Wealth investor Macquarie Group has enjoyed a bumper first-half and is expecting more good news as demand soars for its fixed-income products.
The investment bank's profit surged by 35 per cent to $678 million in the six months to September 30, led by the Macquarie Funds Group which provides fixed-income annuity products.
Only one of Macquarie Group's six divisions made a reduced profit, compared with the same time in 2013, as a weaker Australian dollar boosted its overseas earnings.
Macquarie Group chief executive Nicholas Moore was upbeat about the full-year prospects for the diversified investment firm, which made $1.265 billion during its last financial year.
"The overall result will be slightly up on where we were last year based on the information we have available to us today," he told reporters during a media conference call on Friday.
The group's 35 per cent first half-year net profit increase was even stronger than their September forecast of a 25 to 30 per cent profit rise.
Macquarie, which derives 65 per cent of its income overseas, also benefited as the Australian dollar fell from close to 95 US cents in July to 88 US cents.
IG Markets strategist Evan Lucas said the "very, very conservative" funds management division, which posted a 57 per cent rise in half year profit to $785 million, had underpinned Macquarie's "very solid result" overall.
"That is really driving this result, quite substantially driving this result," he told AAP.
"It means that more Australians particularly continue to head towards the conservative side rather than going back to what was a risky trading idea back before the GFC."
But it was the conduct of Macquarie's financial advisers before the global financial crisis, which is continuing to reverberate.
Mr Moore confirmed that 189,000 letters had been sent out to past and present clients, inviting them to seek compensation, since the Australian Securities and Investments Commission made an order in August.
The group, however, is yet to set compensation, which the chief executive said would be based on Financial Ombudsman Service principles.
"We've introduced new platforms, we've introduced new training programs, we've introduced new management structures and we're going through a very full client review and remediation process," he said.
The company also announced that Origin Energy chairman Gordon Cairns would be joining the board of Macquarie Group and Macquarie Bank as an independent director from November 1.
Macquarie Group shares rose by $1.44, or 2.4, to $61.29 by 1501 AEDT.
MACQUARIE MAKING MILLIONAIRES
* Half year net profit of $678m, up 35pct on $501m in 2013/14
* Net operating income of $4.3b, up 17pct on $3.7b
* Interim dividend of $1.30 a share, up from $1.00.
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