Slide 1: 3Q23 Trading Update
3Q23 Trading Update Macquarie Group Limited 7 February 2023 Image credit: Pennsylvania Department of Transportation © 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 and
Slide 3: Agenda
Agenda 01 02 10:00am 10:05am Introduction 3Q23 Trading update Sam Dobson Shemara Wikramanayake 03 10:20am Q&A © Macquarie Group Limited 3
Slide 4: Introduction
01 Image here Introduction Sam Dobson Head of Investor Relations
Slide 5: 3Q23 Trading update
02 Image here 3Q23 Trading update Shemara Wikramanayake Managing Director and Chief Executive Officer
Slide 6: About Macquarie
Introduction 3Q23 Trading update Q&A Glossary About Macquarie Annuity-style activities | Net Profit Contribution ~50% Markets-facing activities | Net Profit Contribution ~50% BFS MAM CGM MacCap Banking and Financial Services Macquarie Asset Management Commodities and Global Markets Macquarie Capital
Slide 7: 3Q23 Overview
3Q23 Overview ● Varied conditions for our diverse businesses in the December 2022 quarter (3Q23) with FY23 YTD NPAT slightly up on FY22 YTD which included a record quarterly result in 3Q22 ● Macquarie's annuity-style businesses' (MAM and BFS) combined 3Q23 net profit contribution substantially down
Slide 8: 3Q23 Overview: Annuity-style businesses
Introduction 3Q23 Trading update Q&A Glossary 3Q23 Overview Annuity-style businesses Macquarie Asset Management Banking and Financial Services ~31% 1H23 contribution1 ~13% 1H23 contribution1 ● AUM2 of $A797.8b at Dec 22, broadly in line with Sep 22 ● Total BFS deposits4 of $A125.7b at Dec 22, up 8%
Slide 9: 3Q23 Overview: Markets-facing businesses
Introduction 3Q23 Trading update Q&A Glossary 3Q23 Overview Markets-facing businesses Commodities and Global Markets Macquarie Capital ~43% 1H23 contribution1 ~13% 1H23 contribution1 ● Exceptionally strong results across the commodities platform, particularly in global Gas & Power and Oil ● 84 trans
Slide 10: Macquarie's global footprint
Introduction 3Q23 Trading update Q&A Glossary Macquarie's global footprint Americas EMEA Asia Australia2 Total staff1 Staff Staff Staff Staff 19,908 3,338 2,783 4,172 9,615 CANADA USA Orlando EUROPE Munich ASIA Manila AUSTRALIA NEW ZEALAND Calgary Boise Overland Park Amsterdam Paris Bangkok Mumbai A
Slide 11: Funded balance sheet remains strong
Introduction 3Q23 Trading update Q&A Glossary Funded balance sheet remains strong Term liabilities exceed term assets 30 Sep 22 31 Dec 22 $Ab $Ab 330 330 300 300 ST wholesale issued paper 13% ST wholesale issued paper 11% Total customer deposits7 270 270 Other debt maturing in the Other debt maturin
Slide 12: Basel III capital position
Introduction 3Q23 Trading update Q&A Glossary Basel III capital position • Strong capital position to support business activity and invest in new opportunities where expected risk adjusted returns are attractive • APRA Basel III Group capital at Dec 22 of $A37.4b; Group capital surplus of $A12.5b1,2
Slide 13: Business capital requirements
Introduction 3Q23 Trading update Q&A Glossary Business capital requirements1 3Q23 business capital requirement growth of $A0.4b excluding FX movements 3Q23 Key drivers $Ab MAM 30.0 ● Growth in new fund co-investments and underwrites to seed core and adjacent 28.0 fund strategies 26.0 0.1 2.4 4 BFS 0
Slide 14: Capital management update
Introduction 3Q23 Trading update Q&A Glossary Capital management update Dividend Reinvestment Plan (DRP) ● On 13 Dec 22, the DRP in respect of the 1H23 dividend was satisfied through the allocation of ordinary shares at a price of $178.801 per share. The shares allocated under the DRP were acquired
Slide 15: Strong regulatory ratios
Introduction 3Q23 Trading update Q&A Glossary Strong regulatory ratios Bank Group Level 2 Ratios (Dec 22) 17.5% 16.9% 7.5% 220% 130% 203%¹ 5.9% 14.0% 6.0% 180% 120% 13.3% 117% 5.2% 10.5% 4.5% 140% 110% 7.0% 3.0% 100% 100% 3.5% 1.5% 60% 90% 0.0% 0.0% 20% 80% CET1 ratio Leverage ratio LCR 2 NSFR 2 Ban
Slide 16: Regulatory update
Introduction 3Q23 Trading update Q&A Glossary Regulatory update Australia APRA has finalised or is in the process of implementing changes to a number of prudential standards1. Macquarie notes the following key updates: ● APRA’s new bank capital framework, designed to embed “Unquestionably Strong” le
Slide 17: Short-term outlook
Introduction 3Q23 Trading update Q&A 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 with raising and deploymen
Slide 18: Short-term outlook
Introduction 3Q23 Trading update Q&A 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 geopolitical events ● Com
Slide 19: Medium-term outlook
Introduction 3Q23 Trading update Q&A Glossary Medium-term outlook Macquarie remains well-positioned to deliver superior performance in the medium term Deep expertise in major markets Build on our strength in business and geographic diversity and continue to adapt our portfolio mix to changing market
Slide 20: Medium-term outlook
Introduction 3Q23 Trading update Q&A Glossary Medium-term outlook Annuity-style businesses Markets-facing businesses Non-Banking Group Macquarie Asset Management (MAM) Macquarie Capital (MacCap) ● Global specialist asset manager, well-positioned to respond to current market conditions and ● Continue
Slide 21: Approximate business Basel III Capital and ROE
Introduction 3Q23 Trading update Q&A Glossary Approximate business Basel III Capital and ROE 30 Sep 22 APRA Basel III Capital Approx. 1H23 Return on Approx. 16-year Average Operating Group @ 8.5% ($Ab) Ordinary Equity1 Return on Ordinary Equity2 Annuity-style businesses 10.9 Macquarie Asset Manageme
Slide 22: Q&A
03 Image here Q&A
Slide 23: Glossary
© macauaric O4 Glossary
Slide 24: Glossary
Glossary $A / AUD Australian Dollar FCTR Foreign currency translation reserve and net investment hedge reserve $US / USD United States Dollar FX Foreign Exchange £ / GBP Pound Sterling FY23 Full Year ending 31 March 2023 € Euro GIG Green Investment Group 1H23 Half Year ended 30 September 2022 HVDC H
Slide 25: 3Q23 Trading Update
3Q23 Trading Update Macquarie Group Limited 7 February 2023 © Macquarie Group Limited 25