Macquarie Group's profit is set to surpass last year's $1.27 billion, as financial markets continue to improve.
Macquarie had previously forecast a 2014/15 profit broadly in line with the previous year's, which was the company's largest profit since the global financial crisis.
But Macquarie now says profit will be "slightly up" in its current fiscal year, which ends on March 31.
That is largely due to increased performance fees in its funds group - which manages assets ranging from infrastructure and real estate to shares.
The news gave Macquarie shares a boost, adding 60 cents, or 1.04 per cent, to $58.55, while the wider market suffered a substantial fall.
CMC Markets chief strategist Michael McCarthy said investors were pleased to see earnings growth being driven by improved performance.
"Most of the growth delivered during the reporting season came from cost cutting measures rather than systemic growth," he said.
"Any company that shows growing earnings based on growing revenue is likely to find favour and Macquarie is demonstrating that."
Macquarie said it expects its profit in the six months to September 31 to be up by 25 to 30 per cent on the $501 million it made in the same period last year.
Profit in the second half of its fiscal year - the six months to March 31, 2015 - is then expected to be moderately higher than in the first half, Macquarie said.
The company warned its financial outlook was subject to a range of challenges, including market conditions, foreign exchange movements, regulatory changes and the cost of obtaining funds and capital.
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