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Macquarie's investment banking head Nicholas Moore will replace chief executive officer Allan Moss, who is retiring after almost 15 years helming Australia's biggest securities firm.
Moore, 49, who runs the division that generates more than 50 per cent of profit, takes the top job May 24, the Sydney-based company reported.
Moss forecast another year of record earnings, capping a 30-fold surge in profit during his tenure as chief executive of a bank that employed 50 people in two offices when he joined in 1977.
Moore takes charge of 12,400 employees across the globe and more than $200 billion of assets, amid a slump in markets that's pushed the stock down 36 per cent from its record high. The decline continued yesterday.
"The result is good and the outlook is fine, but the market is reacting to the change in leadership," said Angus Gluskie, who manages about $500 million at White Funds Management in Sydney. "Moore is perceived to be a bit more cavalier, whereas Moss built the company with a firm hand on risk controls."
Macquarie shares fell 7 per cent to A$62.49 ($71.65) at 11:13am in Sydney compared with a record high of A$98.64 on May 17 last year.
Net income for the second half will at least meet last year's A$733 million, Moss said, affirming a November forecast and reiterating that the bank has no problem investments in subprime mortgage assets or credit markets. He added that "conditions remain challenging in credit markets".
"We're more cautious on the outlook for Macquarie given that prospects for global growth have changed the past few months," Gluskie said.
Moore is an accountant who joined Macquarie in 1986 and has led its investment banking business since 2001, overseeing a 10-fold increase in profit as the company grew overseas.
Michael Carapiet was promoted to run the unit, which forecast deals this year to exceed 2007's record A$160 billion.
Moss predicted on November 13 that a rally in equity markets may falter in the second half, making it harder to repeat its record 45 per cent profit growth of the first six months. Since then, the MSCI World Index has dropped 10 per cent amid concern the crisis in subprime mortgages may spark a US recession.
- BLOOMBERG