News: MQG UPDATE 1-Australia's Macquarie Group posts 11.2% rise in interim profit

(Adds details on results, Macquarie Capital)

Nov 1 (Reuters) - Investment bank Macquarie Group Ltd (MQG) on Friday posted a better-than-forecast 11.2% rise in its first-half net profit, but reiterated a weak outlook for fiscal 2020 citing unfavorable market conditions and regulatory uncertainty.

Profit for the six months ending Sept. 30 rose to A$1.46 billion ($1.01 billion) from A$1.31 billion a year earlier. The bank had earlier this year forecast profit growth of 10% in the interim period.

The bank declared an interim dividend of A$2.50 a share, up from A$2.15 last year.

The result reflects the continued divide between Macquarie's overseas and domestic operations, as growth in its foreign investments offset weaker local lending due to record-low interest rates.

By far, the bank's biggest breadwinners are its Asset Management and Commodities and Global Markets businesses.

However, income from Macquarie's investment banking arm- Macquarie Capital- saw a 20% decline from last year due to lower fee income.

Macquarie had earlier this year raised about A$1 billion to ramp up investment in renewable energy and infrastructure.

The bank in July had dismantled its shrinking financing unit following years of lower volumes and subdued profits.

Macquarie has been able to avoid the public scrutiny faced by its peers as it has limited exposure to retail banking. Its stock has outperformed the broader financial index in the year to date, rising about 23.3%.

Earlier this week, the investment bank said it will scale back its cash equities businesses in most areas outside the Asia Pacific region as tougher regulations bite.

($1 = 1.4510 Australian dollars)