Macquarie Group, Ltd. · ASX:MQG
Macquarie — Investor Presentation (September 2018)
82 slides from Macquarie's investor presentation, Sep 11, 2018
Slide 1: Investor presentation and outlook update
Macquarie Group Limited ABN 94 122 169 279 No.50 Martin Place Telephone (61 2) 8232 3333 Sydney NSW 2000 Facsimile (61 2) 8232 7780 GPO Box 4294 Internet http://www.macquarie.com Sydney NSW 1164 AUSTRALIA ASX/Media Release Investor presentation and outlook update SYDNEY, 11 September 2018 – As part
Slide 2: 25th CLSA Investor's Forum
25th CLSA Investor’s Forum Hong Kong Presentation to Investors and Analysts 11-12 September 2018 Alex Harvey Chief Financial Officer Sam Dobson Head of Investor Relations
Slide 3: Disclaimer
Macquarie | 25th CLSA Investors’ Forum | macquarie.com Overview of Macquarie Macquarie’s Operating Groups 1Q19 Update FY19 Outlook Appendices 2 Disclaimer This information has been prepared on a strictly confidential basis by Macquarie Group Limited ABN 94 122 169 279 (“Macquarie”) and may neither b
Slide 4: Agenda
Macquarie | 25th CLSA Investors’ Forum | macquarie.com Overview of Macquarie Macquarie’s Operating Groups 1Q19 Update FY19 Outlook Appendices Agenda 1. Overview of Macquarie 2. Macquarie’s Operating Groups 3. 1Q19 Update 4. FY19 Outlook 5. Appendices MACQUARIE 2018
Slide 5: Overview of Macquarie
Macquarie | 25th CLSA Investors’ Forum | macquarie.com Overview of Macquarie Macquarie’s Operating Groups 1Q19 Update FY19 Outlook Appendices 01 Overview of Macquarie MACQUARIE 2018
Slide 6: Macquarie overview
Macquarie | 25th CLSA Investors’ Forum | macquarie.com Overview of Macquarie Macquarie’s Operating Groups 1Q19 Update FY19 Outlook Appendices 5 Macquarie overview Diversified financial group providing clients with asset management and finance, banking, advisory and risk and capital solutions across
Slide 7: Why Macquarie?
Macquarie | 25th CLSA Investors’ Forum | macquarie.com Overview of Macquarie Macquarie’s Operating Groups 1Q19 Update FY19 Outlook Appendices 6 Why Macquarie? Unbroken profitability Predictable earnings Geographically Strong return on equity Annuity-style businesses represent diverse FY18: FY18 net
Slide 8: Macquarie's evolution is driven by our people
Macquarie | 25th CLSA Investors’ Forum | macquarie.com Overview of Macquarie Macquarie’s Operating Groups 1Q19 Update FY19 Outlook Appendices 7 Macquarie’s evolution is driven by our people EVOLUTION IN THE BUSINESS We seek to identify opportunity and realise it for our clients, community, sharehold
Slide 9: Unbroken profitability through adjacent growth
Macquarie | 25th CLSA Investors’ Forum | macquarie.com Overview of Macquarie Macquarie’s Operating Groups 1Q19 Update FY19 Outlook Appendices 8 Unbroken profitability through adjacent growth FY16 Esanda FY07 FY13 Thames Water1 Advantage Funding Profit Received Staff number Organic growth Acquisition
Slide 10: Strong earnings growth
Macquarie | 25th CLSA Investors’ Forum | macquarie.com Overview of Macquarie Macquarie’s Operating Groups 1Q19 Update FY19 Outlook Appendices 9 Strong earnings growth FY18 EPS of $A7.58 FY18 Operating income of $A10,920m FY18 up 15% on FY17 FY18 up 5% on FY17 $A $Am 8.00 12,000 7.00 10,000 6.00 8,00
Slide 11: Geographic footprint
