MACQUARIE GROUP LIMITED Disclaimer
The material in this presentation has been prepared by Macquarie Group Limited ABN 94 122 169 279 ("MGL") and is general background information about Macquarie's ("MGL and its subsidiaries") activities current as at the date of this presentation. This information is given in summary form and does not purport to be complete. The material contained in this presentation may include information derived from publicly available sources that have not been independently verified. Information in this presentation should not be considered as advice or a recommendation to investors or potential investors in relation to holding, purchasing or selling securities or other financial products or instruments and does not take into account your particular investment objectives, financial situation or needs. Before acting on any information you should consider the appropriateness of the information having regard to these matters, any relevant offer document and in particular, you should seek independent financial advice. No representation or warranty is made as to the accuracy, completeness or reliability of the information. All securities and financial product or instrument transactions involve risks, which include (among others) the risk of adverse or unanticipated market, financial or political developments and, in international transactions, currency risk.
This presentation may contain forward looking statements - that is, statements related to future, not past, events or other matters - including, without limitation, statements regarding our intent, belief or current expectations with respect to Macquarie's businesses and operations, market conditions, results of operation and financial condition, capital adequacy, provisions for impairments and risk management practices. Readers are cautioned not to place undue reliance on these forward looking statements. Macquarie does not undertake any obligation to publicly release the result of any revisions to these forward looking statements or to otherwise update any forward looking statements, whether as a result of new information, future events or otherwise, after the date of this presentation. Actual results may vary in a materially positive or negative manner. Forward looking statements and hypothetical examples are subject to uncertainty and contingencies outside Macquarie's control. Past performance is not a reliable indication of future performance.
Unless otherwise specified all information is for the year ended 31 March 2024.
Certain financial information in this presentation is prepared on a different basis to the Financial Report within the Macquarie Group Financial Report ("the Financial Report") for the year ended 31 March 2024, which is prepared in accordance with Australian Accounting Standards. Where financial information presented within this presentation does not comply with Australian Accounting Standards, a reconciliation to the statutory information is provided.
This presentation provides further detail in relation to key elements of Macquarie's financial performance and financial position. It also provides an analysis of the funding profile of Macquarie because maintaining the structural integrity of Macquarie's balance sheet requires active management of both asset and liability portfolios. Active management of the funded balance sheet enables the Group to strengthen its liquidity and funding position.
Any additional financial information in this presentation which is not included in the Financial Report was not subject to independent audit or review by PricewaterhouseCoopers. Numbers are subject to rounding and may not fully reconcile.
Other than Macquarie Bank Limited ABN 46 008 583 542 ("MBL"), any Macquarie group entity noted in this presentation is not an authorised deposit-taking institution for the purposes of the Banking Act 1959 (Cth). That entity's obligations do not represent deposits or other liabilities of MBL and MBL does not guarantee or otherwise provide assurance in respect of the obligations of that entity. Any investments are subject to investment risk including possible delays in repayment and loss of income and principal invested.
© Macquarie Group Limited | 2 |
Agenda
01 | 02 | 03 |
Introduction | Overview of | Result Analysis |
Result | and Financial | |
Management | ||
04 | 05 |
Outlook Appendices
IntroductionOverview of ResultResult Analysis and Financial ManagementOutlookAppendices
About Macquarie ~45% | ~55% |
Annuity-style activities | Net Profit Contribution | Markets-facing activities | Net Profit Contribution |
BFS | MAM | CGM | |||||||
Banking and Financial Services Macquarie Asset Management | Commodities and Global Markets |
MacCap
Macquarie Capital
- Macquarie's retail banking and financial services business with BFS deposits1 of $A142.7b2, loan portfolio3 of $A140.2b2 and funds on platform of $A141.8b2
- Provides a diverse range of personal banking, wealth management and business banking products and services to retail clients, advisers, brokers and business clients
- $A938.3b4 of assets under management, investing to deliver positive outcomes for our clients, portfolio companies and communities
- Provides investment solutions to clients across a range of capabilities, including real assets, real estate, credit, equities & multi- asset and secondaries
Global business offering capital and financing, risk management, market access, physical execution and logistics solutions to its diverse client base across Commodities, Financial Markets and Asset Finance
• Capital and financing: provides clients | • Market access: helping clients |
with financing and asset management | access assets and prices via |
solutions across the capital structure | liquidity and electronic markets |
• Risk management: helping clients | globally |
manage exposure to price changes in | • Physical execution and logistics: |
commodities, currencies, credit and | supporting clients with access to |
equity markets | physical commodities and |
facilitating their transport from | |
production to consumption |
CGM's deep expertise and physical presence allow us to optimise how we manage both our clients' risk exposures and trading opportunities we see which are conducted within Macquarie's strong internal risk management framework
Global capability in:
- Advisory and capital raising services, providing clients with specialist expertise and flexible capital solutions across a range of sectors
- Specialist investing across private credit, private equity, real estate, growth equity, venture capital and in infrastructure and energy projects and companies
- Equities brokerage, providing clients with access to equity research, sales, execution capabilities and corporate access
FY24 Net Profit Contribution
BFS | ~19% | MAM | ~18% | CGM | ~8% CGM | ~39% |
MacCap | ~16%
Risk Management Group
An independent and centralised function responsible for independent and objective review and challenge, oversight, monitoring and reporting in relation to Macquarie's material risks.
