Macquarie, the Australian investment bank, signalled its intention to ramp up its deal-making activities in Europe today as it announced plans to apply for a banking licence in Britain.

The world’s biggest owner of infrastructure assets, which led the £4.8 billion takeover of Thames Water last October, also said that it had considered shifting its headquarters abroad.

Allan Moss, chief executive, said that the bank would submit an application to the Financial Services Authority in July to establish a banking business, incorporated in the UK, to support its rapid growth in Britain.

"This will also provide a European passport for banking businesses," Mr Moss said.

His comments came as Macquarie reported net profits up 60 per cent to A$1.46 billion for the year ended March 31. Operating income was A$7.2 billion (£3.03 billion), a rise of 49 per cent from the year before.

Income from international operations surged 70 per cent and now accounts for 55 per cent of total operating income, prompting Macquarie to consider moving offshore. But the board resolved to remain based in Australia.

“The reasoning is that on one hand most of our business is outside Australia but Australia is still a very big market. It is also in an excellent time zone for Asia and we see Asia as the main driver of [global] economic growth,” Mr Moss said.

Australia’s biggest investment bank has reported a record profit for the 15th year in succession.

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