Macquarie | 25th CLSA Investors’ Forum | macquarie.com Overview of Macquarie Macquarie’s Operating Groups 1Q19 Update FY19 Outlook Appendices 10 Geographic footprint Asia International income 67% of total income1 Staff Total staff 14,469; International staff 54% of total 11% 3,428 of total income In
Slide 12: Predictable earnings and geographically diverse
Macquarie | 25th CLSA Investors’ Forum | macquarie.com Overview of Macquarie Macquarie’s Operating Groups 1Q19 Update FY19 Outlook Appendices 11 Predictable earnings and geographically diverse Annuity-style vs Capital markets facing1 Geographical split of income2 FY07 FY18 FY07 FY18 MAM Americas CAF
Slide 13: Earnings volatility relative to Macquarie
Macquarie | 25th CLSA Investors’ Forum | macquarie.com Overview of Macquarie Macquarie’s Operating Groups 1Q19 Update FY19 Outlook Appendices 12 Stable earnings 5 year earnings volatility relative to Macquarie 10 year earnings volatility relative to Macquarie (since GFC) (includes GFC) Multiple to M
Slide 14: Strong shareholder returns
Macquarie | 25th CLSA Investors’ Forum | macquarie.com Overview of Macquarie Macquarie’s Operating Groups 1Q19 Update FY19 Outlook Appendices 13 Strong shareholder returns For purchases made at any point in time and held to date, Macquarie has consistently outperformed the ASX 200, Diversified Finan
Slide 15: Long term ratings stability
Macquarie | 25th CLSA Investors’ Forum | macquarie.com Overview of Macquarie Macquarie’s Operating Groups 1Q19 Update FY19 Outlook Appendices 14 Long term ratings stability Macquarie Bank Limited Standard & Poor’s Ratings Movements from 2007 AA+ Rating movement (notches) AA AA- 3 5 6 5 2007 A+ 0 2 6
Slide 16: Funded balance sheet remains strong
Macquarie | 25th CLSA Investors’ Forum | macquarie.com Overview of Macquarie Macquarie’s Operating Groups 1Q19 Update FY19 Outlook Appendices 15 Funded balance sheet remains strong Term liabilities cover term assets 31 Mar 17 31 Mar 18 30 Jun 18 $Ab $Ab $Ab These charts represent Macquarie’s funded
Slide 17: Diversified issuance strategy
Macquarie | 25th CLSA Investors’ Forum | macquarie.com Overview of Macquarie Macquarie’s Operating Groups 1Q19 Update FY19 Outlook Appendices 16 Diversified issuance strategy Term funding beyond 1 year has a weighted average maturity of 4.6 years1 Currency2 Tenor3 Type Securitisations GBP > 1 yr Loa
Slide 18: Strong regulatory ratios
Macquarie | 25th CLSA Investors’ Forum | macquarie.com Overview of Macquarie Macquarie’s Operating Groups 1Q19 Update FY19 Outlook Appendices 17 Strong regulatory ratios Bank Group (Jun 18) 17.5% 7.5% 190.0% 115.0% 6.4% 112% 14.0% 6.0% 160.0% 110.0% 12.8% 155% 5.6% 10.5% 4.5% 130.0% 105.0% 10.3% 7.0
Slide 19: Basel III capital position
Macquarie | 25th CLSA Investors’ Forum | macquarie.com Overview of Macquarie Macquarie’s Operating Groups 1Q19 Update FY19 Outlook Appendices 18 Basel III capital position APRA Basel III Group capital at Jun 18 of $A18.8b, Group capital surplus of $A3.4b1,2 $Ab Group regulatory surplus: Basel III (J
Slide 20: Regulatory and tax update
Macquarie | 25th CLSA Investors’ Forum | macquarie.com Overview of Macquarie Macquarie’s Operating Groups 1Q19 Update FY19 Outlook Appendices 19 Regulatory and tax update • Regulatory capital1 – In Jul 17 APRA provided guidance on the level of CET1 capital ratios for Australian banks to be considere
Slide 21: Capital management update
