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Macquarie Group has hinted at market caution following the publication of its June 2010 quarter results. Figures released from the group show earnings in the June 2010 quarter were only slightly ahead of the same period as last year, with a lowering in confidence levels across markets and the disruption stemming from Europe and the pace of recovery in the US economy cited as the main contributors.
Weak global conditions, including debt capital markets, equity capital markets and mergers and acquisitions, saw Macquarie Group post its lowest June quarter global investment banking fee pool since 2004, with Macquarie Securities, Macquarie Capital and Fixed Income, Currencies and Commodities all making lower contributions this quarter.
In contrast, Macquarie’s Corporate and Asset Finance, Macquarie Funds Group and Banking and Financial Services made higher contributions to the June 2010 quarter as a result of the successful implementation of initiatives undertaken over the last 12 to 18 months.
Macquarie chief executive Nicholas Moore said the figures show the investment firm would not hit its financial targets. “These market conditions are significantly impacting activity levels. Unless the market conditions experienced in the June 2010 quarter improve, we do not expect these groups to meet FY10 results in FY11.”
However, he added that the full year performances of Corporate and Asset Finance, Macquarie Funds and Banking and Financial Services are expected to exceed FY10.
