Macquarie Keeps Guidance For Higher Annual Profit

   By Ross Kelly 
 

SYDNEY--Macquarie Group Ltd. (MQG.AU), Australia's biggest investment bank, Thursday kept its guidance for stronger profit this year after higher performance fees from its infrastructure funds helped offset weaker commodities markets.

Net profit in the year to March 31 was still expected to be higher than the 851 million Australian dollars (US$778 million) reported the previous year if market conditions remained stable, Macquarie said in a statement.

Earnings were boosted by A$65 million in performance fees collected from U.S.-listed Macquarie Infrastructure Co. (MIC) and Australian-listed Macquarie Atlas Roads Group (MQA.AU). The division is also benefiting from positive foreign-exchange movements amid a recent drop in the value of the Australian dollar against the U.S. currency, Macquarie said.

Earnings in the fixed income, currencies and commodities business are expected to be flat this fiscal year, as resource equity markets continue to remain challenging, Macquarie said. Prices for commodities have come under pressure as China's economy cools.

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