Shares in Australia's biggest investment bank have retreated after it said it expects full year profits to rise "materially" as market conditions show some signs of improvement.
Macquarie Group expects profits to rise by around 10 per cent for its current financial year, which ends on March 31.
However, that was less than analysts were expecting.
Macquarie says a rise in tax rates and weakness in its trading and investment businesses will limit earnings.
Around 10:35am (AEDT), Macquarie Group shares were down 3.9 per cent to $37.22.