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Nicholas Grove is a Morningstar journalist.

Macquarie Group (MQG) on Friday announced an 18 per cent year-on-year rise in net profit to $361 million for the first half of fiscal 2013, just short of market expectations for a figure of around $388 million.

The investment bank declared a half-year dividend of 75 cents a share, up from 65 cents a share in the same period in the previous year and in line with the second half of fiscal 2012.

This represents a payout ratio of approximately 70 per cent. The record date is for the half-year dividend is 9 November 2012 and the payment date is 12 December 2012, the company said.

Earnings per share for the half rose 22 per cent year on year to $1.06, while annualised return on equity rose from 5.7 per cent previously to 6.6 per cent.

Macquarie Group chief executive Nicholas Moore said the six-month period to 30 September 2012 saw the company's annuity-style businesses continue to perform well.

"Macquarie's capital-markets-facing businesses, although continuing to face subdued market conditions, delivered a combined result that was up on the first half of 2012 due to improved conditions for Fixed Income, Currencies and Commodities (FICC)," Moore said in a statement.

"Macquarie's other capital-markets-facing businesses, Macquarie Securities and Macquarie Capital, continued to be impacted by low activity levels across equity capital markets, and mergers and acquisitions," he said.

"Macquarie Securities was impacted by low levels of client activity combined with run-off costs in its legacy businesses, partially offset by ongoing cost efficiencies."

The company's operating expenses for the half were down 9 per cent on the same half in the previous year to $2.6 billion, Moore said.

Macquarie's assets under management at September 2012 were $341 billion, up from $327 billion at March 2012, he said.

In an update on its capital management strategy, Macquarie said that out of a previously announced $500-million share buyback, it had bought back $251 million of shares at an average price of $25.58.

Macquarie also said its funding and balance sheet position remained strong, with regulatory capital of $12.6 billion at 30 September 2012 in excess of the minimum regulatory capital requirement on a harmonised Basel III basis.

While not providing any specific earnings guidance, Moore reiterated that Macquarie continues to expect an improved result in fiscal 2013, provided market conditions are not worse than those experienced in fiscal 2012.