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Macquarie Group, Australia's biggest investment bank, reported a 26 per cent rise in second-quarter profit, helped by strong growth in Asia and takeover activity, but its shares fell 5 per cent on a cautious outlook.
It forecast a second-half result at least in line with last year, but warned that equity market conditions might not be as favourable and that some businesses could be affected by seasonal conditions.
Macquarie, which completed a restructuring this month to accelerate global expansion, said net profit in the six months to September climbed 45 per cent to A$1.06 billion, from A$730 million a year ago.
"Market conditions are generally very volatile and frankly somewhat nervous," chief executive Allan Moss said.
Macquarie's first-half profit outpaced its own forecast, but second-quarter profit fell 17 per cent on the first quarter as a global credit crisis hit deal flows.
The interim dividend of A$1.45 a share fell short of analysts' forecasts for A$1.58.
Macquarie reiterated that it had no material problem credit exposures, no exposures to structured investment vehicles and US$300 million holdings of triple A and double A rated CDOs.
Its stock is down 1.4 per cent for the year, underperforming a 13.9 per cent rise in the S&P/ASX 200.
- Reuters
