By Alice Uribe

SYDNEY--Macquarie Group Ltd.'s first-half net profit roughly doubled as Australia's biggest investment bank and asset manager sharply lifted its interim dividend and announced a 1.5 billion Australian dollar (US$1.13 billion) capital raising.

Macquarie said net profit for the six months through September rose to A$2.04 billion, from A$985 million a year earlier. It said earnings were in line with the A$2.03 billion net profit for the half year through March.

The company in September said it expected first-half earnings for fiscal 2022 to be similar to its net profit in the prior six months.

"This first half saw a significant increase in net profit contribution from all four operating groups compared with 1H of FY 2021, a period which was affected by the Covid-19 pandemic. Today's result is consistent with a strong 2H of FY 2021 and reflects improved trading conditions across our diverse platform," said Chief Executive Shemara Wikramanayake.

The company's annuity-style activities, which are undertaken in part by Macquarie Asset Management, generated a combined net profit of A$2.52 billion, up 57% on year.

Macquarie's markets-facing activities, which are undertaken by Macquarie Capital and most businesses in the Commodities and Global Markets unit, together contributed A$1.47 billion to net profit, more than doubling on year.

Macquarie Capital contributed A$468 million to net profit, up from a loss of A$189 million in the first half of fiscal 2021, which Macquarie said reflected higher fee and commission income driven by mergers and acquisition.

CGM contributed A$1.73 billion to net profit, up 60% from A$1.08 billion the previous year, which included increased revenue across commodities, with strong risk management income from gas and power, resources, and agriculture.

Macquarie also announced it was seeking to raise A$1.5 billion via a non-underwritten institutional placement, which will be followed by a non-underwritten share purchase plan.

"Macquarie has experienced a period of sustained and material growth in capital requirements across our annuity-style and markets-facing activities," said Ms. Wikramanayake. "Raising new capital provides us with additional flexibility to invest in new opportunities where the expected risk-adjusted returns are attractive to our shareholders, while maintaining an appropriate capital surplus."

The placement price would be determined by a bookbuild to be conducted Friday commencing at A$190.00 per share, which represents a 4.0% discount to the last closing price of A$197.83. The placement is expected to result in the issue of approximately 7.9 million shares, representing 2.1% of its stock.

Macquarie will offer eligible shareholders in Australia and New Zealand the opportunity to participate in a non-underwritten SPP with a maximum application size of A$30,000 per eligible shareholder. The size of the SPP will depend upon demand from eligible shareholders, Macquarie said.

Directors of the company declared an interim dividend of A$2.72 per share with dividend payout ratio to 50%, compared with A$1.35 a year ago. Analyst consensus had been for a dividend of A$2.70 according to data compiled by FactSet.

The Australian financial services company said its financial position comfortably exceeds regulatory minimum requirements with group surplus capital of A$8.4 billion at the end of September, down from A$8.4 billion at end-March. Macquarie's banking unit had a Common Equity Tier 1 capital ratio of 11.7% at the end of September.

Macquarie, which has a reputation among analysts for conservative forecasts, did not provide guidance.

"We continue to maintain a cautious stance, with a conservative approach to capital, funding and liquidity that positions us well to respond to the current environment," said Ms. Wikramanayake.

Write to Alice Uribe at alice.uribe@wsj.com

(END) Dow Jones Newswires

10-28-21 1801ET