Lopsided Macquarie persists with model muddle

The dichotomy that is the post GFC characteristic of Macquarie Group's business model provided its most strident display yet in its profit for the September 2014 half year, released on Friday.

The group's three annuity-style businesses - Macquarie Funds Group, Corporate and Asset Finance and Banking and Financial Services - produced an average return on equity over the half of 24 per cent.

These are glory day returns reminiscent of its pre-GFC era.

But the group's capital markets facing businesses - Macquarie Securities, Macquarie Capital and Fixed Income, Currencies and Commodities - produced a return on equity of only seven per cent, less than half its stated eight-year average.

This is a step up from next to no return in the year to March 2013, so things are improving across all businesses.

But the low return businesses have been low return now for years, even if the group ROE is now a more respectable 12 to 13 per cent.

The many thousands of free spirits who make up the capital market faced by Macquarie may be motivated to ask: Is it they who are the problem?

Or is it Macquarie's wayward board and management?