Macquarie cuts 1H forecast

Macquarie cuts 1H forecast

Macquarie Group (ASX:MQG) has warned that it now expects its 1H profit to be down year-on-year, due to market weakness.

The group advised that its capital markets facing businesses experienced difficult trading conditions during August, and that this factor coupled with a previously foreshadowed higher tax rate is likely to take a toll on results for the half.

The company is also now forecasting broadly flat FY12 profit for its Macquarie Securities and Macquarie Capital operating groups, compared to its previous forecast of an increase in profit.

Profit at the Fixed Income, Currency and Commodities (FICC) division is now expected to be down for the year, whereas the previous forecast was for it to remain flat.

But Macquarie added that barring a further decline in market conditions, it still expects an improved FY12 result overall. The company also advised it has an optimistic medium-term outlook.

Macquarie Group reported a 9% decrease in FY11 profit to $956 million, but a 15% higher operating income of 7.6 billion. Profit and - to a lesser extent - income for the year were weighted towards the second half.

MQG shares grew 1.6% on Wednesday to $23.530.

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Tags Macquarie GroupMacquarie CapitalFinancial marketsGuidanceASX:MQG

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