Macquarie Bank has hit bumpy conditions amid what it describes as deepening global economic uncertainty resulting in substantially lower levels of client activity in many markets.
In an operational briefing released today, Macquarie Group chief executive Nicholas Moore said the company's three annuity-style businesses – Macquarie Funds, Banking and Financial Services and Corporate and Asset Finance, continued to perform in line with expectations.
He said their combined current financial year net profit contribution was expected to be up by approximately 20 per cent.
As well, he said the Fixed Income, Currencies and Commodities group had seen improved conditions in a number of markets.
However, on the down-side, Moore pointed to the group's two other markets-facing businesses – Macquarie Securities Group and Macquarie Capital – being severely impacted by macroeconomic conditions, with December quarter net profit contributions from both significantly down.
The Group said Macquarie Securities' second-half operating income was expected to be down 55 per cent, with Macquarie Capital's second-half operating income expected to be down 35 per cent.
Moore said Macquarie's result for the current financial year was expected to be lower than last year, and that on current market conditions was expected to be around 25 per cent lower.
