Macquarie Group, Ltd. · ASX:MQG
Macquarie — Investor Day (February 2024)
59 slides from Macquarie's investor day presentation, Feb 13, 2024
Slide 1: 2024 Operational Briefing
2024 Operational Briefing Macquarie Group Limited 13 February 2024 © Macquarie Group Limited 1
Slide 2: Disclaimer
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
Slide 3: Agenda
Agenda 01 Introduction 02 3Q24 Trading 03 Macquarie in Update Asia 04 Banking and 05 Glossary Financial Services © Macquarie Group Limited 3
Slide 4: Introduction
01 Image here Introduction Sam Dobson Head of Investor Relations
Slide 5: 3Q24 Trading Update
02 Image here 3Q24 Trading Update Shemara Wikramanayake Managing Director and Chief Executive Officer
Slide 6: About Macquarie
Introduction 3Q24 Trading Update Macquarie in Asia BFS Glossary About Macquarie Annuity-style activities | Net Profit Contribution ~45% Markets-facing activities | Net Profit Contribution ~55% BFS MAM CGM MacCap Banking and Financial Services Macquarie Asset Management Commodities and Global Markets
Slide 7: 3Q24 Overview
Introduction 3Q24 Trading Update Macquarie in Asia BFS Glossary 3Q24 Overview ● FY24 year to date (YTD) NPAT substantially down on FY23 YTD which included an exceptional quarterly result in 3Q23, however underlying client franchises were resilient in ongoing uncertain conditions ● Macquarie's annuit
Slide 8: 3Q24 Overview: Annuity-style businesses
Introduction 3Q24 Trading Update Macquarie in Asia BFS Glossary 3Q24 Overview Annuity-style businesses Macquarie Asset Management Banking and Financial Services ~14% 1H24 contribution1 ~22% 1H24 contribution1 ● AUM2 of $A882.5b at Dec 23, down 1% on Sep 23 ● BFS deposits5 of $A135.6b at Dec 23, up 3
Slide 9: 3Q24 Overview: Markets-facing businesses
Introduction 3Q24 Trading Update Macquarie in Asia BFS Glossary 3Q24 Overview Markets-facing businesses Commodities and Global Markets Macquarie Capital ~49% 1H24 contribution1 ~15% 1H24 contribution1 ● Commodities contribution was down on the pcp, primarily due to decreased inventory ● 59 transacti
Slide 10: Macquarie's global footprint
Introduction 3Q24 Trading Update Macquarie in Asia BFS Glossary Macquarie's global footprint Total staff1 Americas EMEA Asia Australia2 Staff Staff Staff Staff 20,892 3,260 3,005 4,250 10,377 CANADA USA Orlando EUROPE Munich ASIA AUSTRALIA NEW ZEALAND Calgary Boise Philadelphia Amsterdam Paris Bangk
Slide 11: Funded balance sheet remains strong
Introduction 3Q24 Trading Update Macquarie in Asia BFS Glossary Funded balance sheet remains strong Term liabilities exceed term assets 30 Sep 23 31 Dec 23 $Ab $Ab 330 330 Commercial paper and certificates of 300 Commercial paper and certificates of deposit 12% 300 deposit 10% Total customer deposit
Slide 12: Capital management update
Introduction 3Q24 Trading Update Macquarie in Asia BFS Glossary Capital management update Group capital position as at 31 Dec 23 ● APRA Basel III Group capital surplus of $A9.7b1,2. Reduction in surplus of $A0.8b from Sep 23 predominantly driven by the 1H24 dividend, growth in BU requirements and th
Slide 13: Business capital requirements
Introduction 3Q24 Trading Update Macquarie in Asia BFS Glossary Business capital requirements1 3Q24 Key drivers MAM 3Q24 business capital requirement growth of $A0.6b excluding ● Net movements in fund FX movements co-investments, underwrites and divestments $Ab 30.0 BFS 0.4 0.6 $A28.1b 0.1 0.4 $A27.
