Macquarie Group has reversed the trend of big bank profits this week, reporting a 16 per cent decline in net profit after tax to $403 million.
The banking group’s chairman, Nicholas Moore, said that the decline had been foreshadowed in the company’s market update in September and was attributable to subdued market conditions affecting activity across a number of businesses, particularly fixed income, currencies and commodities.
However, he said more favourable market conditions and benefits from recent initiatives had resulted in improved performances for Macquarie Funds Group, Corporate and Asset Finance and the Banking and Financial Services Group.
Moore said that continuing uncertain market conditions made short-term forecasting difficult, and that while market conditions in September and October had shown some signs of improvement, activity continued to track below normal levels.
He said on that basis, the company expected its financial year 2011 result to be broadly in line with the previous financial year.
