Macquarie Group reported on Friday profit shortfalls of 24 per cent in fiscal 2012, underscoring cost-cutting measures that have so far resulted in the separation of more than a thousand workers from the company.

The financial group revealed that its net income in the first quarter of 2012 slowed down by nine per cent to $6.96 billion, coming from the $7.67 billion it recorded in the same period last year.

Those figures, Macquarie said, led to a full-year profit of only $730 million, shedding off about a quarter from the $956 million that the group had posted in the previous fiscal year.

The decline, according to the bank, was largely due to dwindling investment activities over the past 12 months, most of which were induced by apprehensions generated by the uncertain global economic environment.

"The year to 31 March 2012 saw substantially lower levels of client activity in many of our capital markets facing businesses caused by global economic uncertainty, which was partly offset by the ongoing growth of our annuity style businesses," Macquarie Group Chief Executive Nicholas Moore was reported by the Australian Associated Press (AAP) as saying in a statement.

Mr Moore, however, expressed optimism that that investment mood in the period ahead would be more conducive to business activities, which should give a platform for Macquarie to improve on its performance next year.

Macquarie increasing its profitability is not impossible so long as market conditions warrant it, the bank added.

Despite the income retreat, the Macquarie board gave its green light for an unfranked final dividend of $0.75 per share, pushing the full-year dividend to unfranked $1.40 as against to last year's $1.86.

Macquarie disclosed too that it now holds surplus capital of about $3.5 billion, which would enable the bank to launch shares buyback spree over the next six months, which roughly would cost the group some $500 million to scoop up 10 per cent of its shares.

Another $275 million will be allocated for an employee-retained equity plan and a dividend reinvestment plan, the bank said and as reported by The Australian on Friday.

The bank's capital surplus, however, failed to deter the company from rolling out its planned job cuts, which according to Macquarie Group Deputy Managing Director Greg Ward has so far reduced the bank's total workforce to 14,202 from 15,556.

Most of those axed were working for Macquarie's back office department, IT section, brokerage, investment banking and corporate divisions, Mr Ward said.

Up to 1,300 employees were given their walking papers over the past 12 months, he added, and most of them based on Macquarie's Australian operations.

"We always have natural attrition so it's not just termination and redundancies, there's always a level of staff turnover ... The size of our workforce is under review all the time. But I would think we should be pretty well close to where we think we should be," Mr Ward was quoted by The Australian as saying.