Slide 14: Strong regulatory ratios
Introduction 3Q24 Trading Update Macquarie in Asia BFS Glossary Strong regulatory ratios Bank Group Level 2 Ratios (Dec 23) 250% 250% 8.0% 20.0% 18.2% 217%¹ 200% 200% 6.0% 5.7% 16.0% 150% 150% 5.0% 13.4% 12.0% 4.0% 113% 100% 100% 8.0% 2.0% 50% 50% 4.0% 0.0% 0.0% 0% 0% 2 CET1 ratio Leverage ratio LCR
Slide 15: Regulatory update
Introduction 3Q24 Trading Update Macquarie in Asia BFS Glossary Regulatory update Australia APRA has finalised or is in the process of implementing changes to a number of prudential standards. Macquarie notes the following key updates: ● On 31 Jan 24, APRA informed ADIs of its supervision priorities
Slide 16: Management update
Introduction 3Q24 Trading Update Macquarie in Asia BFS Glossary Management update Nicholas O’Kane Simon Wright After 28 years with Macquarie and five years as Group Head, Nicholas O’Kane has Simon Wright, currently Global Head of CGM’s Financial Markets division, becomes decided to step down as Head
Slide 17: Short-term outlook
Introduction 3Q24 Trading Update Macquarie in Asia BFS Glossary Short-term outlook Factors impacting short-term outlook Annuity-style businesses Markets-facing businesses Non-Banking Group Macquarie Asset Management (MAM) Macquarie Capital (MacCap) ● Base fees expected to be broadly in line Subject
Slide 18: Short-term outlook
Introduction 3Q24 Trading Update Macquarie in Asia BFS Glossary Short-term outlook The range of factors that may influence our short-term outlook include: ● Market conditions including: global economic conditions, inflation and interest rates, significant volatility events, and the impact of geopoli
Slide 19: Medium-term outlook
Introduction 3Q24 Trading Update Macquarie in Asia BFS Glossary Medium-term outlook Macquarie remains well-positioned to deliver superior performance in the medium term with its diverse business mix across annuity-style and markets-facing businesses Deep expertise across diverse sectors in major mar
Slide 20: Medium-term outlook
Introduction 3Q24 Trading Update Macquarie in Asia BFS Glossary Medium-term outlook Annuity-style businesses Markets-facing businesses Non-Banking Group Macquarie Asset Management (MAM) Macquarie Capital (MacCap) ● Well-positioned to respond to current market conditions and grow assets under ● Conti
Slide 21: Approximate business Basel III Capital and ROE
Introduction 3Q24 Trading Update Macquarie in Asia BFS Glossary Approximate business Basel III Capital and ROE 30 Sep 23 APRA Basel III Capital 1H24 Return on 17-year Average Return on Operating Group @ 10.5% ($Ab) Ordinary Equity1 Ordinary Equity2 Annuity-style businesses 11.8 Macquarie Asset Manag
Slide 22: Macquarie in Asia
03 Image here Macquarie in Asia Verena Lim Chief Executive Officer, Asia
Slide 23: Asia market opportunity
Introduction 3Q24 Trading Update Macquarie in Asia BFS Glossary Asia market opportunity Asia is a large, diverse and growing region with opportunities aligned to Macquarie’s expertise: Digital, Energy Transition and Infrastructure Strong market fundamentals Energy Digital Infrastructure 57% >50% Tra
Slide 24: Enabling Macquarie's continued growth
Introduction 3Q24 Trading Update Macquarie in Asia BFS Glossary Enabling Macquarie’s continued growth Asia has contributed ~10% of Asia capital has played an operating group income over outsized role in enabling the the past decade1 Group’s continued global growth Asia operating income Asia five-yea
Slide 25: Asia snapshot
Introduction 3Q24 Trading Update Macquarie in Asia BFS Glossary Asia snapshot 4,250 10% staff1 of income2 Operating in Asia since 1994 Well-established offices in key locations Regional presence and two major shared ~30 years Local service centres teams, insights, expertise Key region for $A51b 11 m
Slide 26: 30 years of growth, innovation and commitment in Asia
Introduction 3Q24 Trading Update Macquarie in Asia BFS Glossary 30 years of growth, innovation and commitment in Asia Establishing a presence in key markets Building local offerings Leveraging global expertise 2012 2016 2006 2005 Commodities Launched Macquarie 2020 1999 MKIF listed on KRX & LSE Stoc
Slide 27: Delivering on our strategy
Introduction 3Q24 Trading Update Macquarie in Asia BFS Glossary Delivering on our strategy 2019 Operational Briefing 2024 Update Harnessing Macquarie’s Managing one of the largest pan- Investing in green investment platforms Expanding Global Asia infrastructure platforms including Blueleaf Energy an
Slide 28: Shared Service Centres delivering critical services globally
Introduction 3Q24 Trading Update Macquarie in Asia BFS Glossary Shared Service Centres delivering critical services globally Powering our Delivering value Driving automation global operations for the Group Delivering innovative solutions through Human Centred Design, Data Analytics and process optim
