(Reuters) -Macquarie Group posted a rise in first-half profit on Friday, helped by a strong performance in its asset management and banking and financial services units, although it came up short of expectations as its commodities business weakened.
Australia’s top investment bank will buy back up to A$2 billion ($1.30 billion) of shares over the next 12 months.
Macquarie said net profit attributable was A$1.66 billion ($1.08 billion) for the six months ended September 30, higher than A$1.61 billion a year earlier, as profit from its asset management unit rose 43%, on higher performance fees.
Profit for the banking and financial services segment jumped 22%, on growth in the home loan portfolio and deposits.
However, the company’s overall profit missed a Visible Alpha consensus estimate of A$1.86 billion as profit from its commodities and global markets unit, one of its biggest profit contributor, declined 15%.
This was largely due to higher expenses as the firm increased its investment in its commodities and global markets platform and due to higher transaction-related costs.
Profit from its Macquarie Capital division surged 92% benefiting from higher income from mergers and acquisitions and brokerage fees.
The company declared an interim dividend of A$2.80 per share, higher than the A$2.60 declared last year.
($1 = 1.5389 Australian dollars)
(Reporting by John Biju in Bengaluru; Editing by Tasim Zahid and Sriraj Kalluvila)
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