CORRECTED-UPDATE 1-Australia’s Macquarie Group maintains FY profit forecast

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FILE PHOTO: The logo of Australia’s biggest investment bank Macquarie Group Ltd adorns the main entrance to their Sydney office headquarters in Australia, October 28, 2016. REUTERS/David Gray/File Photo

(Reuters) – Australia’s largest investment bank Macquarie Group on Tuesday said it expects a 15 percent rise in profit for the full year ended March, fueled by higher revenue from its market-facing businesses.

The guidance reiterated the profit outlook it gave in mid-November.

The Sydney-based company said a jump in value of advisory activities by its unit Macquarie Capital and strong performance by its commodities platform will contribute to its full year net profit.

“Macquarie remains well positioned to deliver superior performance in the medium term,” said Wikramanayake, in her first results announcement as chief executive officer.

The company also said profit contribution of its core “annuity-style businesses” in the third quarter was slightly higher than a year ago, but was down for the nine months to December because of lower performance fees in its asset management business.

The bank’s asset management business, its biggest-earning unit, saw its assets under management fall 2 percent to A$551 billion ($389.06 billion) as at Dec. 31, compared to three months earlier.

Macquarie’s common equity tier 1 capital ratio as at Dec. 31 was 10.8 percent, up from 10.4 percent at Sept. 30.

(This story corrects headline to say forecast is maintained, not upgraded; corrects 2nd paragraph to show company had already forecast a 15 percent rise in profit, instead of reference to an outlook for a 10 percent rise given earlier)

Reporting by Nikhil Kurian Nainan in Bengaluru; Editing by David Gregorio and Grant McCool

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