* H1 net profit A$1.05 bln vs A$999 mln analyst estimates
* No sign of improvement for Asia securities business - Moore
* Partially-franked interim dividend of A$1.90 a share
* Full-yr earnings outlook reaffirmed (Recasts, adds comments from CEO and fund manager)
By Jamie Freed
SYDNEY, Oct 28 (Reuters) - Macquarie Group Ltd MQG.AX on Friday reported a slight fall in first-half profit and a shift in its earnings balance toward Australia as a result of tough conditions in its Asian equities business, with no sign of improvement in the rest of the year.
Australia's biggest investment bank has increased its focus on the domestic mortgage market and retail and business banking, as well as its large asset management business, to help reduce the volatility of its earnings from capital markets.
But Chief Executive Nicholas Moore offered little hope of an improvement in Asia in the second half, telling analysts the securities business remained "tough".
"We have seen what happens when the risk appetite changes, particularly in Asia," he said.
Macquarie reported a net profit of A$1.05 billion ($796.64 million) for the half-year ended Sept. 30, down 2 percent from A$1.07 billion a year earlier due to subdued market conditions and lower performance fees from its funds.
The result was above an estimate of a 6.6 percent decline in interim net profit to A$999 million from three analysts surveyed by Thomson Reuters I/B/E/S.
More than 40 per cent of its earnings were from its Australian businesses, up from 29 percent a year earlier.
Earnings from the banking and financial services division leapt 54 percent to A$261 million, largely due to a one-off asset sale but also thanks to growth in deposits and funds on its wealth management platform.
"We've seen strong growth taking place across this business in recent years," Moore said.
Earnings at Macquarie's securities division - which is focused heavily on China, Hong Kong and Taiwan - fell 93 percent to A$18 million.
Macquarie said it would pay a partially-franked interim dividend of A$1.90 a share, up 19 percent from the prior year. Shares were trading 2 percent higher after the results were released, while the broader market was down 0.5 percent.
Macquarie reaffirmed its forecast that full-year earnings would be in line with last year's record A$2.06 billion. Gluskie, chief executive of fund manager Whitefield, said the results were a "minor positive".
Moore declined to comment on media reports Macquarie was a frontrunner to purchase Britain-based Green Investment Bank in a deal that could be valued at 2 billion pounds ($2.44 billion).
($1 = 1.3180 Australian dollars) ($1 = 0.8213 pounds)