News: MQG UPDATE 1-Macquarie's quarterly profit helped by commodities business, outlook cautious

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Feb 7 (Reuters) - Australia's Macquarie Group Ltd (MQG) on Tuesday posted substantially higher profit contribution from its commodities business in the third quarter, but said that market conditions make forecasting short-term outlook difficult.

The diversified bank said its Commodities and Global Markets (CGM) arm - the top profit generating business - benefited particularly in global gas & power and oil products, owing to volatile market conditions.

The company, which does not disclose profit figures in quarterly updates, said strong results in CGM business was partially offset by a lower level of realisations and lower fee and commission income in Macquarie Capital.

Combined quarterly net profit contribution of Macquarie's annuity-style businesses was substantially down in the prior period mainly due to the absence of material gains in green energy sector asset realisations made in first half.

"We continue to maintain a cautious stance, with a conservative approach to capital, funding and liquidity that positions us well to respond to the current environment," the group said.

Macquarie said its short-term outlook could be influenced by the global economic conditions, inflation and interest rates, and significant volatility events.