Slide 29: Macquarie Group Foundation building a better future
Introduction 3Q24 Trading Update Macquarie in Asia BFS Glossary Macquarie Group Foundation building a better future $A570+ million $A52+ million total contribution since contributed in FY232 our inception in 19851 385 $A1 million in value contributed through skilled community organisations volunteer
Slide 30: CGM in Asia
Introduction 3Q24 Trading Update Macquarie in Asia BFS Glossary CGM in Asia Regional presence since 1994 14% of CGM operating income4 Client-led business providing capital and financing, risk management, market access, physical execution and logistics solutions to our diverse 381 Singapore global cl
Slide 31: CGM: Spotlight on Japan Power
Introduction 3Q24 Trading Update Macquarie in Asia BFS Glossary CGM: Spotlight on Japan Power Identifying a market Establishing our presence Leveraging a global opportunity in a unique market platform for growth CGM has well established Gas, Power and Emissions CGM has an established Financial Marke
Slide 32: Macquarie Capital in Asia
Introduction 3Q24 Trading Update Macquarie in Asia BFS Glossary Macquarie Capital in Asia Regional presence since 1994 ~$A8b primary capital raised in Providing integrated solutions to clients through our combined equity capital markets1 capabilities in advisory, capital markets, development and pri
Slide 33: MacCap: Spotlight on IEC balance sheet investing
Introduction 3Q24 Trading Update Macquarie in Asia BFS Glossary MacCap: Spotlight on IEC balance sheet investing Infrastructure and Energy Capital (IEC) invests Macquarie Capital’s balance sheet, leveraging our network and deep expertise. Our goal is to drive value for businesses transitioning from
Slide 34: MAM in Asia
Introduction 3Q24 Trading Update Macquarie in Asia BFS Glossary MAM in Asia Regional presence since 1995 $A51b assets under management Track record across infrastructure, green investments, real estate, fixed income, equities and multi-asset solutions 385 staff3 ~$A35b further ~66,000 employed capit
Slide 35: MAM: Spotlight on South Korea
Introduction 3Q24 Trading Update Macquarie in Asia BFS Glossary MAM: Spotlight on South Korea MAM is one of the largest foreign asset managers in Korea, having built a diversified, relationship- driven business over 24 years Transportation $A19b Investing in Korea’s digital future, including acquiri
Slide 36: What's next in Asia?
Introduction 3Q24 Trading Update Macquarie in Asia BFS Glossary What’s next in Asia? Connecting Asia Growing in high Leveraging global to the world potential markets expertise ● Build on track record and ● Build on existing strong local ● Merge global capabilities with established relationships to p
Slide 37: Banking and Financial Services
04 Image here Banking and Financial Services Greg Ward Head of Banking and Financial Services
Slide 38: Banking and Financial Services
Introduction 3Q24 Trading Update Macquarie in Asia BFS Glossary Banking and Financial Services We are a technology-driven Australian retail bank and wealth manager ~1.85m Offerings Expertise and awards customers ● Award winning digital banking offering Personal Banking 3,807 Retail banking products
Slide 39: Evolution of Macquarie's retail banking business
Introduction 3Q24 Trading Update Macquarie in Asia BFS Glossary Evolution of Macquarie’s retail banking business Early foundations Investing for growth 1980 1992 1995 1999 2007 2014 2015 2017 2019 2019-2023 2020 2022 2023 First First Introduced Macquarie Credit Core Banking Launched One- Private Ban
Slide 40: Strong and long-term leadership
Introduction 3Q24 Trading Update Macquarie in Asia BFS Glossary Strong and long-term leadership Personal Banking Deposits & Payments Ben Perham Olivia McArdle BFS Group Head 19 years at Macquarie 27 years at Macquarie Greg Ward 28 years at Macquarie Chief Information Officer Business Banking Richard
Slide 41: BFS then and now
Introduction 3Q24 Trading Update Macquarie in Asia BFS Glossary BFS then and now We have come a long way in the past decade, growing retail awareness and market share through our digital proposition Net profit contribution Home loan portfolio BFS deposits $Am FUM3 $Ab Market share4 FUM6 $Ab Market s
Slide 42: Market opportunity
Introduction 3Q24 Trading Update Macquarie in Asia BFS Glossary Market opportunity Strong runway for continued growth Opportunity areas $A2.2tn 6% CAGR Continued market share growth in home loans Enhanced digital first customer experiences, building towards Total home loans market in Australia1,2 gr
Slide 43: Our areas of focus
Introduction 3Q24 Trading Update Macquarie in Asia BFS Glossary Our areas of focus We are delivering for our customers with a strong focus on our key strategic priorities Net Promoter Scores (NPS)1 ● Seamless origination experiences 12 NPS Jul 23 NPS Dec 23 10 Deliver world class ● One-click account
