Macquarie Group (ASX:MQG) is Australia’s leading investment bank, and one of the biggest companies in the Australian share market.

MQG has evolved over time into a complex portfolio of businesses which include banking, investment banking, asset management and private equity.

Today MQG cut its 1H12 profit guidance due to difficult trading conditions at a number of its key divisions.

MQG noted that the Macquarie Capital, Macquarie Securities and Fixed Income, Currencies and Commodities businesses were all suffering from the recent market volatility.

1H12 net profit is forecast to be lower than the prior corresponding half’s $403 million result.  However, FY12 earnings were still expected to top FY11 due to an improved second half.

The FY12 outlook was predicated on no further deterioration in market conditions.

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Macquarie Group (MQG) is Australia’s largest and leading investment bank and is considered among the market’s blue chip stocks.

MQG has evolved over time into a complex portfolio of businesses which include banking, investment banking, asset management and private equity.

On 29 April, MQG reported a 9% fall in FY11 net profit to $956 million, slightly ahead of its previous guidance of a $947 million profit.

MQG blamed the poor result on subdued equity market activity and higher costs.  Earnings did recover in the 2H11 though, with profit rising 37% from the 1H11.

The group also declared a final dividend of $1.00 per share (unfranked), which was ahead of analyst estimates of an 87.6 cent dividend.

Macquarie Group said it was more optimistic about the FY12, although the outlook was dependant on market conditions and the performance of its investment banking division.

Nevertheless, it will be one of the stocks to watch if market conditions ultimately do improve.

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Macquarie Group (MQG) is Australia’s largest and leading investment bank, and is widely considered among the blue chip stocks.

MQG has evolved over time into a complex portfolio of businesses which include banking, investment banking, asset management and private equity.

On Friday, MQG posted its first half results. First half net profit fell 16% to $403 million (from $479 million) beating previous guidance of a 25% drop.

Should market conditions continue to improve, MQG should report FY profit in line with the prior year.

Considering MQG reported FY earnings of $1.05 billion last year, second half earnings of $647 million are required to deliver that FY result.

MQG declared an interim dividend of 86 cents a share, in line with the interim dividend from last year.

The results and comments were well received by the stock market, which saw MQG shares finish the session up a whopping 4.8%.

Macquarie Group (MQG) is Australia’s largest investment bank, and is a leading provider of banking, financial advisory, investment, and funds management services.

It is also one of the main blue chip stocks in the share market.

MQG recently advised that it expects a 25% drop in 1H11 earnings from a year ago due to weak trading conditions in most of its markets.

MQG advised that activity was being hampered at its Securities, Capital and Fixed Income, Currencies and Commodities divisions, and that uncertain conditions were making short-term forecasting difficult.

Despite the downgrade, MQG maintained that FY11 earnings are expected to be broadly in line with FY10 assuming more normal market levels.

MQG shares slumped 4.7% following the announcement, and it will remain as one of the stocks to watch in coming months given that further profit downgrades cannot be ruled out.