Macquarie hints at tough times ahead

15 July 2008

Profits are likely drop further at Macquarie over the months to come, the Australian bank has indicated.

In a trading statement, the firm said that profits for the second half have increased by 1.4 per cent to A$733 million - which is down on previous forecasts, Reuters reports.

However, Macquarie also said that it had no concerns about exposure to the bad debts which have impacted on many other banks' balance sheets with the onset of the credit crunch, and has caused over $300 billion of assets to have been written off worldwide.

Nicholas Moore, incoming chief executive at the bank, commented: "It will be challenging to repeat last year's record performance, but this may be achievable.

"[It is] possible there will be opportunities for acquisitions in the current environment due to our strong capital position."

Shares in Macquarie have fallen by 5.3 per cent today as a result of the announcement.

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