Macquarie Group 25% Profit Decline

Australia's largest investment bank, Macquarie Group (ASX:MQG), has announced a profit warning that the first-half year profits will be down 25%. The statement released by the banking institution said that uncertain global market conditions are making short-term forecasting very difficult and significantly impacting activity levels in Macquarie Securities, Macquarie Capital and Fixed Income, Currencies and Commodities.

Stock market analysts have said that the full year target may be challenging as global investment markets remain subdued from the reduction and withdrawal of government stimulus in Europe and in the USA are renewing fears of a double dip recession and with China attempting to slow economy growth. The uncertain global economic outlook is keeping initial public offerings on the shelf and risk aversion reducing merger and acquisitions by the company has helped reduce much of Macquarie's mainstay earnings.