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Macquarie Group Limited (MQG) posted a $479 million net profit for the six months to 30 September, up 79% from the prior six months. The investment bank foreshadowed that it was expecting a similar result for the second half of the year.

Macquarie said the net profit result was down 21% from the previous corresponding period, however operating income, before write-downs and impairment charges, came in at $3.5 billion, up 9% from the first half, and down 11% on the previous corresponding period.

The bank said a general recovery in the stock markets around the world, as well as strengthening metal prices had been the key drivers behind the recovery.

Managing director and CEO, Nicholas Moore, said the bank had continued to be hit by writedowns.

“Our first half result reflects improved market conditions and the diversification and global reach of our businesses,” Mr Moore said.

”However, the result was impacted by a number of one-off items and equity accounted gains and losses resulting in a net charge of $414m.”

The bank reported profits from all of its divisions with the exception of the Real Estate Banking Division.

Meanwhile, earnings per share for the half year was $1.50, up 60% on the prior half-year but down 31% on the previous corresponding period.

The bank also said that it had been hit by the strengthening Aussie dollar with reported assets under management decreased by $27 billion to $216 billion as a result.

”The pro-forma impact on AUM, taking into account the Delaware Investments acquisition and the MAp internalisation – both of which are anticipated to be finalised post balance date – resulted in a significant increase in AUM to approximately $345 billion,” the bank added.

Capital at 30 September 2009 was $11.5 billion, which was $4.5 billion in excess of the group’s minimum regulatory capital requirement.

The balance sheet for the company was helped by several important, but one-off, gains including the internalisation of Macquarie Airports and Macquarie Leisure Trust.

The bank also banked gains from the takeover of Macquarie Communications Infrastructure Group by Canada Pension Plan Investment Board.

Looking ahead, Mr Moore said that the positive effects of strong in ECM and credit businesses would taper off in the second half.

“We currently expect the profit for the second half of 2010 to be broadly in line with the first half but this remains subject to market conditions and significant swing factors and excludes the impact of one-off items,” Mr Moore said.

Mr Moore noted that FY10 trading was likely to be characterised by fewer one off items, a higher compensation ratio and increased effective tax rate consistent with historic levels, lower earnings on capital reflecting lower global interest rates and higher cost of funding.

At the close of business Thursday, Macquarie shares were trading at $49.25.

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