(8 September 2011 – Australia) Australian investment bank Macquarie indicated that its first-half profit is likely to be lower after volatile financial market conditions affected some branches.The bank said its first-half profit, for the six months ending September, was expected to be lower than the A$403 million in the same period last year.
In an update to the market, Macquarie said its capital markets divisions suffered during August, which saw the most market volatility since the start of the global financial crisis nearly three years ago.
The businesses most affected were its investment banking arms, Macquarie Capital and Macquarie Securities, and its Fixed Income, Commodities and Currencies operation.
‘Given these difficult trading conditions and the previously foreshadowed factors of a higher tax rate…it is expected the first half of 2012 result will be lower than the first half of 2011,’ the bank said in its statement.
‘Macquarie continues to expect an improved result for the full-year 2012 (over 2011) if market conditions for the remainder of the year are not worse than the prior corresponding period.
‘However, it should be noted that market conditions are particularly uncertain at the current time.’