The logo of Australian investment bank Macquarie Group Ltd adorns a desk in the reception area of their Sydney office headquarters in Australia, October 28, 2016. REUTERS/David Gray/File PhotoQ1 earnings may have come in lower than A$1 bln - Cition Thursday flagged a "substantial" fall in April-June profit, as weaker trading conditions hurt its crucial commodities business.
"Weaker trading conditions saw Macquarie's Operating Groups deliver 1Q24 net profit contribution that was substantially down on the first quarter" a year prior, said CEO Shemara Wikramanayake. Macquarie's other businesses also took a hit in the quarter. Its asset management arm struggled due to lower income from green energy investments, while Macquarie Capital, which runs capital-raising exercises for other companies, was also weaker.
"We believe it is too early to be definitive on how commodity volatility will evolve in the coming Northern Hemisphere winter, but it is clear that higher cash rates globally is slowing economic activity."