Macquarie | 25th CLSA Investors’ Forum | macquarie.com Overview of Macquarie Macquarie’s Operating Groups 1Q19 Update FY19 Outlook Appendices 20 Capital management update • Share buyback – No buying occurred during 1Q19. Macquarie’s share buyback program remains in place, with any share purchases su
Slide 22: Long standing conservative risk management framework
Macquarie | 25th CLSA Investors’ Forum | macquarie.com Overview of Macquarie Macquarie’s Operating Groups 1Q19 Update FY19 Outlook Appendices 21 Long standing conservative risk management framework Macquarie’s core risk management principles have remained stable and continue to be effective The
Slide 23: Macquarie's Operating Groups
Macquarie | 25th CLSA Investors’ Forum | macquarie.com Overview of Macquarie Macquarie’s Operating Groups 1Q19 Update FY19 Outlook Appendices 02 Macquarie’s Operating Groups MACQUARIE 2018
Slide 24: Macquarie overview
Macquarie | 25th CLSA Investors’ Forum | macquarie.com Overview of Macquarie Macquarie’s Operating Groups 1Q19 Update FY19 Outlook Appendices 23 Macquarie overview Annuity-style businesses (~70%) Capital markets facing businesses (~30%) Macquarie Asset Management (MAM) Commodities and Global Markets
Slide 25: Macquarie Asset Management
Macquarie | 25th CLSA Investors’ Forum | macquarie.com Overview of Macquarie Macquarie’s Operating Groups 1Q19 Update FY19 Outlook Appendices 24 Macquarie Asset Management Actively manages money for investors across multiple asset classes Net profit contribution 10% No.1 Top 50 33% $A1,685 million 1
Slide 26: Macquarie Asset Management
Macquarie | 25th CLSA Investors’ Forum | macquarie.com Overview of Macquarie Macquarie’s Operating Groups 1Q19 Update FY19 Outlook Appendices 25 ANNUITY-STYLE BUSINESS 33% 1 Macquarie Asset Management Growth in base fees Net Profit Contribution2 ($Am) Base Fees ($Am) AUM ($Ab) 1,800 1,800 550 534 1,
Slide 27: MIRA: Income includes more than base fees
Macquarie | 25th CLSA Investors’ Forum | macquarie.com Overview of Macquarie Macquarie’s Operating Groups 1Q19 Update FY19 Outlook Appendices 26 ANNUITY-STYLE BUSINESS 33% 1 MIRA: Income includes more than base fees MIRA performance fees and other income $Am (LHS) Average base fees (RHS)2 86 $Am MIR
Slide 28: Corporate and Asset Finance
27 Corporate and Asset Finance Finances the assets people use every day Net profit contribution 1% $A16.4 billion $A8.2 billion 24% $A1,206 million 1 on FY17 Vehicles portfolio2 Aviation portfolio2 Leading Australian Leading global aircraft lessor vehicle financier 196 600,000+ owned planes Vehicles
Slide 29: Corporate and Asset Finance
Macquarie | 25th CLSA Investors’ Forum | macquarie.com Overview of Macquarie Macquarie’s Operating Groups 1Q19 Update FY19 Outlook Appendices 28 ANNUITY-STYLE BUSINESS Corporate and Asset Finance 24% 1 Asset and loan portfolios Net Profit Contribution2 ($Am) Asset Finance Portfolio ($Ab) Principal F
Slide 30: Banking and Financial Services
29 Banking and Financial Services A technology-driven Australian retail bank and wealth manager Net profit contribution 9% $A86.8 billion 11% $A560 million 1 on FY17 Best Digital Banking Offering2 Funds on platform3 Personal Wealth Business $A46.9 billion banking management banking Australia’s 1st t
Slide 31: Banking and Financial Services
