Macquarie Group, Ltd. · ASX:MQG
Macquarie — Investor Day (February 2020)
81 slides from Macquarie's investor day presentation, Feb 11, 2020
Slide 1: Operational Briefing
Operational Briefing Presentation to Investors and Analysts 11 February 2020
Slide 2: Disclaimer
Macquarie I 2020 Operational Briefing I macquarie.com Update since the interim result Risk Management Group The Banking Group Banking and Financial Services Commodities and Global Markets Glossary Disclaimer The material in this presentation has been prepared by Macquarie Group Limited ABN 94 122 16
Slide 3: Introduction
01 Introduction Sam Dobson Head of Investor Relations
Slide 4: Agenda
Agenda 10:00 Introduction Sam Dobson 10:05 Update since the interim result Shemara Wikramanayake 10:30 Risk Management Group Patrick Upfold 10:40 The Banking Group Mary Reemst 10:50 Banking and Financial Services Greg Ward 11:25 Commodities and Global Markets Nicholas O’Kane MACQUARIE 2019
Slide 5: Update since the interim result
02 Update since the interim result Shemara Wikramanayake Managing Director and Chief Executive Officer
Slide 6: About Macquarie
Macquarie I 2020 Operational Briefing I macquarie.com Update since the interim result Risk Management Group The Banking Group Banking and Financial Services Commodities and Global Markets Glossary About Macquarie Annuity-style activities Markets-facing activities Annuity-style Net Profit Contributio
Slide 7: 3Q20 Overview
Macquarie I 2020 Operational Briefing I macquarie.com Update since the interim result Risk Management Group The Banking Group Banking and Financial Services Commodities and Global Markets Glossary 3Q20 • Satisfactory trading conditions in 3Q20 across the Group • Macquarie's annuity-style businesses'
Slide 8: 3Q20 Overview: Macquarie Asset Management and Banking and Financial Services
Macquarie I 2020 Operational Briefing I macquarie.com Update since the interim result Risk Management Group The Banking Group Banking and Financial Services Commodities and Global Markets Glossary Macquarie Asset Management Banking and Financial Services 3Q20 1Q20 39% 1H20 contribution1 13% 1H20 con
Slide 9: 3Q20 Overview: Commodities and Global Markets and Macquarie Capital
Macquarie I 2020 Operational Briefing I macquarie.com Update since the interim result Risk Management Group The Banking Group Banking and Financial Services Commodities and Global Markets Glossary Commodities and Global Markets Macquarie Capital 1Q20 3Q20 40% 1H20 contribution1 • Strong contribution
Slide 10: Macquarie's global footprint
Macquarie I 2020 Operational Briefing I macquarie.com Update since the interim result Risk Management Group The Banking Group Banking and Financial Services Commodities and Global Markets Glossary Macquarie's global footprint 2 Total staff1 Americas EMEA Asia Australia Staff Staff Staff Staff 15,760
Slide 11: Funded balance sheet remains strong
Macquarie I 2020 Operational Briefing I macquarie.com Update since the interim result Risk Management Group The Banking Group Banking and Financial Services Commodities and Global Markets Glossary Funded balance sheet remains strong Term liabilities exceed term assets 31 Dec 2018 30 Sep 2019 31 Dec
Slide 12: Basel III capital position
Macquarie I 2020 Operational Briefing I macquarie.com Update since the interim result Risk Management Group The Banking Group Banking and Financial Services Commodities and Global Markets Glossary Basel III capital position APRA Basel III Group capital at Dec 19 of $A23.6b; Group capital surplus of
Slide 13: Capital management update
Macquarie I 2020 Operational Briefing I macquarie.com Update since the interim result Risk Management Group The Banking Group Banking and Financial Services Commodities and Global Markets Glossary Capital management Additional Tier 1 Capital update • On 30 Jan 2020, MBL announced that it intends to
Slide 14: Business capital requirements
Macquarie I 2020 Operational Briefing I macquarie.com Update since the interim result Risk Management Group The Banking Group Banking and Financial Services Commodities and Global Markets Glossary Business capital requirements1 $A2.0b growth 3Q20 KEY DRIVERS MAM $Ab • Increased requirements driven b
Slide 15: Strong regulatory ratios
Macquarie I 2020 Operational Briefing I macquarie.com Update since the interim result Risk Management Group The Banking Group Banking and Financial Services Commodities and Global Markets Glossary Strong regulatory ratios Bank Group (Dec 19) 17.5% 7.5% 190.0% 115.0% 14.2% 5.9% 14.0% 6.0% 160.0% 110.