Legal and Governance Group
Provides a full range of legal and corporate governance services, including strategic legal and governance advice and risk assessment on corporate transactions, treasury and funding, insurance, regulatory enquiries and litigation.
Financial Management Group
Responsible for capital, funding, liquidity, tax and strategic analysis and advice to support growth of the business. Ensures compliance with financial, regulatory and tax reporting obligations, as well as maintaining relationships with a range of significant external stakeholders.
Corporate Operations Group
Provides specialist services in technology, operations, human resources, workplace, data, digital, strategy, operational risk management, business resilience and global security, and the Macquarie Group Foundation.
Note: Where referenced in this document, net profit contribution is management accounting profit before unallocated corporate costs, profit share and income tax. 1. BFS deposits include home loan offset accounts. 2. As at 31 Mar 24. 3. The loan portfolio comprises home loans, loans to businesses, car loans and credit cards. 4. As at 31 Mar 24. MAM Private Markets Assets under Management (AUM) includes equity yet to deploy and equity committed to assets but not yet deployed.
© Macquarie Group Limited | 6 |
Introduction | Overview of Result | Result Analysis and Financial Management | Outlook | Appendices |
2H24 result: $A2,107m up 49% on 1H24; down 27% on 2H23
FY24 result: $A3,522m down 32% on FY23
2H24 | 1H24 | 2H24 v | FY24 | FY23 | FY24 v | |||||||
$Am | $Am | 1H24 | $Am | $Am | FY23 | |||||||
Net operating income | 8,977 | 7,910 | á | 13% | 16,887 | 19,122 | â | 12% | ||||
Total operating expenses | (6,142) | (5,919) | á | 4% | (12,061) (12,130) | â | 1% | |||||
Operating profit before income tax | 2,835 | 1,991 | á | 42% | 4,826 | 6,992 | â | 31% | ||||
Income tax expense | (704) | (587) | á | 20% | (1,291) | (1,824) | â | 29% | ||||
Effective tax rate1 (%) | 25.0 | 29.3 | 26.8 | 26.0 | ||||||||
(Profit)/loss attributable to non-controlling interests | (24) | 11 | (13) | 14 | ||||||||
Profit attributable to MGL shareholders | 2,107 | 1,415 | á | 49% | 3,522 | 5,182 | â | 32% | ||||
Annualised return on equity (%) | 12.9 | 8.7 | á | 48% | 10.8 | 16.9 | â | 36% | ||||
Basic earnings per share | $A5.47 | $A3.69 | á | 48% | $A9.17 | $A13.54 | â | 32% | ||||
Dividend per ordinary share | $A3.85 | $A2.55 | á | 51% | $A6.40 | $A7.50 | â | 15% | ||||
