© Reuters. The logo of Australia’s biggest investment bank Macquarie Group Ltd adorns a desk in the reception area of their Sydney office headquarters in Australia, October 28, 2016. REUTERS/David Gray/File Photo

(Reuters) -Australian financial conglomerate Macquarie Group (OTC:) on Tuesday said its fiscal 2024 year-to-date net profit after tax fell “substantially” due to weakness in its commodities and other market-facing businesses.

Net profit contribution from commodities and global markets (CGM) segment for the period were lower as the business was up against tough year-earlier comparisons during which it saw “exceptional” strength in commodities, the company said.

It also said Nicholas O’Kane had decided to step down as head of CGM and from Macquarie’s executive committee, effective Feb. 27.

The financial conglomerate, which does not disclose profit figures in quarterly updates, also forecast a substantial fall in its second half net other operating income for Macquarie Asset Management (MAM) and lower transaction activity in fiscal 2024 for Macquarie Capital.

“We continue to maintain a cautious stance, with a conservative approach to capital, funding and liquidity that positions us well to respond to the current environment,” the company said.

MAM oversaw A$882.5 billion ($576.10 billion) worth of assets as at December-end, a 1% drop on September-end.

The company, however, said it remains well-positioned to deliver superior performance in the medium-term.

Simon Wright, currently global head of CGM’s financial markets division, will become group head of the business and join the executive committee from April 1.

($1 = 1.5319 Australian dollars)

Source: Investor

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