Slide 16: Regulatory update
Macquarie I 2020 Operational Briefing I macquarie.com Update since the interim result Risk Management Group The Banking Group Banking and Financial Services Commodities and Global Markets Glossary Australia • APRA is currently undertaking regulatory reviews in a number of areas, including: – Finalis
Slide 17: Regulatory update
Macquarie I 2020 Operational Briefing I macquarie.com Update since the interim result Risk Management Group The Banking Group Banking and Financial Services Commodities and Global Markets Glossary Brexit Regulatory Regulatory • As previously stated, Macquarie does not believe that the UK’s withdrawa
Slide 18: Factors impacting short-term outlook
Macquarie I 2020 Operational Briefing I macquarie.com Update since the interim result Risk Management Group The Banking Group Banking and Financial Services Commodities and Global Markets Glossary Factors impacting short-term outlook Annuity-style businesses Markets-facing businesses Non-Banking Gro
Slide 19: Short-term outlook
Macquarie I 2020 Operational Briefing I macquarie.com Update since the interim result Risk Management Group The Banking Group Banking and Financial Services Commodities and Global Markets Glossary Short-term Short-term • While the impact of future market conditions makes forecasting difficult, we co
Slide 20: Medium-term
Macquarie I 2020 Operational Briefing I macquarie.com Update since the interim result Risk Management Group The Banking Group Banking and Financial Services Commodities and Global Markets Glossary Medium-term Medium-term • Macquarie remains well-positioned to deliver superior performance in the medi
Slide 21: Medium term
Macquarie I 2020 Operational Briefing I macquarie.com Update since the interim result Risk Management Group The Banking Group Banking and Financial Services Commodities and Global Markets Glossary Medium term Annuity-style businesses Markets-facing businesses Non-Banking Group Non-Banking Group Macq
Slide 22: Approximate business Basel III capital and ROE
Macquarie I 2020 Operational Briefing I macquarie.com Update since the interim result Risk Management Group The Banking Group Banking and Financial Services Commodities and Global Markets Glossary Approximate business As at 30 Sep 2019 Basel III APRA Basel III Capital1 Approx. 1H20 Return on Ordinar
Slide 23: Risk Management Group
03 Risk Management Group Patrick Upfold Group Head
Slide 24: Macquarie's approach to risk management
Macquarie I 2020 Operational Briefing I macquarie.com Update since the interim result Risk Management Group The Banking Group Banking and Financial Services Commodities and Global Markets Glossary Macquarie’s approach to risk management Strong focus on business accountability and risk ownership Stab
Slide 25: RMG supports Macquarie's strong risk culture
Macquarie I 2020 Operational Briefing I macquarie.com Update since the interim result Risk Management Group The Banking Group Banking and Financial Services Commodities and Global Markets Glossary RMG supports Macquarie’s strong risk culture 1996 1998 Goals and Values Integrity Office established –
Slide 26: RMG divisions
Macquarie I 2020 Operational Briefing I macquarie.com Update since the interim result Risk Management Group The Banking Group Banking and Financial Services Commodities and Global Markets Glossary RMG divisions RMG’s specialist functional divisions together provide broad independent coverage of Macq
Slide 27: Our people
Macquarie I 2020 Operational Briefing I macquarie.com Update since the interim result Risk Management Group The Banking Group Banking and Financial Services Commodities and Global Markets Glossary Our people RMG has grown in line with Macquarie’s global business mix and in response to the changing r
Slide 28: Risk governance
Macquarie I 2020 Operational Briefing I macquarie.com Update since the interim result Risk Management Group The Banking Group Banking and Financial Services Commodities and Global Markets Glossary Risk governance Macquarie’s strong risk governance structure supports risk-based decision making and ov
Slide 29: Macquarie I 2020 Operational Briefing I macquarie.com Update since the interim result Risk Management
Macquarie I 2020 Operational Briefing I macquarie.com Update since the interim result Risk Management Group The Banking Group Banking and Financial Services Commodities and Global Markets Glossary 29
Slide 30: The Banking Group
04 The Banking Group Mary Reemst Macquarie Bank Limited Managing Director and Chief Executive Officer
Slide 31: Group structure
Macquarie I 2020 Operational Briefing I macquarie.com Update since the interim result Risk Management Group The Banking Group Banking and Financial Services Commodities and Global Markets Glossary Group structure The current structure allows the Bank and the Group to undertake a diverse range of bus
Slide 32: Regulatory framework
Macquarie I 2020 Operational Briefing I macquarie.com Update since the interim result Risk Management Group The Banking Group Banking and Financial Services Commodities and Global Markets Glossary Regulatory framework MBL is authorised by APRA as an ADI in Australia Additional regulatory focus on No