1. Calculation of the effective tax rate is after adjusting for the impact of non-controlling interests.
© Macquarie Group Limited | 7 |
Introduction | Overview of Result | Result Analysis and Financial Management | Outlook | Appendices |
2H24 net profit contribution from Operating Groups $A3,855m up 35% on 1H24; down 33% on 2H23
Annuity-style activitiesá 33% Markets-facing activitiesá 37%
$A1,718m | â | 8% | $A2,137m | â 45% |
ON 1H24 | ON 1H24 | |||
ON 2H23 | ON 2H23 |
Non-Banking Group
Macquarie Asset Management (MAM) | á | Macquarie Capital (MacCap) | |
á | Increase primarily driven by higher performance fees and asset realisations in | Higher investment-related income primarily driven by asset realisations and lower | |
on 1H24 | green investments. Base fees broadly in line with the prior period | on 1H24 | credit provisions. Advisory fee income down partially offset by higher capital |
markets fee income. Lower operating expenses in the current period |
Banking Group
â
on 1H24
á
on 1H24
Banking and Financial Services (BFS)
Margin compression resulting in lower net interest income; partially offset by growth in the loan portfolio and BFS deposits and credit impairment reversals primarily reflecting an improvement in the macroeconomic outlook
Commodities and Global Markets1 (CGM)
Increased contribution from leasing, lending and financing activities across Asset Finance and Commodities primarily in the technology, energy and resources sectors
á
on 1H24
Commodities and Global Markets1 (CGM)
Improved contribution from inventory management and trading, primarily in North American Gas and Power and increased client activity across financial markets, partially offset by reduced contribution from risk management in EMEA Gas and Power driven by reduced volatility
1. Certain assets of the Financial Markets business, certain activities of the Commodity Markets and Finance business, and some other less financially significant activities are undertaken from within the Non-Banking Group.
© Macquarie Group Limited | 8 |
Introduction | Overview of Result | Result Analysis and Financial Management | Outlook | Appendices |
FY24 net profit contribution from Operating Groups $A6,713m down 35% on FY23
Annuity-style activitiesMarkets-facing activities
$A3,014m | â 27% | $A3,699m | â 40% | ||
ON FY23 | ON FY23 | ||||
Non-Banking Group | |||||
Macquarie Asset Management (MAM) | á | Macquarie Capital (MacCap) | |||
â | Decrease primarily driven by lower asset realisations in green investments and | Higher investment-related income driven by growth in the private credit portfolio, | |||
on FY23 | increased net expenditure in investments in green energy portfolio companies | on FY23 | lower credit provisions and net reversals of impairments, partially offset by lower | ||
operating on a standalone basis. Base and performance fees broadly in line with | net gains on investments including the non-recurrence of material asset | ||||
the prior year | realisations. Advisory fee income down partially offset by higher brokerage | ||||
income. Higher operating expenses in the current year | |||||
Banking Group | |||||
Banking and Financial Services (BFS) | Commodities and Global Markets1 (CGM) |
- Growth in the loan portfolio and BFS deposits, and credit impairment reversals primarily reflecting an improvement in the macroeconomic outlook; partially
on FY23 | offset by margin compression, higher employment expenses and increased |
technology investment to support portfolio growth, compliance and regulatory | |
requirements | |
â | Commodities and Global Markets1 (CGM) |
Decreased contribution from Asset Finance and Commodities driven by | |
on FY23 | |
increased operating expenses and specific credits in energy and resource | |
sectors, respectively |
â
on FY23
Inventory management and trading income substantially lower from a strong prior year in North American Gas and Power. Decreased contribution from Commodities risk management, primarily in EMEA Gas and Power, and Resources due to lower client hedging as volatility and price movements stabilised across commodity markets following record highs in the prior year. Increased contribution from Financial Markets with continued strong performance across major products and markets, particularly in foreign exchange and interest rate products and an increased contribution from the Futures business
1. Certain assets of the Financial Markets business, certain activities of the Commodity Markets and Finance business, and some other less financially significant activities are undertaken from within the Non-Banking Group.
© Macquarie Group Limited | 9 |
Introduction | Overview of Result | Result Analysis and Financial Management | Outlook | Appendices |
Assets under management of $A938.3b
AUM increased 7% from $A878.6b1 as at 31 Mar 23
Increase due to favourable market movements, investments made by Private Markets-managed funds and favourable foreign exchange movements, partially offset by assets no longer managed as a result of reduction of co-investment management rights
$Ab
1,000
900
800
700
600
500
400
300
200
100
-
Mar 20 | Mar 21 | Mar 22 | Mar 23 | Mar 24 | ||||||||
Fixed Income | Infrastructure Equity | Equities | Other2 | Real Estate | ||||||||
1. MAM Private Markets Assets under Management (AUM) includes equity yet to deploy and equity committed to assets but not yet deployed. 2. Includes equity yet to deploy and equity committed to assets but not yet deployed.
© Macquarie Group Limited | 10 |
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Macquarie Group Ltd. published this content on 03 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 02 May 2024 22:38:10 UTC.
