Macquarie earnings outlook softens
Macquarie Group is on track to produce slightly lower earnings in the current financial year, the company reported yesterday. It also announced a reshuffle of its business structure, involving several businesses units moving out of the Corporate and Asset finance division.In a briefing presented at its annual general meeting, Macquarie chief executive Shemara Wikramanayake said June quarter performance of the Corporate and Asset Finance division was down compared with the previous corresponding period, due to reduced loan volumes and principal finance realisations.Macquarie Asset Management was down mainly due to the timing of performance fees and higher operating expenses following recent acquisitions.Banking and Financial Services was broadly in line with the previous corresponding period.Macquarie Capital investment-related income was down.Commodities and Global Markets was up, thanks to strong performance of the commodities business.Wikramanayake announced some changes to the corporate structure, which will take effect in September.CAF Principal Financial (excluding Transportation Finance) will move into Macquarie Capital to bring together all principal investing activity.CAF Transportation Finance will move into Macquarie Asset Management, reflecting its development as a fiduciary business.And CAF Asset Finance will move into Commodities and Global Markets, reflecting a focus on "innovative finance solutions for corporates".CAF co-head Garry Farrell will leave the bank in September.