Macquarie Bank forecasts record earnings

19 September 2006

Macquarie Bank has forecast record first-half net income of A$675 million ($509 million), marking an increase of 40 per cent on the previous year.

Deputy managing director Richard Sheppard said the bank expects net profit for the six months ending 30th September 2006 to be strongly up on the prior corresponding period.

However, the final result is still uncertain and will be dependent on market conditions and the extent of the successful completion of major transactions on, or before, 30th September, he added.

"Given those qualifying statements, however, we expect at least a 20 per cent increase in net profit on the prior corresponding period, excluding the realisation of the Bank's holding in the Macquarie Goodman Group (MGQ). Including the MGQ realisation, the net profit increase is expected to be at least 40 per cent," he said.

"While it is too early to provide further guidance on the net profit for the second half, we expect that, as previously indicated, the full year profit for the twelve months ending 31st March 2007 will be up on the prior year, subject to market conditions."

In the Macquarie's previous guidance provided to the Annual General Meeting in July, Mr Sheppard said the bank had advised that equity market sentiment had deteriorated globally and had the potential to negatively impact many of its businesses, if sustained.

However, market conditions have held up well during the period, he added.

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