increased by 47 per cent to $A17.0 billion, which  represents one per cent of the Australian mortgage market.  Its highly-ranked Australian wrap platform increased its funds  under administration by 50 per cent to $A37.7 billion from  $A25.1 billion. This was driven by 20 per cent organic  growth and market movements as well as the migration of  Perpetual’s private wealth administration platform in April  2013. Banking and Financial Services continued to hold a  strong position in wealth management and full-service retail  stockbroking in Australia and increased its retail deposits by  seven per cent to $A33.3 billion. Initiatives during the year  included the acquisition of a 25 per cent stake in mortgage  aggregator Connective; the establishment of Macquarie  Pacific Funding; and the sales of Macquarie Private Wealth  Canada and Banking and Financial Services’ 19.9 per cent  interest in OzForex via an initial public offering (IPO).  Macquarie Securities  is a global institutional securities  house with strong Asia-Pacific foundations.  Macquarie Securities delivered a net profit contribution of  $A107 million, up from a net loss of $A50 million in the prior  year. Macquarie Securities experienced increased market  volumes and equity capital markets (ECM) activity during the  year, up from subdued levels in the prior year, and benefited  from a lower level of losses from the wind down of legacy  businesses. Macquarie was ranked No. 2 for Australian ECM  transactions for calendar year 2013, completing more IPOs  than any other financial institution. Macquarie Securities  maintained its leading position for Australian equities among  institutional investors globally, maintaining or improving its  market share in key regions. Subdued volatility in derivatives  markets resulted in low levels of client demand. Macquarie  Securities continued to build on its expertise as one of the  largest derivative warrant issuers in the Asia-Pacific region,  holding No. 1 market share for listed warrants in Singapore,  No. 3 in Thailand and No. 6 in Hong Kong. Macquarie Capital  offers expertise across a range of  advisory and capital raising services.  Macquarie Capital delivered a net profit contribution of  $A280 million, up 87 per cent on the prior year. It advised on  450 transactions worth $A89 billion and for calendar year  2013 was ranked No.1 in Australia for announced and  completed mergers and acquisitions (M&A) transactions and  No.1 in South East Asia for announced M&A transactions.  During the year, Macquarie Capital advised a consortium on  the Queensland Government’s 32-year Public Private  Partnership (PPP) concession to build 75 new trains and  provide maintenance services; Asian Pay Television Trust’s $US1.1 billion IPO on the Singapore Exchange; WMS  Industries’ $US1.5 billion sale to Scientific Games and SHFL  Entertainment’s $US1.3 billion sale to Bally Technologies,  the two largest ever transactions in the US gaming  equipment sector; and the £600 million Mersey Gateway  PPP project in the United Kingdom. Fixed Income, Currencies and Commodities  provides a  variety of trading, risk management, sales, structuring,  financing and market analysis and strategy services. Fixed Income, Currencies and Commodities delivered a net  profit contribution of $A726 million, up 29 per cent on the  prior year. The improved result reflected a 58 per cent  increase in income from commodities related activities,  driven by stronger client hedging and trading opportunities  from increased volatility in energy markets, coupled with  falling precious metals prices and growth in physical metals  financing activities. Continued subdued mining equity  markets and generally lower metals and bulk commodities  prices impacted the timing of asset realisations, new project  financings, and resulted in further equity impairments in the  Metals and Energy Capital business, albeit an improvement  on the prior year. The credit environment was mixed with US  credit market volatility improving during the fourth fiscal  quarter. Foreign exchange and futures markets experienced  improved volatility and volumes compared to the prior year. Macquarie's core business involves leveraging the deep  expertise and insight of our people to deliver value to clients  in selected areas of financial services.  The business strategy is to focus on the medium term and is  built on: providing services to clients; aligning the interests of  shareholders, investors and staff; utilising a conservative  approach to risk management; continuing to focus on  growth and evolution; diversifying by business and  geography; and adapting to change. This approach provides  flexibility to enter into new business sectors and regions as  opportunities emerge and to expand existing businesses in  selected areas of expertise.  Macquarie seeks to encourage growth and diversity by  allowing strategy to be driven in the individual businesses at  the operating level. However, equity, credit, market, liquidity,  compliance and operational risks are centrally managed by  the Risk Management Group, whose responsibility is to  implement appropriate assessment and management  policies in respect of these risks throughout the Group.  Macquarie's business has evolved and changed to adapt to  market conditions. Macquarie examines investment  opportunities and has undertaken a number of strategic  acquisitions in response to changing market conditions and  opportunities. Macquarie will continue to assess strategic  acquisition and merger opportunities and other corporate  transactions as they arise, along with exploring opportunities  for further organic growth and diversification in its existing  businesses in the medium term.  While the impact of future market conditions makes  forecasting difficult, it is currently expected that the  combined net profit contribution from operating groups for  the financial year ending 31 March 2015 will be up on the  financial year ended 31 March 2014, broadly offsetting the  gain relating to the SYD distribution realised in the financial  year ended 31 March 2014. 43 