Macquarie warns on profit

Macquarie Group, Australia's top investment bank, tipped a five per cent fall in second-half profit yesterday but said market conditions were returning to normal. Macquarie, which has shed its managed listed funds model to focus on a more traditional investment banking model, said its balance sheet was strong with A$3.2bn (£2bn) in excess capital at 31 December. The bank previously said it expected its year to March 2011 net profit to be broadly in line with last year's A$1.05bn.