(Reuters) -Australia's Macquarie Group said on Thursday trading conditions softened amid rising inflation and fears of a recession, although volatility in gas and energy markets helped drive small gains in its markets-facing businesses.
The financial conglomerate, which does not disclose profit figures in quarterly updates, said considering the current economic backdrop, it was maintaining a cautious stance and adopting a conservative approach to capital, funding and liquidity.
The Sydney-based firm benefited from a rally in oil and natural gas prices as Russia's invasion of Ukraine tightened an already under-supplied market in the recent past. However, the energy market is starting to shed some of those gains as fears of a global recession take hold.
Commodities and global markets business - the firm's main earnings engine - helped its market facing businesses post a quarterly net profit contribution that was slightly higher than last year, it said.
During its annual results in May, Macquarie had warned earnings would fall this year, without giving a specific financial forecast, and that income from its commodities unit would also be significantly lower.