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Profits slide at Australia's Macquarie Bank

Feb 5, 2009, 5:04 GMT

Sydney - Australia's Macquarie Group Ltd warned Thursday that full-year profit would halve to 900 million Australian dollars (585 million US dollars) from 1.8 billion Australian dollars in the past fiscal year. The homegrown investment bank's first profit fall in 17 years mostly reflected asset write-downs of 1.1 billion Australian dollars in the first half of the fiscal year, which ends March 31, and an expected 900 million Australian dollars in the second half. Operating income rose 15 per cent to 8.2 billion Australian dollars last year but was expected to dip by the same margin in the current fiscal year. Macquarie managing director Nicholas Moore said the bank's regulatory capital position remained strong with a surplus of 2.9 billion Australian dollars above minimum capital requirements set by regulators. 'The fundamental business is sound,' he said. '... Despite a scarcity of capital in the world, we continue to support our clients' capital needs and provide opportunities and products which are of value to them.' He disclosed that 1,047 staff members were laid off in the four months to January and that the workforce now stood at 12,851. Macquarie shares rose 3 per cent after the analyst briefing.

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Profits slide at Australia's Macquarie Bank

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