Macquarie | 25th CLSA Investors’ Forum | macquarie.com Overview of Macquarie Macquarie’s Operating Groups 1Q19 Update FY19 Outlook Appendices 30 ANNUITY-STYLE BUSINESS 11% 1 Banking and Financial Services Growth in BFS deposits and mortgages Net Profit Contribution2 ($Am) BFS Deposits3 ($Ab) Austral
Slide 32: Commodities and Global Markets
31 Commodities and Global Markets Provides clients with access to markets, financing, hedging, research and market analysis, and physical execution Net profit contribution 18% $A910 million 1 6% No.2 Derivatives on FY17 House of the Year3 US physical gas Energy marketer in North America2 30 years +
Slide 33: Commodities and Global Markets
Macquarie | 25th CLSA Investors’ Forum | macquarie.com Overview of Macquarie Macquarie’s Operating Groups 1Q19 Update FY19 Outlook Appendices 32 CAPITAL MARKETS FACING BUSINESS Commodities and Global Markets 18% 1 Integrated, end-to-end offering across global markets Net Profit Contribution2 ($Am) N
Slide 34: Macquarie Capital
33 Macquarie Capital Advises and invests alongside clients and partners to realise opportunity Net profit contribution Global leader 14% 1 $A700 million 45% in green energy infrastructure on FY17 No.1 global infrastructure No.1 completed financial adviser3 M&A deals, IPOs in Australia6 Energy Infras
Slide 35: Macquarie Capital
Macquarie | 25th CLSA Investors’ Forum | macquarie.com Overview of Macquarie Macquarie’s Operating Groups 1Q19 Update FY19 Outlook Appendices 34 CAPITAL MARKETS FACING BUSINESS 14% 1 Macquarie Capital Globally diversified with a core strength in real assets Net Profit Contribution2 ($Am) Income by r
Slide 36: 1Q19 Update
Macquarie | 25th CLSA Investors’ Forum | macquarie.com Overview of Macquarie Macquarie’s Operating Groups 1Q19 Update FY19 Outlook Appendices 03 1Q19 Update MACQUARIE 2018
Slide 37: 1Q19 Macquarie update
Macquarie | 25th CLSA Investors’ Forum | macquarie.com Overview of Macquarie Macquarie’s Operating Groups 1Q19 Update FY19 Outlook Appendices 36 1Q19 Macquarie update • Operating groups performing well, in line with expectations • 1Q19 operating group contribution1 up on pcp and down on a strong pri
Slide 38: Annuity-style businesses 1Q19 Update
Macquarie | 25th CLSA Investors’ Forum | macquarie.com Overview of Macquarie Macquarie’s Operating Groups 1Q19 Update FY19 Outlook Appendices 37 Annuity-style businesses 1Q19 Update FY18 contribution1 Activity during the quarter • AUM of $A534.1b, up 8% on Mar 18, largely due to reaching financial c
Slide 39: Capital markets facing businesses 1Q19 Update
Macquarie | 25th CLSA Investors’ Forum | macquarie.com Overview of Macquarie Macquarie’s Operating Groups 1Q19 Update FY19 Outlook Appendices 38 Capital markets facing businesses 1Q19 Update FY18 contribution1 Activity during the quarter • Increased client hedging and trading opportunities across th
Slide 40: FY19 Outlook
Macquarie | 25th CLSA Investors’ Forum | macquarie.com Overview of Macquarie Macquarie’s Operating Groups 1Q19 Update FY19 Outlook Appendices 04 FY19 Outlook MACQUARIE 2018
Slide 41: Factors impacting short-term outlook
Macquarie | 25th CLSA Investors’ Forum | macquarie.com Overview of Macquarie Macquarie’s Operating Groups 1Q19 Update FY19 Outlook Appendices 40 Factors impacting short-term outlook Annuity-style businesses Capital markets facing businesses Macquarie Asset Management (MAM) Commodities and Global Mar
