Macquarie Group (MQG.AU) shares plummeted 5% in Thursday's trading session following a series of negative announcements that have rattled investor confidence. The Australian investment banking giant reported a decline in its first-quarter net profit, coupled with news of a significant leadership change.
The company's quarterly results were impacted by lower contributions from its Asset Management arm and Commodities and Global Markets unit. Macquarie Asset Management experienced a softer quarter compared to last year, primarily due to the timing of investment-related income from asset realisations. Meanwhile, the Commodities and Global Markets unit saw reduced contributions, particularly from lower net interest and trading income in North American Gas and Power.
Adding to investor concerns, Macquarie announced that Chief Financial Officer Alex Harvey will step down at the end of 2025, with his successor, Frank Kwok, set to take over after an extended handover period. This leadership transition comes at a challenging time for the company, as it faces an ongoing lawsuit from Australia's corporate regulator (ASIC) alleging misreporting of up to A$1.5 billion worth of short sales over a 15-year period. The combination of weak quarterly results, leadership changes, and regulatory challenges has led to a significant sell-off in Macquarie's shares.
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