Profits are likely drop further at Macquarie over the months to come, the Australian bank has indicated.
In a trading statement, the firm says that profits for the second half have increased by 1.4% to A$733 million – which is down on previous forecasts.
However, Macquarie also says that it has 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.
“It will be challenging to repeat last year’s record performance, but this may be achievable,” says Nicholas Moore, incoming chief executive at the bank. “[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% today as a result of the announcement.