Macquarie Group shares have fallen more than three per cent after the investment bank warned net profit for the current year could fall about 25 per cent amid difficult market conditions.
In a presentation to investors in Sydney on Tuesday, Macquarie chief executive Nicholas Moore said net profit for fiscal 2012 was expected to be down 25 per cent from the $956 million achieved in the prior year, based on current market conditions.
Mr Moore said the global economic uncertainty had deepened and resulted in "substantially lower levels of client activity in many markets".
Should the result print in line with expectations, net profit would come in at about $717 million.
The updated guidance and bleaker outlook from what Macquarie said in October last year was below what many analysts had been expecting.
At 1045 AEDT, Macquarie shares were down 3.68 per cent, or 96 cents, at $25.08. It was the worst-performing stock on the S&P/ASX20.
Mr Moore said the investment bank's Macquarie Capital and Macquarie Securities businesses were experiencing difficult trading conditions in many markets and had been "severely impacted by macro-economic conditions".
In a slide presentation, the investment bank said its Macquarie Securities unit would make a negative contribution to net profit in fiscal 2012, which ends on March 31.
Meanwhile, Macquarie Capital's net profit contribution in fiscal 2012 would be "significantly lower" than the prior year.
Macquarie said it expected to have $3.7 billion in surplus capital above regulatory requirements by the end of fiscal 2012.
The bank said it planned to buy back up to 10 per cent of its shares, due to commence in the first half of fiscal 2013. The buyback was subject to regulatory approval.
Mr Moore said Macquarie's annuity-style businesses - Macquarie Funds, Banking and Financial Services and Corporate and Asset Finance - continued to perform in line with expectations.
Also, the Fixed Income, Currencies and Commodities Group experienced improved conditions in a number of markets and delivered a December quarter net profit contribution higher than the prior corresponding period, he said.
In terms of the second half, Macquarie said net profit for the six months to March 31, 2012 was forecast to be down 25 per cent on the prior corresponding period.
Second half net profit was tipped to come in 35 per cent higher than the first half, the bank said.
Macquarie is due to release its full year results on April 27.
