Macquarie boasts good profits

13 November 2007

Australia's top investment bank, Macquarie Group, has posted a 45 per cent jump in first-half profits.

Despite beating its forecast after good trading in Asian equities, shares in the bank dropped by four per cent on a dimmer outlook.

Macquarie warned investors that volatility in the markets was a possibility, promising that its second-half results would match last year's.

Investors were left disappointed as they expected an upgrade earnings forecast.

"Market conditions are generally very volatile and frankly somewhat nervous," Allan Moss, chief executive, told Reuters.

But despite investor disappointment the profits are quite different when compared to the investment banks in America.

Many of the US investment banks have written off billions of dollars due to the problems in the sub-prime market but Macquarie had no exposure to these markets, helping it to achieve high profits.

In the six months to September profit rose to $938 million, higher than the rise of 40 per cent predicted by analysts.

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