Macquarie Group says its first quarter profit was broadly in line with its returns from the same time last year - a disappointing year for the bank.
Managing director and chief executive Shemara Wikramanayake told the investment bank's annual general meeting on Thursday its performance in the June quarter was consistent with expectations, delivering earnings broadly in line with the same time last year.
In the 2023/24 financial year, which for Macquarie ended on March 31, the company's profit from annuity-style activities was down 27 per cent to $3 billion and its profit from market-facing activities was down 40 per cent to $3.7 billion.
Chairman Glenn Stevens told shareholders FY24 was a decline from the exceptional results of the past two years, as the volatility in energy markets and increased customer demand for services, giving way to much quieter conditions.
Macquarie earned a return on shareholders funds of 10.8 per cent, down from its five-year average of 15 per cent.
Increases in headcount have also occurred in recent years and management has heightened its focus on reducing costs, Mr Stevens said.
Macquarie is maintaining its cautious stance and a conservative approach to capital, funding and liquidity as it looks forward, he said.
Macquarie's new global headquarters at 1 Elizabeth Street in Sydney's new Metro Martin Place will open next week, uniting all of its Sydney employees under the same roof for the first time in two decades.
Mr Stevens said it was one of Macquarie's largest balance sheet infrastructure undertakings to date, an ambitious project in partnership with the NSW government.
Early Thursday afternoon, Macquarie Group shares were down 3.7 per cent to $200.96.