Slide 33: Governance structure
Macquarie I 2020 Operational Briefing I macquarie.com Update since the interim result Risk Management Group The Banking Group Banking and Financial Services Commodities and Global Markets Glossary Governance structure Separate MBL and MGL Boards and Executive Committees, with separate charters, meet
Slide 34: Funding and capital
Macquarie I 2020 Operational Briefing I macquarie.com Update since the interim result Risk Management Group The Banking Group Banking and Financial Services Commodities and Global Markets Glossary Funding and capital MBL S&P long-term rating upgraded to A+ from A on 11 Dec 2019 Term funding profile1
Slide 35: Benefits from diversification and group structure
Macquarie I 2020 Operational Briefing I macquarie.com Update since the interim result Risk Management Group The Banking Group Banking and Financial Services Commodities and Global Markets Glossary Benefits from diversification and group structure Macquarie’s international presence and business diver
Slide 36: Banking and Financial Services
05 Banking and Financial Services Greg Ward Group Head
Slide 37: Macquarie I 2020 Operational Briefing I macquarie.com Update since the interim result Risk Management
Macquarie I 2020 Operational Briefing I macquarie.com Update since the interim result Risk Management Group The Banking Group Banking and Financial Services Commodities and Global Markets Glossary 37
Slide 38: Banking and Financial Services
Macquarie I 2020 Operational Briefing I macquarie.com Update since the interim result Risk Management Group The Banking Group Banking and Financial Services Commodities and Global Markets Glossary Banking and Financial Services A technology-driven Australian retail bank and wealth manager BFS Highli
Slide 39: Evolution of Macquarie's retail banking business
Macquarie I 2020 Operational Briefing I macquarie.com Update since the interim result Risk Management Group The Banking Group Banking and Financial Services Commodities and Global Markets Glossary Evolution of Macquarie's retail banking business We’ve transformed to focus on our Australian retail ba
Slide 40: Focused on delivering exceptional client experiences
Macquarie I 2020 Operational Briefing I macquarie.com Update since the interim result Risk Management Group The Banking Group Banking and Financial Services Commodities and Global Markets Glossary Focused on delivering exceptional client experiences Client feedback shapes what we prioritise as a bus
Slide 41: We put client outcomes at the centre of our decision making
Macquarie I 2020 Operational Briefing I macquarie.com Update since the interim result Risk Management Group The Banking Group Banking and Financial Services Commodities and Global Markets Glossary We put client outcomes at the centre of our decision making Jul 2019 Sept 2017 Feb 2019 Moved ahead of
Slide 42: Our focus on client outcomes is enabled by our risk culture
Macquarie I 2020 Operational Briefing I macquarie.com Update since the interim result Risk Management Group The Banking Group Banking and Financial Services Commodities and Global Markets Glossary Our focus on client outcomes is enabled by our risk culture Comprehensive governance and accountability
Slide 43: We have simplified our operations
Macquarie I 2020 Operational Briefing I macquarie.com Update since the interim result Risk Management Group The Banking Group Banking and Financial Services Commodities and Global Markets Glossary We have simplified our operations Simplification across businesses, product offering and technology sys
Slide 44: Cost base has remained flat
Macquarie I 2020 Operational Briefing I macquarie.com Update since the interim result Risk Management Group The Banking Group Banking and Financial Services Commodities and Global Markets Glossary Cost base has remained flat Costs have remained broadly flat despite significant volume growth in core
Slide 45: Our technology journey is delivering scale, efficiencies and exceptional client experiences
Macquarie I 2020 Operational Briefing I macquarie.com Update since the interim result Risk Management Group The Banking Group Banking and Financial Services Commodities and Global Markets Glossary Our technology journey is delivering scale, efficiencies and exceptional client experiences BFS technol
Slide 46: Bringing best in class technology to banking
Macquarie I 2020 Operational Briefing I macquarie.com Update since the interim result Risk Management Group The Banking Group Banking and Financial Services Commodities and Global Markets Glossary Bringing best in class technology to banking Our multi cloud platform and system architecture allows us
Slide 47: Three business channels powered by specialist teams
Macquarie I 2020 Operational Briefing I macquarie.com Update since the interim result Risk Management Group The Banking Group Banking and Financial Services Commodities and Global Markets Glossary Three business channels powered by specialist teams BFS Group Head Greg Ward Personal Banking Business
