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Profits struggle for Macquarie
Evening Standard 20 May 2008
Australia's biggest securities firm, Macquarie Group, has warned that it is having trouble increasing profits in the aftermath of the subprime crisis.
It made net profits of A$1.8billion (£879.1 million) for the year - equalling last year's record - but described the coming half as "challenging". Profits barely moved in the second half.
These are the last results under chief executive Allan Moss, who has been at the helm for 16 years. Nicholas Moore takes over next week.
Net profits rose 1.8% to A$743million in the six months to 31 March, the slowest growth in two years.
The company, a one-time suitor of the London Stock Exchange, is leader of a consortium that owns Thames Water and has a range of infrastructure investments, with Macquarie Airports holding stakes in Bristol and Birmingham airports.
It booked a A$293 million provision as volatility in global markets weighed on its property trusts but Moore said the bank had "no unusual trading exposures or concerns with credit quality".
