Sharechat Logo

Macquarie posts 43% drop in profit as asset values fall

Tuesday 18th November 2008

Text too small?

Macquarie Group, Australia's biggest securities firm, reported a 43% decline in first-half profit after taking write-downs and charges amounting to A$1.14 billion to account for slumping asset values.

Profit fell to A$604 million in the six months ended Sept. 30, from A$1.06 billion a year earlier, Macquarie said in a statement today. Chief executive Nicholas Moore said earnings will probably stay at that level in the second half of the year as the group took further writedowns of its funds.

The earnings outlook puts Macquarie on track fro its first annual decline in profit since 1992. Moore said the underlying performance of the company is more robust than the headline results suggest and its balance sheet is strong.

"While the extreme market conditions have led to a number of writedowns and one-off costs in the latest half year, the underlying performance of the Macquarie business has been solid," he said.

Shares of Macquarie surged 11% to A$22.96, trimming their slide in the past 12 months to 72%. The firm didn't have the same exposure to the US sub-prime market collapse as its major US and European rivals though it has been hurt by slumping equity markets.

By Jonathan Underhill



  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

EROAD Limited (NZX: ERD) launches Clarity Solo Dashcam
22nd October 2021 Morning Report
Pictor ready to roll out game-changing COVID antibody test in New Zealand
Scott Technology Limited (NZX: SCT) Announces FY21 Results
21st October 2021 Morning Report
Greenfern Industries Limited (NZX: GFI) L&Q Notice
TruScreen Group Limited (NZX: TRU) Clinical Trial Results Highlight Efficacy of TRU Technology
20th October 2021 Morning Report
Freightways Limited (NZX: FRE) Acquisition of ProducePronto
19th October 2021 Morning Report