Slide 42: Short-term outlook
Macquarie | 25th CLSA Investors’ Forum | macquarie.com Overview of Macquarie Macquarie’s Operating Groups 1Q19 Update FY19 Outlook Appendices 41 Short-term outlook • The Group’s result for FY19 is currently expected to be broadly in line with FY18 – 1H19 result is expected to be broadly in line with
Slide 43: Medium-term
Macquarie | 25th CLSA Investors’ Forum | macquarie.com Overview of Macquarie Macquarie’s Operating Groups 1Q19 Update FY19 Outlook Appendices 42 Medium-term • Macquarie remains well positioned to deliver superior performance in the medium-term • Deep expertise in major markets • Build on our strengt
Slide 44: Approximate business Basel III Capital & ROE
Macquarie | 25th CLSA Investors’ Forum | macquarie.com Overview of Macquarie Macquarie’s Operating Groups 1Q19 Update FY19 Outlook Appendices 43 Approximate business Basel III Capital & ROE 31 Mar 18 1 APRA Basel III Capital Approx. FY18 Return Approx. 12-Year Average Operating Group 2 @ 8.5% ($Ab)
Slide 45: Medium-term
Macquarie | 25th CLSA Investors’ Forum | macquarie.com Overview of Macquarie Macquarie’s Operating Groups 1Q19 Update FY19 Outlook Appendices 44 Medium-term Annuity-style businesses Capital markets facing businesses Macquarie Asset Management (MAM) Commodities and Global Markets (CGM) Annuity-style
Slide 46: Select slides from result announcement
Macquarie | 25th CLSA Investors’ Forum | macquarie.com Overview of Macquarie Macquarie’s Operating Groups 1Q19 Update FY19 Outlook Appendices APPENDIX A Select slides from result announcement for the full year ended 31 March 2018 MACQUARIE 2018
Slide 47: Income Statement key drivers
Macquarie | 25th CLSA Investors’ Forum | macquarie.com Overview of Macquarie Macquarie’s Operating Groups 1Q19 Update FY19 Outlook Appendices 46 Income Statement key drivers 2H18 1H18 FY18 FY17 • Net interest and trading income of $A3,943m was in line with FY17 reflecting: $Am $Am $Am $Am – 6% growt
Slide 48: Income Statement by Operating Group
Macquarie | 25th CLSA Investors’ Forum | macquarie.com Overview of Macquarie Macquarie’s Operating Groups 1Q19 Update FY19 Outlook Appendices 47 Income Statement by Operating Group $Am
Slide 49: Macquarie Asset Management
Macquarie | 25th CLSA Investors’ Forum | macquarie.com Overview of Macquarie Macquarie’s Operating Groups 1Q19 Update FY19 Outlook Appendices 48 Macquarie Asset Management Strong result: FY18 benefiting from strong base and performance fees and investment-related income, partially offset by higher i
Slide 50: MAM AUM movement
Macquarie | 25th CLSA Investors’ Forum | macquarie.com Overview of Macquarie Macquarie’s Operating Groups 1Q19 Update FY19 Outlook Appendices 49 MAM AUM movement $Ab MAM $A480b MIM +$A14b MIRA +$A1b2 MSIS3 MAM $A495b 600 MSIS $A6b 15 1 1 MSIS $A6b 500 (2) Flat 400 MIM MIM 300 $A320b $A334b 200 100 M
Slide 51: MIRA EUM movement
Macquarie | 25th CLSA Investors’ Forum | macquarie.com Overview of Macquarie Macquarie’s Operating Groups 1Q19 Update FY19 Outlook Appendices 50 MIRA EUM movement $Ab 100 2.2 (4.2) 15.5 (9.3) 4.8 80 60 86.2 40 77.2 20 - 31 Mar 17 Capital raised Acquisition of GIG Listed security price Committed capi
Slide 52: Corporate and Asset Finance
