The shares of Australian investment bank Macquarie Group (OTC: MQBKY) plummeted almost 4% in early trade on Thursday as it reported a reduced quarterly profit due to lower contributions from both its asset management sector and banking and financial services. In its quarterly update, Macquarie omitted the profit number but stated that weak green energy …
The shares of Australian investment bank Macquarie Group (OTC: MQBKY) plummeted almost 4% in early trade on Thursday as it reported a reduced quarterly profit due to lower contributions from both its asset management sector and banking and financial services. In its quarterly update, Macquarie omitted the profit number but stated that weak green energy investment-related income at its asset management arm had a negative impact on profitability. According to analysts at Citi, the management is anticipating continued decline through the 2024 fiscal year given the first quarter’s weaker performance. Reduced trading activity across the gas and power sectors, according to Macquarie Group, was the cause of the disappointing performance of its commodities and global markets (CGM) segment, which is its top revenue generator. However, revenue from commodities is anticipated to be in line with fiscal 2022 since volatility in gas and energy markets may present opportunities. “We think this reflects the collapse in YoY volatility in petrol prices, consistent with declining capital consumption in CGM,” Citi analysts stated. Despite a difficult 2023, Macquarie Group warned that trading activity in Macquarie Capital was expected to be up.
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