AUSTRALIA'S MACQUARIE BANK UPGRADES YEAR PROFIT FORECAST.

SYDNEY, Feb 1 Asia Pulse - Australia's largest investment bank Macquarie Bank Ltd (ASX:MBL) has upgraded its guidance for the full year, now expecting to beat its record A$823 million (US$623.18 million) profit booked in 2004/05.

Macquarie had previously forecast that the annual result would match last year's record figure.

The bank has also flagged that it will continue to spin off assets into new specialist funds around the globe over the coming months, despite the softer markets that have pulled back profits during the second half.

Macquarie Bank managing director and chief executive officer Allan Moss said the forecast was for this year's profit to be "slightly up" on the previous year's record result.

That's despite the fact that the 2004/05 profit included a A$91 million (US$68.91 million) one-off gain from the formation of industrial property fund Macquarie Goodman Group.

Mr Moss told an analysts' briefing that the bank's businesses continued to perform well.

As had been foreshadowed at the interim result, the bank said there will be no significant performance fees from listed specialist funds in the second half of the current financial year, which ends on March 31.