Macquarie Group weighed down by markets
Macquarie Group’s latest short-term outlook anticipates a 25 per cent drop in first half profit for the current financial year to September 30, 2010, compared to the prior corresponding period.
This is in light of continuing weak markets, according to Macquarie’s deputy managing director Richard Sheppard. Sheppard said global market conditions were significantly impacting activity levels in Macquarie Securities, Macquarie Capital and Fixed Income, Currencies and Commodities business arms, which made short-term forecasting “very difficult”.
Sheppard did note Macquarie’s Banking and Financial Services, Macquarie Funds and Corporate Asset Finance businesses were continuing to expand.
Sheppard said Macquarie anticipated that profit in the financial year to March 31, 2011, would be broadly in line with performance in the previous financial year “should market activity return to more normal levels during the second half of the financial year”.
Macquarie stated that it had increased its cash and liquid assets as a result of a cash management trust transition on July 31 this year, which added $9 billion to Macquarie’s cash balances. The group added that as at June 30, 2010, its surplus capital was $3.1 billion, down from $4 billion as at March 31, 2010, which it stated reflected its support of business growth.
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