The insurance broking market has been highlighted as a key growth area for Macquarie Banking and Financial Services.

The company posted $1.4 billion in perating income for the year to March 31, down 6% on the prior year, for a profit of $265 million.

But growth in its Macquarie Relationship Banking business, which offers products to small to medium enterprises such as insurance brokers, real estate and strata companies, was identified as a bright spot, with the company boosting its lending and deposit book to $8.8 billion and achieving a record number of new clients.

In contrast, insurance business Macquarie Life faced “an increasingly competitive market in 2011”, the company says.

But Macquarie maintains the life business remains “on track” with inforce risk insurance premium income increasing 33%.