Macquarie | 25th CLSA Investors’ Forum | macquarie.com Overview of Macquarie Macquarie’s Operating Groups 1Q19 Update FY19 Outlook Appendices 51 Corporate and Asset Finance Impact of declining volumes in Principal Finance offset by lower provisions $Am KEY DRIVERS 1,400 • Asset Finance contribution
Slide 53: Corporate and Asset Finance
Macquarie | 25th CLSA Investors’ Forum | macquarie.com Overview of Macquarie Macquarie’s Operating Groups 1Q19 Update FY19 Outlook Appendices 52 Corporate and Asset Finance Asset Finance movement in the portfolio $Ab
Slide 54: Principal Finance movement in the portfolio
Macquarie | 25th CLSA Investors’ Forum | macquarie.com Overview of Macquarie Macquarie’s Operating Groups 1Q19 Update FY19 Outlook Appendices 53 Corporate and Asset Finance Principal Finance movement in the portfolio Principal Finance exposure by category $Ab Other 8.0 11% Corporate Real 1.2 Aerospa
Slide 55: Banking and Financial Services
Macquarie | 25th CLSA Investors’ Forum | macquarie.com Overview of Macquarie Macquarie’s Operating Groups 1Q19 Update FY19 Outlook Appendices 54 Banking and Financial Services Stronger volumes offsetting impact of FY17 sale of businesses and non-recurring items $Am KEY DRIVERS 700 Business growth +2
Slide 56: Banking and Financial Services
Macquarie | 25th CLSA Investors’ Forum | macquarie.com Overview of Macquarie Macquarie’s Operating Groups 1Q19 Update FY19 Outlook Appendices 55 Banking and Financial Services Strong balance sheet growth across the portfolios $Ab $Ab 90 8 82.5 7.3 80 7 72.2 6.5 70 5.9 6 58.4 5.2 60 5 50 48.0 44.5 45
Slide 57: Commodities and Global Markets
Macquarie | 25th CLSA Investors’ Forum | macquarie.com Overview of Macquarie Macquarie’s Operating Groups 1Q19 Update FY19 Outlook Appendices 56 Commodities and Global Markets Strong commodities and FX results in challenging market conditions, equities improving KEY DRIVERS $Am • Lower impairments w
Slide 58: Client numbers
Macquarie | 25th CLSA Investors’ Forum | macquarie.com Overview of Macquarie Macquarie’s Operating Groups 1Q19 Update FY19 Outlook Appendices 57 Commodities and Global Markets Strong client base 1,600 Client numbers 1,500 1,476 1,416 1,400 1,300 1,200 1,112 1,100 1,053 1,010 1,000 959 900 800 Commod
Slide 59: Macquarie Capital
Macquarie | 25th CLSA Investors’ Forum | macquarie.com Overview of Macquarie Macquarie’s Operating Groups 1Q19 Update FY19 Outlook Appendices 58 Macquarie Capital Result driven by strong investment-related income largely in green energy $Am KEY DRIVERS 800 - • Fee income broadly in line: 37 ( 51 ) -
Slide 60: Macquarie Capital
Macquarie | 25th CLSA Investors’ Forum | macquarie.com Overview of Macquarie Macquarie’s Operating Groups 1Q19 Update FY19 Outlook Appendices 59 Macquarie Capital Movement in capital $Ab 3.5 +$A1.4b ($A0.5b) 3.0 $A2.6b 2.5 2.0 $A1.7b 1.5 1.0 0.5 - 31 Mar 17 Investments Realisations 31 Mar 18 DCM Loa
Slide 61: Impairment and provision expenses
Macquarie | 25th CLSA Investors’ Forum | macquarie.com Overview of Macquarie Macquarie’s Operating Groups 1Q19 Update FY19 Outlook Appendices 60 Impairment and provision expenses $Am KEY DRIVERS 700 • Increase in MAM largely reflects the write-down of MIRA’s investment in MIC 600 ( 96 ) • Decrease i
Slide 62: Costs of compliance
