Analysts predict tough year ahead for Macquarie

Analysts believe that there is little prospect of an improvement in Macquarie Group's share price over the next year as the details of its record $1.8 billion profit are digested. Several analysts point to a 5 per cent tax rate achieved in the second half of the year and 15 per cent for the whole year as being unsustainable, with a rate of 20 per cent more likely in future. Matthew Davison, lead analyst at Merrill Lynch, points out that the record result had a strong reliance on performance fees from unlisted funds, equities trading and one-off sales. The bank has already lined up $750 million of assets to be sold off over the next year as it tries to match last year's profit result this year.

Source: Sydney Morning Herald