Macquarie Group's cost-cutting efforts continue to chip away at the financier's expense base and provide a prop to its otherwise lacklustre profits.In an update on trading over the June 2012 quarter, Macquarie said operating expenses were around 10 per cent lower than for the same quarter of 2011. Over the year to March 2012 Macquarie said operating expenses fell eight per cent.Macquarie otherwise reiterated the careful - and conditional - outlook statement that it offered three months ago, which was that it expected an improved result in the year to March 2013, provided market conditions are not worse than in 2012.The data on operating expenses was one of the few real crumbs provided by the group in a trading update laden with caution over the state of global markets, and containing a reiteration of the group's strategic position.Macquarie did provide an updated estimated on its capital "surplus" at June 2012. On a "harmonised Basel III" basis, this is A$3.5 billion, which is unchanged from the estimate of this surplus three months before (though estimates of the surplus vary, depending on the regulatory criteria applied).On the other hand, Macquarie is now roughly half way through a planned $800 million buy back of shares. The bank has so far bought $120 million of shares on the market, out of $500 million it plans to buy.The group is also buying around $300 million in shares to satisfy share issues to staff and its dividend reinvestment plan.Yesterday's annual general meeting also saw an agreement to a more extensive share buyback, if the board opts to do this.The group adopted a more cautious tone yesterday on the outlook for its Macquarie Securities division (which reported a full-year loss of $194 million of which all but $19 million was incurred in the second half).Macquarie said that "if current market conditions persist… Macquarie Securities is unlikely to be profitable [in 2013]." Asked about the options for this business, at a media briefing yesterday, the bank's managing director, Nicholas Moore, used a climate analogy."It feels a bit like having a drought here in Australia. You know the drought will turn, but you don't know when."We know it [the equities market] will come back, but we don't know when."When you look at the [fund managers'] allocations, they are all going one way and that's not the equities way. Our view is that it will turn."Kevin McCann, chair of the board of Macquarie, answered a question on the case for a radical restructuring of the bank.The bank was looking instead for "platform efficiencies", he said."We're seeking to adapt the business to market circumstances. Four of the businesses are going very well."