A falling Australian dollar and rising financial market activity has Macquarie Group on track to post a record annual profit of almost $1.9 billion.
The investment and banking firm expects profit in the six months to the end of September to be 40 per cent higher than a year ago.
That indicates a half year profit of $949 million, and with Macquarie also forecasting second half profit to be broadly in line with the first half, puts it on track for a full year profit of $1.898 billion.
That would surpass its record profit made in 2008 of $1.803 billion, which analysts had been expecting to be matched in 2016.
Macquarie shares rose as much as 3.1 per cent during Monday's session and closed up $1.77, or 2.34 per cent, at $77.57.
Macquarie operates in more than 28 countries and generates 70 per cent of its income outside of Australia, meaning a weaker Australian dollar is good for its bottom line.
The company has also enjoyed improved conditions across most of its businesses.
Its asset management, corporate finance and banking services operations are growing and bringing in increased performance fees, Macquarie said.
Its securities business has benefited from volatile equity markets, and the freeing up of China's capital and credit markets, which Macquarie said had significantly lifted client activity.
Despite plunging commodity prices, most notably in energy markets, trading activity was also higher in that sector, it said.
Macquarie's forecasts came with the usual warning that they remain subject to changes in market conditions, foreign exchange movements, the cost of its conservative approach to funding and capital, and potential regulatory and tax changes.
The company will report its half year financial results on October 30.
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