Australia's Macquarie says Q1 profit lower, provides no 2021 guidance

[BENGALURU] Australia's Macquarie Group said on Thursday first-quarter profit contribution from its operating groups was lower than a year ago and it will not provide guidance for fiscal 2021 given the pandemic-induced uncertainty.

The financial conglomerate did not disclose a profit number for the quarter, but said lower investment income at its market-facing operations hurt performance.

Market conditions are likely to remain challenging due to the global fallout of Covid-19 and the uncertain economic recovery, the bank added.

The pandemic and subsequent restrictions cost Macquarie A$1.04 billion (S$1.03 billion) in credit and investment impairments, as global economic activity plummeted and investors repriced assets.

Foreign exchange movements also weighed on its asset management business, its biggest earnings contributor, in the first quarter.

It was not all bad, as clients rebalanced their portfolios to overcome the volatile market which Macquarie said supported its commodities and global markets division.

In May, the company reported its first fall in annual profit since 2012 and refrained from providing any guidance for fiscal 2021 due to uncertainty caused by the coronavirus pandemic.

REUTERS