Investor Presentaiton

Macquarie FY20 result announcement I macquarie.com Capital management Macquarie notes the strength of its capital position Reported Level 3 surplus of $A7.1b1 - the highest Macquarie has reported Introduction Overview of Result Result Analysis and Financial Management Outlook Appendices O MACQUARIE MBL Level 2 CET1 of 12.2% - the highest Macquarie has reported Macquarie acknowledges APRA's guidance in relation to capital management² In light of APRA's guidance, together with the continuing uncertainty as to the impacts of COVID-19, and Macquarie's strong capital position and earnings generated for FY20, the MGL Board has resolved to: • Pay a final FY20 dividend per share (DPS) of $A1.80, materially down (50%) on the FY19 final DPS In conjunction with the interim DPS of $A2.50, this represents a FY20 DPS of $A4.30, and a FY20 dividend payout ratio of 56% The final dividend will be funded entirely by the 2H20 earnings of the Non-Bank Group Issue shares to satisfy the DRP (at a discount of 1.5%) for the 2H20 dividend, and issue shares for MEREP requirements - which together are expected to more than offset the capital impact of the dividend, by ~$A0.1b - $A0.2b3 Macquarie notes that MBL has not declared any dividends in FY20, nor are any being declared at this time Macquarie notes that it has further strengthened its ordinary equity position through generating or raising ~$A3.7b of additional capital since Mar 19 . • Retained earnings for FY20 of ~$A1.2b, net of dividends4; new equity raised in September 2019 of $A1.7b; shares to be issued for MEREP requirements of ~$A0.6b; and shares to be issued to satisfy the DRP, estimated at ~$A0.2b ~$A2.5b of this ordinary equity is in MBL (reflecting ~$A1.5b of FY20 retained earnings, and a $A1.0b MBL recapitalisation) These measures, supported by stress testing analysis, provide a significant buffer for further and extended COVID-19 volatility and allow capacity for business growth where opportunities arise, including continuing to provide credit to the Australian economy • In this regard, Macquarie notes that in FY20, MBL's Australian home loan book grew by ~35% and the Business Banking loan book grew by ~10% 1. Calculated at 8.5% RWA including the capital conservation buffer (CCB), per APRA ADI Prudential Standard 110. Based on materiality, the 8.5% used to calculate the Group capital surplus does not include the countercyclical capital buffer (CCYB) of -3bps. 2. 7 Apr 20; 'APRA issues guidance to authorised deposit-taking institutions and insurers on capital management'. 3. Depending on DRP participation. 4. Includes FY20 interim dividend of $A2.50 per share and FY20 final dividend of $A1.80 per share. 25

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