Profit downgrade for Macquarie

In an indicator of the dour outlook for international financial markets, on Friday Macquarie Group revised its outlook for its current financial year (to March 2011).

The group said it now expected three key divisions to produce earnings below those reported in 2010. The three are Macquarie Securities, Macquarie Capital and Fixed Income, and Currencies and Commodities.

At the end of April, and presenting the full year results, Macquarie said it "expected improved operating results for all our businesses in 2011".

Earnings in the June 2010 quarter across all businesses were "slightly ahead of a subdued June 2009 quarter" the bank said in a statement published ahead of its annual meeting in Sydney on Friday.

The three divisions singled out as likely to miss earlier earnings targets for 2011 all reported a lower first quarter profit in 2010.

The affected divisions earned more than 80 per cent of Macquarie's net profit in 2010.