Macquarie | 25th CLSA Investors’ Forum | macquarie.com Overview of Macquarie Macquarie’s Operating Groups 1Q19 Update FY19 Outlook Appendices 61 Costs of compliance FY18 FY17 Regulatory project spend $Am $Am • The industry continues to see an increase in Basel III and liquidity 7 12 regulatory initi
Slide 63: Balance sheet highlights
Macquarie | 25th CLSA Investors’ Forum | macquarie.com Overview of Macquarie Macquarie’s Operating Groups 1Q19 Update FY19 Outlook Appendices 62 Balance sheet highlights • Balance sheet remains solid and conservative – Term assets covered by term funding, stable deposits and equity – Minimal relianc
Slide 64: Diversified issuance strategy
Macquarie | 25th CLSA Investors’ Forum | macquarie.com Overview of Macquarie Macquarie’s Operating Groups 1Q19 Update FY19 Outlook Appendices 63 Diversified issuance strategy Term funding as at 31 Mar 18 – diversified by currency1, tenor2 and type Currency Tenor Type Loan capital Covered Bonds • Wel
Slide 65: Continued customer deposit growth
Macquarie | 25th CLSA Investors’ Forum | macquarie.com Overview of Macquarie Macquarie’s Operating Groups 1Q19 Update FY19 Outlook Appendices 64 Continued customer deposit growth Macquarie has been successful in pursuing its strategy of diversifying its funding sources by growing its deposit base •
Slide 66: Loan and lease portfolios – Funded Balance Sheet
Macquarie | 25th CLSA Investors’ Forum | macquarie.com Overview of Macquarie Macquarie’s Operating Groups 1Q19 Update FY19 Outlook Appendices 65 Loan and lease portfolios1 – Funded Balance Sheet Operating Mar 18 Mar 17 Group Category $Ab $Ab Description Asset Finance2 25.1 22.2 Finance lease assets
Slide 67: Equity investments of $A6.8b
Macquarie | 25th CLSA Investors’ Forum | macquarie.com Overview of Macquarie Macquarie’s Operating Groups 1Q19 Update FY19 Outlook Appendices 66 Equity investments of $A6.8b1 Carrying value2 Carrying value2 Carrying value2 Mar 18 Sep 17 Mar 17 Category $Ab $Ab $Ab Description Macquarie Asset Managem
Slide 68: Accounting Standard update
Macquarie | 25th CLSA Investors’ Forum | macquarie.com Overview of Macquarie Macquarie’s Operating Groups 1Q19 Update FY19 Outlook Appendices 67 Accounting Standard update AASB.9 Financial Instruments • Full standard adopted from 1 Apr 18 • No material impact to Macquarie on transition • Key reporti
Slide 69: Bank Group Basel III Common Equity Tier 1 (CET1) Ratio
Macquarie | 25th CLSA Investors’ Forum | macquarie.com Overview of Macquarie Macquarie’s Operating Groups 1Q19 Update FY19 Outlook Appendices 68 Bank Group Basel III Common Equity Tier 1 (CET1) Ratio APRA Basel III CET1 ratio: 11.0%1 Harmonised Basel III CET1 ratio: 13.5%2 Bank Group Common Equity T
Slide 70: Business growth
Macquarie | 25th CLSA Investors’ Forum | macquarie.com Overview of Macquarie Macquarie’s Operating Groups 1Q19 Update FY19 Outlook Appendices 69 Business growth KEY DRIVERS • Increase in MAM of $A0.5b mainly due to acquisitions: – Net increase of $A0.1b due to on-balance sheet investments Business C
Slide 71: Strong liquidity position maintained
Macquarie | 25th CLSA Investors’ Forum | macquarie.com Overview of Macquarie Macquarie’s Operating Groups 1Q19 Update FY19 Outlook Appendices 70 Strong liquidity position maintained • 162% average LCR for Mar 18 quarter, based on daily observations – Maintained well above regulatory minimums – Inclu
