Macquarie Bank points to lower result
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.
Recommended for you
ASIC has released the results of its first adviser exam to be held in 2025, with 241 candidates attempting the test.
Quarterly Wealth Data analysis has uncovered positive improvements in financial adviser numbers compared with losses in the prior corresponding period.
Holding portfolios that are too complex or personalised can be a detractor for acquirers of financial advice firms as they require too much effort to maintain post-acquisition.
As the financial advice profession continues to wait on further DBFO legislation, industry commentators have encouraged advisers to act now in driving practice efficiency.
