By Stuart Condie

SYDNEY--Macquarie Group Ltd.'s first-half net profit fell by 32% as Australia's biggest investment bank and asset manager absorbed higher credit and other impairment charges tied to the impact of the coronavirus pandemic.

Macquarie on Friday said net profit for the six months through September dropped to 985 million Australian dollars (US$707 million), compared with A$1.46 billion a year earlier. Management had forewarned in September that first-half net profit would be about 35% down on a year earlier.

The group declared an interim dividend of A$1.35 per share, compared with A$2.50 a year ago.

Analyst consensus had been for a A$970 million net profit and a dividend of A$1.30, according to data compiled by FactSet.

Macquarie said the result included A$447 million of credit and other impairment charges primarily related to the economic impact of the coronavirus. The unfolding effects of the pandemic meant it was unable to provide meaningful full-year guidance, it said in a filing to the Australian Securities Exchange.

Managing Director and Chief Executive Shemara Wikramanayake said the coronavirus had hit clients, and delayed the group's realization of assets from its balance sheet and funds.

"Recent months have been overshadowed by the profound human impact of the Covid-19 global health crisis and its economic consequences. Those impacts are reflected in our result," Ms. Wikramanayake said.

Retail banks Commonwealth Bank of Australia, Westpac Banking Corp., National Australia Bank Ltd. and Australia and New Zealand Banking Group Ltd.--with whom Macquarie competes through its Macquarie Bank unit--logged billions of dollars in impairments and provisions in their fiscal 2020 results, much of it related to the pandemic.

Macquarie said annuity style activities undertaken by Macquarie Asset Management, Banking and Financial Services, and parts of its commodities and global markets business generated a combined A$1.60 billion net profit, down 7% on a year earlier.

Markets-facing activities at Macquarie Capital and most of its commodities and global markets business generated a combined A$672 million net profit, down 42%. Macquarie Capital fell to a A$189 million net loss on significantly lower investment-related income, lower fee and commission income, and higher credit and other impairment charges.

Operating expenses fell 5% from the first half of fiscal 2020 to A$4.27 billion.

Write to Stuart Condie at stuart.condie@wsj.com

(END) Dow Jones Newswires

11-05-20 1756ET