Investor Presentaiton

Macquarie FY20 result announcement I macquarie.com Banking and Financial Services Result Introduction Overview of Result Result Analysis and Financial Management Outlook Appendices O MACQUARIE FY20 FY19 $Am $Am Net interest and trading income¹ 1,728 1,678 Fee and commission income 445 476 Wealth management fee income 284 315 Banking and leasing fee income 161 161 Credit impairment charges (146) (67) • Other impairment charges (2) (15) Other income² Net operating income 12 31 2,037 2,103 Total operating expenses (1,267) (1,347) Net profit contribution³ 770 756 ° ⚫ Net interest and trading income of $A1,728m, up 3% on FY19 -10% growth in the average BFS deposit balance and a 10% growth in average loan and lease portfolio volumes - partially offset by margin compression on deposits and the sale of an investment in Macquarie Pacific Funding Fee and commission income of $A445m, down 7% on FY19 driven by lower wealth management fee income as the wealth advice business realigned to focus on the high net worth segment Credit impairment charges of $A146m, up 118% on FY19 with increased specific provisions in Business banking and Vehicle finance together with increased credit impairment charges on the performing portfolios related to a deterioration in current and expected macroeconomic conditions as a result of COVID-19 Other income of $A12m, down 61% on FY19 driven by equity investment dividends and revaluations in the prior year Total operating expenses of $A1,267m, down 6% on FY19 Funds on platform ($Ab) 79.1 86.0 Loan and lease portfolio5 ($Ab) BFS Deposits ($Ab) Headcount 75.3 62.5 63.9 53.4 - reduced staff as the wealth advice business realigned to focus on the high net worth segment - lower brokerage, commission and trading related expenses due to the sale of Macquarie Pacific Funding 2,660 2,772 1. Includes internal net interest expense and transfer pricing on funding provided by Group Treasury and deposit premium paid to BFS by Group Treasury for the generation of deposits, that are eliminated on consolidation in the Group's statutory P&L. 2. Includes share of net profits/(losses) of associates and joint ventures, internal management revenue and other income. 3. Management accounting profit before unallocated corporate costs, profit share and income tax. 4. Funds on platform includes Macquarie Wrap and Vision. 5. Loan and lease portfolio comprises home loans, loans to Australian businesses, vehicle finance and credit cards. 6. BFS deposits excludes corporate/wholesale deposits.. 63

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