Macquarie Bank's first-half earnings are set to reach record levels once again, according to the bank's chief executive Allan Moss.
In a statement to the market, the bank reported that superannuation reforms resulted in large first quarter inflows in Macquarie Wrap and Cash Management products and were instrumental in the group's success.
Macquarie reported total unconsolidated funds under management at the end of June 2007 of $102.3 billion.
The bank reported the largest dollar increase for the June quarter, adding $10.3 billion or 11.2 per cent.
Moss noted that there were some seasonal outflows post 30 June, however all business groups were profitable.
"All groups are operating profitably, there are no unusual provisions or write-downs," Moss said.
According to Moss, the group has no problem trading exposures, only modest holdings of AAA and AA rated Collateralised Loan Obligation and Collateralised Debt Obligations and no material exposures not already known to investors.
"Our main business focus is making returns by providing services to clients rather than by principal trading," he said.
Macquarie advised investors in August that it had realised US$6 million in losses, or around five per cent of the aggregate value of Macquarie Fortress Notes.
"We have seen a lot of activity in Macquarie Bank today after the investment bank said that earnings would be up strongly for the current half year relative to the previous corresponding half, suggesting a record half year result," CMC Markets dealer Matthew Lewis said.
The bank announces its half year results on November 13.
Macquarie shares rose 6.2 per cent or $4.48 to $76.98.
