Macquarie shares sink 3.8% on profit note
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More news: Shares in global financial services company Macquarie have sunk 3.79% after the group foreshadowed slower first quarter profits in its annuity and market facing businesses.
Macquarie Group flags Q1 profit slowdown
The news: Diversified financial giant Macquarie Group has warned that first-quarter net profit contribution across its annuity and market-facing businesses is down substantially amid weaker trading conditions.
The numbers: Annuity-style businesses Macquarie Asset Management (MAM) and Banking and Financial Services (BFS) contributed 23% and 12% of net profit respectively in the year ago period. Markets-facing businesses Commodities and Global Markets (CGM) and Macquarie Capital (MacCap) had delivered 57% and 8% respectively in the year ago period.
The context: The group did not elaborate on the extent of the profit decline in the current quarter, but said in a presentation that operating income at MAM took a hit from lower investment-related income from green energy investments, offsetting loan growth and improved margins in BFS. The commodities business underperformed largely due to reduced trading activity in gas & power segments, while MacCap saw lower investment-related income with fewer material asset realisations.
The source: ASX announcement