Slide 48: Home loans
Macquarie I 2020 Operational Briefing I macquarie.com Update since the interim result Risk Management Group The Banking Group Banking and Financial Services Commodities and Global Markets Glossary Home loans Scalable business centred around the client experience Home loans funds under management2 ($
Slide 49: Home loans – delivering sustainable growth
Macquarie I 2020 Operational Briefing I macquarie.com Update since the interim result Risk Management Group The Banking Group Banking and Financial Services Commodities and Global Markets Glossary Home loans – delivering sustainable growth We’ve grown market share and volumes While maintaining appro
Slide 50: Home loans – prudent lending standards
Macquarie I 2020 Operational Briefing I macquarie.com Update since the interim result Risk Management Group The Banking Group Banking and Financial Services Commodities and Global Markets Glossary Home loans – prudent lending standards Loan to value ratio1 (by flow %) 90+ day arrears by origination
Slide 51: Home loans – prudent portfolio management
Macquarie I 2020 Operational Briefing I macquarie.com Update since the interim result Risk Management Group The Banking Group Banking and Financial Services Commodities and Global Markets Glossary Home loans – prudent portfolio management Repayment split 1 (by flow %) Loan size at origination (# of
Slide 52: Business Banking
Macquarie I 2020 Operational Briefing I macquarie.com Update since the interim result Risk Management Group The Banking Group Banking and Financial Services Commodities and Global Markets Glossary Business Banking Developing deep industry knowledge, building trust and long term relationships Strateg
Slide 53: Business deposits – integration delivering operational efficiency
Macquarie I 2020 Operational Briefing I macquarie.com Update since the interim result Risk Management Group The Banking Group Banking and Financial Services Commodities and Global Markets Glossary Business deposits – integration delivering operational efficiency Software integration Deft payment pla
Slide 54: Business lending – evolving portfolio dynamics
Macquarie I 2020 Operational Briefing I macquarie.com Update since the interim result Risk Management Group The Banking Group Banking and Financial Services Commodities and Global Markets Glossary Business lending – evolving portfolio dynamics Business lending realised losses (% on average business
Slide 55: Vehicle Finance
Macquarie I 2020 Operational Briefing I macquarie.com Update since the interim result Risk Management Group The Banking Group Banking and Financial Services Commodities and Global Markets Glossary Vehicle Finance Supporting SMEs and consumers with secured vehicle finance Key highlights Total Vehicle
Slide 56: Wealth solutions
Macquarie I 2020 Operational Briefing I macquarie.com Update since the interim result Risk Management Group The Banking Group Banking and Financial Services Commodities and Global Markets Glossary Wealth solutions Committed to providing the best digital wealth experience for advisers and clients Foc
Slide 57: Wrap Evolution
Macquarie I 2020 Operational Briefing I macquarie.com Update since the interim result Risk Management Group The Banking Group Banking and Financial Services Commodities and Global Markets Glossary Wrap Evolution We have achieved platform scale and are now focused on sustainable growth in the adviser
Slide 58: Private Bank transformation
Macquarie I 2020 Operational Briefing I macquarie.com Update since the interim result Risk Management Group The Banking Group Banking and Financial Services Commodities and Global Markets Glossary Private Bank transformation We have combined our Private Bank and Private Key highlights Wealth busines
Slide 59: Well positioned for the future
Macquarie I 2020 Operational Briefing I macquarie.com Update since the interim result Risk Management Group The Banking Group Banking and Financial Services Commodities and Global Markets Glossary Well positioned for the future Led by our commitment to doing business the right way Exceptional Excell
Slide 60: Commodities and Global Markets
06 Commodities and Global Markets Nicholas O’Kane Group Head
Slide 61: Macquarie I 2020 Operational Briefing I macquarie.com Update since the interim result Risk Management
Macquarie I 2020 Operational Briefing I macquarie.com Update since the interim result Risk Management Group The Banking Group Banking and Financial Services Commodities and Global Markets Glossary 61
Slide 62: CGM is a client focused business
Macquarie I 2020 Operational Briefing I macquarie.com Update since the interim result Risk Management Group The Banking Group Banking and Financial Services Commodities and Global Markets Glossary CGM is a client focused business Risk Deep Specialised Diverse management longstanding expertise of our
Slide 63: Deep, longstanding client relationships
Macquarie I 2020 Operational Briefing I macquarie.com Update since the interim result Risk Management Group The Banking Group Banking and Financial Services Commodities and Global Markets Glossary Deep, longstanding client relationships Investment in long-term relationships underpins everything we d
