Macquarie Group says its market exposed businesses have experienced mixed trading conditions in recent months, sending its share price lower.
But the investment bank still expects to achieve profit growth in its 2013/14 fiscal year, which ends on March 31.
Macquarie shares dropped $2.10, or 3.8 per cent, to $53.52 after it said the profit contribution from its market exposed businesses was lower in the three months to December 31 than in the same period a year earlier.
Those businesses include its equities, currencies and commodities and corporate advisory operations.
"Since our result announcement for the first half of the 2014 financial year, market conditions continued to show signs of improvement," chief executive Nicholas Moore said in a statement.
"However, client activity remains subdued for some capital markets-facing businesses."
The company's annuity-style businesses - funds, banking and financial services and corporate finance - continued to perform well, with their profit contribution growing, Mr Moore said.
The group issued a similar outlook for the company as it did three months earlier, and said its tax rate in 2013/14 was expected to be in line with the previous year.
"We continue to expect an improved result for FY14 on FY13, provided market conditions for the remainder of FY14 are not worse than FY13," it said.
