Investor Presentaiton
Overview of Macquarie
Operating Groups
Income statement key drivers
1Q24 Update
2H23
1H23
FY23
FY22
$Am
$Am
$Am
$Am
•
Net interest and trading income
6,313
4,210
10,523
6,856
Fee and commission income
3,526
3,032
6,558
6,887
Share of net (losses)/profits from
(52)
(61)
(113)
240
associates and joint ventures
Net credit impairment charges
(213)
(175)
(388)
(250)
•
Net other impairment
45
(111)
(66)
(259)
reversals/(charges)
·
Investment income
588
1,549
2,137
3,291
Other income and charges
274
197
471
559
Net operating income
10,481
8,641
19,122
17,324
Employment expenses
(4,090)
(3,613)
(7,703)
(6,725)
Brokerage, commission and fee
•
(511)
(517)
(1,028)
(1,029)
expenses
Other operating expenses
(1,916)
(1,483)
(3,399)
(3,031)
•
•
Total operating expenses
(6,517)
(5,613)
(12,130)
(10,785)
•
Operating profit before tax and
3,964
3,028
6,992
6,539
•
non-controlling interests
•
•
Income tax expense
(1,089)
(735)
(1,824)
(1,586)
Loss/(Profit) attributable to non-
2
12
14
controlling interests
(247)
•
•
Profit attributable to MGL
2,877
2,305
5,182
4,706
shareholders
O Macquarie Group Limited
Outlook
Appendix
Net interest and trading income of $A10,523m, up 53% on FY22
• Increased inventory management and trading income driven by trading gains from regional supply and
demand imbalances primarily in North American Gas and Power markets in CGM
Increased risk management revenue reflecting strong contributions across the platform, particularly from Gas
and Power, Global Oil and Resources in CGM
Growth in the average loan portfolio and deposit volumes, and improved margins from the rising interest rate
environment in BFS
Fee and commission income of $A6,558m, down 5% on FY22
•
•
Lower mergers and acquisitions fee income on a strong prior year and lower capital markets fee income due to
weaker market activity in Macquarie Capital
Significant disposition fee income relating to MIC in the prior year in MAM
Lower base fees in Public Investments driven by negative market movements and outflows in equity funds,
partially offset by acquisitions in the prior year and foreign exchange movements in MAM
Partially offset by:
•
Higher performance fees in MAM
Higher base fees in Private Markets due to fund raising and investments made by Private Markets-managed
funds and mandates in MAM
Share of net losses from associates and joint ventures of $A113m, significantly down from FY22
•
Significant equity accounted income from MIC and higher revaluation gains on underlying assets in the prior
year in MAM
Changes in the composition and performance of Macquarie Capital's investment portfolio
Credit and other impairment charges of $A454m, down 11% on FY22
Lower other impairment charges recognised on a small number of underperforming equity investments in the
current year in MAM and Macquarie Capital
Partially offset by:
Higher net credit impairment charges due to deterioration in the macroeconomic outlook
Release of COVID-19 overlays in the prior year
An impairment reversal related to MAM's investment in MIC in the prior year
Investment income of $A2,137m, down 35% on FY22 due to
Lower gains on asset realisations in the green energy sector in MAM
Non-recurrence of a gain on the partial sale of the UK Meters portfolio of assets in the prior year in CGM
Negative revaluation on equity investments and fewer material asset realisations in the current year in
Macquarie Capital
Total operating expenses of $A12,130m, up 12% on FY22
Higher salary and related expenses due to higher average headcount and wage inflation
Higher profit share expense and share-based payments expense mainly as a result of the performance of
the Group
Partially offset by:
•
One-off acquisition expenses incurred in the prior year in MAM
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