Macquarie Group Ltd (ASX:MQG) is expecting to report a weaker first half profit, but has surprised analysts by maintaining its full year guidance on expectations of a stronger second half.
Australia's largest investment bank is expecting to improve on last year’s full year result of $989 million, however has admitted that weaker market conditions pulled down its first quarter performance.
Chairman Kevin McCann has called the current market conditions “exceptionally difficult”, and conceded that the group’s returns have dropped since the global financial crisis.
Citigroup has forecast Macquarie’s full year earnings to reach $1.07 billion, while Thomson Reuters expects Macquarie to post a net profit of $1.23 billion in the 2012 financial year.
Shares in Macquarie Group have sunk in morning trade, falling 3.31 per cent to $28.36.
In the 2011 financial year Macquarie Group recorded a net profit of $989 million.
