Macquarie Group profit heads south
Macquarie Group has confirmed the extent to which the global financial crisis has hit its bottom line, using an operational briefing today to forecast a financial year 2009 profit of just $0.9 billion with around $2 billion in write-downs and impairment charges.
The group update, details of which were released on the Australian Securities Exchange today, also revealed that operating income before impairment was down by around 15 per cent.
Looking over the horizon, the company said the outlook remained subject to significant swing factors including market conditions, asset realisations, completion rate of transactions and asset prices.
Dealing with individual sections within the group, Macquarie said that within its Banking and Financial Service Group, retail deposits were up 27 per cent on the previous quarter but that full service broking volumes were down 13 per cent on the prior half and that Macquarie Wrap was down 18 per cent from June 30 to December 31 due to the fall in market values exceeding inflows.
The Macquarie Funds Group reported that funds under management were down around 10 per cent.
It said that around half of the revenue decrease was due to outflows and lower market values, with the other half a result of lower performance fees and impact on seed investments.
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Mike Taylor
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