Macquarie Group has forecast that its full-year result for the year to next March 31 will be up about 10% on the previous year after reporting a 5% rise in first-half net profit on Friday.
Investors appreciated the news and sent the shares up 3.8% to $122.42.
The bank said its interim net profit for the six months to September 30 was $1.3 billion and was boosted by a solid performance in its commodities, markets and capital arms, which offset declines in its asset management and corporate finance divisions.
“Macquarie remains well-positioned to deliver superior performance in the medium term due to our deep expertise in major markets, strength in diversity and ability to adapt the portfolio mix to changing market conditions, the ongoing benefits of continued cost initiatives, a strong and conservative balance sheet and a proven risk management framework and culture,” incoming CEO, Shemara Wikramanayake, said in a statement on Friday.
“We remain confident that we’re well positioned to deliver superior performance,” Ms. Wikramanayake said. “You can see that coming through in this half,” she said.
Ms. Wikramanayake replaces Nicholas Moore as Macquarie’s CEO on November 30. The bank declared an interim dividend of $2.15 a share, up from $2.05 last year.
For the year to next march, (2018-19), Macquarie had provided guidance that results are expected to be “broadly in line” with 2017-18 when the group reported a record $2.56 billion net profit.
Plans for a share buy-back floated last year have been scrapped.