Slide 72: Detailed result commentary
Macquarie | 25th CLSA Investors’ Forum | macquarie.com Overview of Macquarie Macquarie’s Operating Groups 1Q19 Update FY19 Outlook Appendices APPENDIX B Detailed result commentary MACQUARIE 2018
Slide 73: Macquarie Asset Management
Macquarie | 25th CLSA Investors’ Forum | macquarie.com Overview of Macquarie Macquarie’s Operating Groups 1Q19 Update FY19 Outlook Appendices 72 Macquarie Asset Management Result FY18 FY17 • Base fees of $A1,608m, broadly in line with FY17: $Am $Am – Increased fees from positive market movements in
Slide 74: Corporate and Asset Finance
Macquarie | 25th CLSA Investors’ Forum | macquarie.com Overview of Macquarie Macquarie’s Operating Groups 1Q19 Update FY19 Outlook Appendices 73 Corporate and Asset Finance Result FY18 FY17 • Net interest and trading income of $A582m, down 18% on FY17 mainly as a result $Am $Am of the reduction in t
Slide 75: Banking and Financial Services
Macquarie | 25th CLSA Investors’ Forum | macquarie.com Overview of Macquarie Macquarie’s Operating Groups 1Q19 Update FY19 Outlook Appendices 74 Banking and Financial Services Result FY18 FY17 • Net interest and trading income of $A1,182m, up 13% on FY17 $Am $Am – 6% growth in average Australian loa
Slide 76: Commodities and Global Markets
Macquarie | 25th CLSA Investors’ Forum | macquarie.com Overview of Macquarie Macquarie’s Operating Groups 1Q19 Update FY19 Outlook Appendices 75 Commodities and Global Markets Result FY18 FY17 • Commodities income of $A1,093m, down 3% on FY17 $Am $Am – Risk management products down 6% on FY17 reflec
Slide 77: Macquarie Capital
Macquarie | 25th CLSA Investors’ Forum | macquarie.com Overview of Macquarie Macquarie’s Operating Groups 1Q19 Update FY19 Outlook Appendices 76 Macquarie Capital Result FY18 FY17 • Fee income was broadly in line with FY17: $Am $Am - M&A: lower fee income across most regions except Europe Fee and co
Slide 78: Glossary
Macquarie | 25th CLSA Investors’ Forum | macquarie.com Overview of Macquarie Macquarie’s Operating Groups 1Q19 Update FY19 Outlook Appendices APPENDIX B Glossary MACQUARIE 2018
Slide 79: Glossary
Macquarie | 25th CLSA Investors’ Forum | macquarie.com Overview of Macquarie Macquarie’s Operating Groups 1Q19 Update FY19 Outlook Appendices 78 Glossary $A / AUD Australian Dollar CAF Corporate and Asset Finance $C / CAD Canadian Dollar CAGR Compound Annual Growth Rate $US / USD United States Dolla
Slide 80: Glossary
Macquarie | 25th CLSA Investors’ Forum | macquarie.com Overview of Macquarie Macquarie’s Operating Groups 1Q19 Update FY19 Outlook Appendices 79 Glossary GW Gigawatt MIRA Macquarie Infrastructure and Real Assets GWH Gigawatt Hours mmboe Million Barrels of Oil Equivalent HK Hong Kong MSIS Macquarie S
Slide 81: Glossary
Macquarie | 25th CLSA Investors’ Forum | macquarie.com Overview of Macquarie Macquarie’s Operating Groups 1Q19 Update FY19 Outlook Appendices 80 Glossary UK United Kingdom UK GIB United Kingdom Green Investment Bank US / USA United States of America yr Year YTD Year To Date
Slide 82: 25th CLSA Investor's Forum
25th CLSA Investor’s Forum Hong Kong Presentation to Investors and Analysts 11-12 September 2018 Alex Harvey Chief Financial Officer Sam Dobson Head of Investor Relations
Macquarie Group — Investor Presentation (September 2018) on 6ix