Macquarie profit ‘substantially’ down; commodities head resigns

MACQUARIE Group’s revenue fell attributable to lowered exercise in its commodities and international markets enterprise, whereas the veteran head of the division will step down later this month.

Earnings for the 9 months ended Dec 31 have been “substantially down on the previous year”, due partly to the exceptionally sturdy leads to the prior interval, the Sydney-based agency mentioned on Tuesday (Feb 13). Its annuity-style enterprise noticed decrease asset realisations in inexperienced investments and margin compression together with runoff within the automobile mortgage portfolio.

“Underlying client franchises were resilient in ongoing uncertain conditions with continued customer growth, fundraising and new business origination a feature across all of our businesses,” chief govt officer Shemara Wikramanayake mentioned.

Nicholas O’Kane, a 28-year veteran of the agency, will step down as head of commodities and international markets and from Macquarie’s govt committee, efficient Feb 27, to “pursue opportunities outside Macquarie”. Simon Wright, at present international head of CGM’s monetary markets division, turns into group head of CGM and can be part of the manager committee from Apr 1.

With Macquarie shares up round 20 per cent since early November, expectations have been using excessive that the variety of the agency’s companies would cushion any weak spots for particular person models. Wikramanayake is predicted to handle analysts and the media on a name at present, having final yr flagged that revenue from inexperienced vitality divestments inside Macquarie Asset Management would seemingly be skewed to the second half of the yr.

The financial institution on Tuesday mentioned web different working earnings for the second half of 2024 is predicted to be considerably down on final yr. BLOOMBERG

Source: www.businesstimes.com.sg”