Macquarie Group Profit Warning

Australian investment banker, Macquarie Group (ASX:MQG) has delivered its third profit warning in three months. At an investor presentation in London, yesterday, it was revealed that volatile financial market conditions is likely to be 25 percent below market expectations. Macquarie's first half profit for the six months to September 30 would drop to $359 million (from $479 million the previous year).

On release of the profit warning, Macquarie shares were sold down. Macquarie Group shares have lost up to 27 percent in the year, trading at its lowest price levels in 15 months. The company has also disclosed that its surplus capital has been reduced from $4 billion to $3.1 billion from spending in its business to "support growth". Macquarie Group is internationally known for pioneering the listed infrastructure model.