(29 October 2010 – Australia) Macquarie Group has surprised the market by reporting better-than-expected half year earnings, after issuing multiple profit downgrade warnings.The investment bank reported a 16 percent decrease in net profit from A$479 million to A$403 million for the six months to 30 September.
The fall in profit marked the third half yearly profit decline out of four.
Despite the fall, the profit announcement is well above market expectations of A$360 million for the period.
The bank made a net profit of A$411 million before minority interest.
White Funds Management’s portfolio manager Angus Gluskie told Reuters that the fact that Macquarie have actually come through and haven’t downgraded is comforting.
It is better than I think general expectations were, Mr Gluskie said.
Mr Gluskie noted that, in this case, analysts were too pessimistic and that the stock should do well today as a result of the announcement.