After reporting very strong earnings growth for the year to March, Macquarie Group has come back to earth in the first quarter of its new financial year. Macquarie reported yesterday that profit (based on management accounts before corporate costs, tax and profit share) for the June quarter was down on both the previous corresponding period and the prior quarter.The group's annuity businesses (Macquarie Funds, Corporate and Asset Finance, and Banking and Financial Services) were "broadly in line" with the previous corresponding period and the prior quarter.The capital markets businesses (Macquarie Securities, Macquarie Capital and Fixed Income Currencies and Commodities) were down.Macquarie Group chief executive Nicholas Moore said that low volatility in markets affected Macquarie Securities, which experienced reduced client activity, particularly in Asia.The group has changed its full year outlook for Macquarie Securities. Earlier this year it said Macquarie Securities' full year result for 2014/15 would be up on the previous year. Now it expects Macquarie Securities' profit to be down over the full year.Guidance for the other five divisions remained unchanged.Another soft spot was Macquarie Funds, whose assets under management fell by 4.6 per cent to A$405 billion during the June quarter. This was related to a transfer of assets following an acquisition in the US.The Corporate and Asset Finance division's asset and loan portfolio increased by $600 million to $26.1 billion during the quarter.In the Banking and Financial Services division the Australian mortgage portfolio grew nine per cent to $18.5 billion during the quarter and retail deposits were up by four per cent to $34.7 billion.The division became the credit card issuing partner for Woolworths, taking over a card portfolio worth $350 million.