Slide 64: Platform continues to evolve according to client needs
Macquarie I 2020 Operational Briefing I macquarie.com Update since the interim result Risk Management Group The Banking Group Banking and Financial Services Commodities and Global Markets Glossary Platform continues to evolve according to client needs We evolve the platform into adjacencies utilisin
Slide 65: We put clients at the forefront of our portfolio
Macquarie I 2020 Operational Briefing I macquarie.com Update since the interim result Risk Management Group The Banking Group Banking and Financial Services Commodities and Global Markets Glossary We put clients at the forefront of our portfolio We are where our clients need us to be, offering deep
Slide 66: Strong, stable earnings
Macquarie I 2020 Operational Briefing I macquarie.com Update since the interim result Risk Management Group The Banking Group Banking and Financial Services Commodities and Global Markets Glossary Strong, stable earnings Our platform diversity drives earnings stability and de-risks the portfolio 65%
Slide 67: Risk management is core to everything we do
Macquarie I 2020 Operational Briefing I macquarie.com Update since the interim result Risk Management Group The Banking Group Banking and Financial Services Commodities and Global Markets Glossary Risk management is core to everything we do Risk is owned by the business and governed by Macquarie’s r
Slide 68: North American Power, Gas & Emissions
North American Power, Gas & Emissions Cindy Khek Co-Head of North American Power, Gas & Emissions MACQUARIE 2020
Slide 69: Growth has largely been organic with adjacent acquisition
Macquarie I 2020 Operational Briefing I macquarie.com Update since the interim result Risk Management Group The Banking Group Banking and Financial Services Commodities and Global Markets Glossary Growth has largely been organic with adjacent acquisition 15+ years providing clients with access to No
Slide 70: What differentiates Macquarie
Macquarie I 2020 Operational Briefing I macquarie.com Update since the interim result Risk Management Group The Banking Group Banking and Financial Services Commodities and Global Markets Glossary What differentiates Macquarie Our extensive physical presence gives us valuable insight into supply/dem
Slide 71: A rapidly changing market presents opportunities
Macquarie I 2020 Operational Briefing I macquarie.com Update since the interim result Risk Management Group The Banking Group Banking and Financial Services Commodities and Global Markets Glossary A rapidly changing market presents opportunities Production basins, infrastructure, and consumption pat
Slide 72: Fixed Income and Currencies
Fixed Income and Currencies Simon Wright Division Head, Fixed Income and Currencies MACQUARIE 2020
Slide 73: Fixed Income and Currencies
Macquarie I 2020 Operational Briefing I macquarie.com Update since the interim result Risk Management Group The Banking Group Banking and Financial Services Commodities and Global Markets Glossary Fixed Income and Currencies A client-led business model for 30+ years Coverage Clients Deep experience
Slide 74: Growth through expanding expertise and entering new markets
Macquarie I 2020 Operational Briefing I macquarie.com Update since the interim result Risk Management Group The Banking Group Banking and Financial Services Commodities and Global Markets Glossary Growth through expanding expertise and entering new markets Focused on delivering exceptional client se
Slide 75: What's next?
What’s next? Nicholas O’Kane Head of Commodities and Global Markets MACQUARIE 2020
Slide 76: Attuned to evolving market opportunities
Macquarie I 2020 Operational Briefing I macquarie.com Update since the interim result Risk Management Group The Banking Group Banking and Financial Services Commodities and Global Markets Glossary Attuned to evolving market opportunities We go where our clients want us to be, supporting new areas of
Slide 77: Upside
Macquarie I 2020 Operational Briefing I macquarie.com Update since the interim result Risk Management Group The Banking Group Banking and Financial Services Commodities and Global Markets Glossary Earnings certainty, plus well-positioned to capitalise on growth opportunities 65% 60-70% Upside of the
Slide 78: Glossary
MucpHa ft el ee Glossary
Slide 79: Glossary
Macquarie I 2020 Operational Briefing I macquarie.com Update since the interim result Risk Management Group The Banking Group Banking and Financial Services Commodities and Global Markets Glossary Glossary 1H20 First Half ended 30 Sep 2019 CMA Cash Management Account 1Q20 First Quarter ended 30 Jun
Slide 80: Glossary
Macquarie I 2020 Operational Briefing I macquarie.com Update since the interim result Risk Management Group The Banking Group Banking and Financial Services Commodities and Global Markets Glossary Glossary GIFII Macquarie Global Infrastructure Fund 2 NPAT Net Profit After Tax GIG Green Investment Gr
Slide 81: Operational Briefing
Operational Briefing Presentation to Investors and Analysts 11 February 2020