Slide 44: Wealth Management
Introduction 3Q24 Trading Update Macquarie in Asia BFS Glossary Wealth Management We continue our focus on digitisation and investing in integrated wealth solutions for advisers & customers Wrap Wrap FUA and share of market net flows ● More than 20 years of Wrap and more than 40 years of wealth-link
Slide 45: Business Banking
Introduction 3Q24 Trading Update Macquarie in Asia BFS Glossary Business Banking We have an opportunity to grow through our deep industry expertise, strong relationship model and investment in technology Business Banking loans realised losses2 % ● Leveraging deep industry expertise to deliver strong
Slide 46: Platform uplift and digitisation
Introduction 3Q24 Trading Update Macquarie in Asia BFS Glossary Platform uplift and digitisation We have invested in uplifting our Business Banking platforms to enhance the customer experience and improve efficiency and scalability Business Banking Macquarie Business Online (MBO) Originations via nC
Slide 47: Home Loans
Introduction 3Q24 Trading Update Macquarie in Asia BFS Glossary Home Loans We have had strong market share growth underpinned by focus on customer and broker experience ● Success to date driven by the broker channel (94% broker flow / 6% direct Home loan portfolio flow in FY241) Market share6 Home l
Slide 48: Home Loans
Introduction 3Q24 Trading Update Macquarie in Asia BFS Glossary Home Loans We have maintained strong growth in low-LVR, high credit-quality lending Annual settlements 90+ days arrears3 Total amount settled $Ab % of home loans book originated in year % 27% 2.0% 22% 24% 1.7 10% 40 39 1.5% 7% 1%1 1% 1%
Slide 49: Home Loans
Introduction 3Q24 Trading Update Macquarie in Asia BFS Glossary Home Loans Composition of our home lending portfolio remains strong Repayment type1,2 Fixed vs. variable rate1,2 Interest only Principal & Interest Fixed rate Variable rate 17% 11% 20% 19% 80% 81% 83% 89% FY13 FY14 FY15 FY16 FY17 FY18 F
Slide 50: Deposits
Introduction 3Q24 Trading Update Macquarie in Asia BFS Glossary Deposits Deposits are key to our liability-led strategy, providing efficient funding for our lending businesses ● Strong growth in our deposits, representing ~4.9% of the Australian market1 with continued Customer deposits counterparty
Slide 51: Deposits
Introduction 3Q24 Trading Update Macquarie in Asia BFS Glossary Deposits We have a balanced and sustainable deposit portfolio +58% 1 in 3 ~138 DEFT1 57% $A35.2b SMSFs Increase in Integrations Financial Claims Total transaction Scheme coverage3 Transaction delivering accounts1 use the Macquarie opera
Slide 52: Technology foundational capabilities
Introduction 3Q24 Trading Update Macquarie in Asia BFS Glossary Technology foundational capabilities Our investment across technology capabilities has laid a strong foundation for scalable future growth Origination platform Digital experience Data & analytics Multi-cloud Pega and nCino originations
Slide 53: Building the culture to support our vision
Introduction 3Q24 Trading Update Macquarie in Asia BFS Glossary Building the culture to support our vision We are bringing the culture of technology companies to financial services, by focusing on digital, data, design and engineering (D3E) ~340 Digital first approach, delivering a leading end-to-en
Slide 54: Our future technology focus
Introduction 3Q24 Trading Update Macquarie in Asia BFS Glossary Our future technology focus We will continue to leverage our investment in technology and culture to deliver leading experiences ● Market leading reliability and availability for customers through continued reduction of Reliability & te
Slide 55: Well positioned for the future
Introduction 3Q24 Trading Update Macquarie in Asia BFS Glossary Well positioned for the future Deliver world class Through strong Built on end-to-end customer technology and a strong experiences data foundations risk culture Continued execution of our strategy, building on our strong foundations and
Slide 56: Image here
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Slide 57: Glossary
Introduction 3Q24 Trading Update Macquarie in Asia BFS Glossary Glossary $A / AUD Australian Dollar CY Calendar Year $US / USD United States Dollar DCM Debt Capital Markets £ / GBP Pound Sterling DEFT DEFT Payment Systems € / EUR Euro DPS Dividends Per Share 1H Half Year ended 30 September DRP Divid
Slide 58: Glossary
Introduction 3Q24 Trading Update Macquarie in Asia BFS Glossary Glossary IRR Internal Rate of Return no. Number IRRBB Interest Rate Risk in the Banking Book NPAT Net Profit After Tax IT Information Technology NPC Net Profit Contribution KRX Korea Stock Exchange NPS Net Promoter Score LAC Loss-Absorb
Slide 59: 2024 Operational Briefing
2024 Operational Briefing Macquarie Group Limited 13 February 2024 © Macquarie Group Limited 59