It now expects annual net profit to rise by 10 percent to 20 percent above the A$1.3 billion (706 million pounds) posted in the year to March 2014. Macquarie had said in October it expected FY15 profit to be up slightly from the year before thanks to increased performance fees from its listed and unlisted funds.

The latest update is higher than the average forecast of a 9 percent increase in FY15 net profit, according to Thomson Reuters I/B/E/S poll of 16 analysts.

Macquarie shares rose as much as 6.75 percent in early trades, posting their biggest daily percentage gain since May 2013. At 1131 GMT, they were up 5.3 percent at A$58.2.

The group's market-facing businesses - Macquarie Securities, Macquarie Capital and Fixed Income, Currencies and Commodities -have likely outperformed with a strong pipeline of share sales and a weak Aussie dollar boosting offshore earnings, analysts said.

Australia saw a record year of initial public offerings in 2014, with Macquarie retaining its top billing. The bank helped raise $3.9 billion in 2014 against $1.6 billion in the previous year, and increased its share of capital to 27 percent from 25 percent.

The Australian dollar fell 8.5 percent last year, reflecting China's slowing growth and the deterioration of Australia's terms of trade.

"There will be some upgrades coming for this year. This should have a positive impact on their price to book as well," said TS Lim, Sydney-based analyst at Bell Potter.

"They have 65 percent of the earnings coming from overseas. So, with the dollar weakening that will have a big impact as well."

(Editing by Stephen Coates)

By Swati Pandey