(Reuters) -Australia's Macquarie on Friday posted a better-than-expected 5.5% rise in annual profit due to gains by its asset management and banking units, sending its shares nearly 4% higher.

The Sydney-headquartered firm reported A$3.72 billion ($2.38 billion) in profit attributable for the year ended March 31, slightly higher than a Visible Alpha consensus of A$3.70 billion.

The stock was on track to record its highest level since March 28, while the broader benchmark index was largely flat at 0029 GMT.

The company's asset management division saw annual net profit surge 33% to A$1.61 billion ($1.03 billion), lifted by higher performance fees and a gain from the sale of its Rotorcraft helicopter leasing unit.

The banking and financial services arm logged an 11% profit rise to A$1.38 billion, lifted by lower costs from a streamlined, digitised workforce.

Higher net interest income from growth in average loan and deposit portfolios was partly offset by margin pressure amid stiff lending competition and an ongoing shift in portfolio mix, Macquarie said.

Macquarie's strong earnings come at a time when Australian banks have seen intense mortgage competition and a shift toward lower-margin deposit products, which is squeezing profit margins. Volatility in global markets stemming from U.S. President Donald Trump's tariffs, and an ensuing global trade war, has also added pressure.

"Against a backdrop of ongoing market and economic uncertainty, Macquarie's client franchises remained resilient over the past year," managing director and CEO Shemara Wikramanayake said.

Macquarie added it expects a slight uptick in short-term commodities income.

"Guidance looks slightly soft relative to market expectations," analysts at Citi said in a note.

The company, which sold its U.S. and European public asset units to Nomura in April, reported A$941 billion in assets under management at year-end, slightly up from A$938.3 billion a year earlier.

Its commodities and global markets arm, however, posted a 12% drop in annual profit to A$2.83 billion, hit by weaker client hedging activity amid muted conditions across key commodity markets.

It declared a final dividend of A$3.90 per share, a tad higher than A$3.85 per share last year.

($1 = 1.5630 Australian dollars)