Macquarie Bank's highest-paid banker, Nick O'Kane, is leaving, with Simon Wright announced as his successor

“A weaker trading update, reflecting current market conditions for M&A activity and asset realizations, is disappointing,” said Barrenjoey analyst Jon Mott, but added that the medium-term outlook looks broadly unchanged.

“Nick O'Kane is leaving the company as director [commodities] It is a surprise. He enjoys a high reputation in the market.”

The commodities group recorded exceptionally good trading conditions in fiscal 2023 and its earnings this year were expected to be “broadly in line” with 2022, “although volatility could create opportunities,” the bank said.

It pointed to lower fee and commission income during the quarter as trading revenue in North American energy markets fell compared to exceptional numbers in the previous third quarter.

Macquarie reports a financial year ending March 31 and provided third-quarter figures for the three months to December in Tuesday's update.

The update could lead to possible downgrades to full-year expectations for net profit of around 4 percent, Mr. Mott predicted. Shares in Macquarie were trading 2.5 per cent lower at $183.50 after half an hour of ASX trading.

In the asset management division, operating revenues in the second half of the year are expected to be “significantly lower” than in the second half of 2023, while at Macquarie Capital, “transaction activity in FY24 is expected to be slightly lower than in FY23.”

Things are looking better in the banking and financial services sector that grants mortgage loans. Macquarie points to growth in its loan portfolio, deposits and platform volumes in the third quarter. The real estate loan portfolio stood at $118 billion at the end of December, up 3 percent compared to the end of September.

Presentation slides released with the update highlighted retail banking growth strategies in Australia, including targeted deposit protection.

Macquarie also used its operational briefing to highlight its presence in Asia.

Mr O'Kane has been with Macquarie for 28 years, including five years as group leader.

“I really want to thank Nick,” Ms. Wikramanayake said during the briefing. “It was an incredible journey. He has made a tremendous contribution and influence.” She pointed to deep global teams in the commodities and markets divisions, adding: “How they are positioned gives him comfort in this move, which he has communicated to the team for a number of personal reasons .”

Mr. Wright has been with Macquarie for 35 years, leading oversight of the global financial markets platform and as a senior member of the commodities and global markets leadership team.