Macquarie Group Ltd., Australia's largest investment bank, said first-half profit dived 21 percent from a year earlier after writing down assets because of the global economic downturn.
The bank, which has investments spanning real estate, stocks and toll roads, said Friday it had net profit of 479 million Australian dollars ($439 million) for the six months through September, bettering its forecast of AU$435.5 million profit.
Writedowns and other losses on investments totaled AU$1 billion, more than offsetting gains from listed investment funds of AU$414 million. Lower fees from advisory work and a fall in trading income also contributed to the profit fall.
Macquarie CEO Nicholas Moore said profit for the current half year through March 2010 will likely be "broadly in line" with the latest six-month results.
"But this remains subject to market conditions and significant swing factors and excludes the impact of one-off items," Moore said.
"While there have been some improving trends in a number of major markets, overall we continue to maintain a cautious stance with a conservative approach to funding and capital," he said.
Operating income of AU$3.5 billion was down 11 percent from a year earlier and up 9 percent from the half year through March 2009.
Macquarie shares rose 1.8 percent in early trading.
