Shares in the Sydney-based investment bank bucked Friday's falling share market, rising 1.6 per cent after Macquarie delivered first-half profits of $1.05 billion and announced an interim dividend of $1.90 a share.

Earnings for the half were down 2 per cent but managing director Nicholas Moore signalled the bank was on track to roughly match the previous year's record profit of $2.06 billion, saying profits would be "broadly in line" with last year.

While other banks are struggling with lack of growth opportunities, Macquarie's biggest and star-performing division, asset management, helped underpin the result. Assets under management rose 3 per cent to $493.1 billion. That rise helped the bank net $857 million in income from Macquarie Asset Management.

Investors flock to infrastructure

After a surge in fees in the previous half, this business remained the biggest contributor to earnings, and the bank said investors continued to flock to infrastructure, in which it is the world's biggest asset manager.

Returns were weaker in Macquarie's traditional investment banking and stockbroking arms, while profits from its corporate and asset finance business also dropped in the half.

Low interest rates present a challenge for banks, but Macquarie is benefiting from a wave of money seeking to invest in the asset class, which has become increasingly attractive to big investors such as pension funds.

Shemara Wikramanayake, head of Macquarie Asset Management, said the funds management business had raised $7.4 billion in this half, which meant the business had about $12 billion in "dry powder" to invest.

"We're in an environment where we're in a low-return world, and investors are really trying to chase superior returns for good risk, and alternatives is a place where they're allocating a lot of money, particularly real assets," she said.

"We're seeing, because of what's going on in the macroeconomic backdrop, a lot of money flowing into our asset class. And because we are the largest, and a well-performing manager in that class, we're seeing a lot of demand for our products," said Ms Wikramanayake, who is viewed as a potential successor to Mr Moore.

Profit jump in financial services

Within infrastructure, the bank was eyeing off further expansion in agriculture, some real estate assets, and the Asian region, Ms Wikramanayake said.

As well as funds management, Macquarie is putting a greater emphasis on banking and financial services, and this arm of the bank delivered a 54 per cent jump in earnings, contributing $261 million to the group.

Bell Potter analyst T.S. Lim said a highlight of the result was the performance in the funds management business, which appeared to be "powering ahead", and would be increasingly important for driving profits.

"They are in a niche where they are going to make more money further down the track," said Mr Lim, who has a "buy" rating on the stock.

Elsewhere in banking, ANZ shares dropped after the bank said its profits would take a $360 million hit in the second half from new charges for at-risk debts and restructuring costs.

It follows more than $700 million in one-off charges that were booked by ANZ six months ago.

Macquarie's interim dividend, up from $1.60 last year, will be 45 per cent franked and paid on December 14.

Macquarie Securities, the group's broking arm, made a lower contribution to profit as trading volumes were impacted by market uncertainty.

Macquarie Capital, the firm's advisory unit, had a stronger half on the back of the sales of investments even as fees from working on deals fell.

The commodities and financial markets division made an improved contribution to profit, but that largely stemmed from the sale of equity investments and lower impairments.

Annualised return-on-equity was 14.6 per cent in the six months ended September 30.

with Joyce Moullakis