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Macquarie Group blames global economy for 52% drop in profits

Macquarie Group has blamed the global economy for its 52 per cent drop in post-tax profits for the year ending May 2009.

In a letter sent to shareholders today the Australian banking giant, parent of the Macquarie wrap in the UK, said profits for the past financial year were £425.5m, or $AUS871m, representing a 52 per cent decline on the previous year, when it posted a £881m profit.

It also recorded write-downs of £1.2bn.

The letter sent by chief executive officer Nicholas Moore and acting chairman Kevin McCann said the drop in profit and the total write-downs was a result of the “extremely challenging global operating environment”.

It says: “As you would be aware the past financial year was very challenging. It was a year in which all financial institutions around the world were tested not only by a highly disrupted operating environment, but also by the spread of this disruption to other sectors and the broader economy.”

But it adds: “We have entered Macquarie’s fortieth anniversary year enthusiastic about the new initiatives that we are pursuing across all our businesses.”

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