Investor Presentaiton
Overview of Macquarie
Operating Groups
1Q23 Update
Outlook
Appendix
Commodities and Global Markets
Result
Commodities
Risk management
FY22
FY21
$Am
$Am
3,324
2,671
2,033
1,461
Lending and financing
212
234
Inventory management and trading
1,079
976
Foreign exchange, interest rates and credit
888
748
Equities
394
339
Asset Finance
126
98
Net interest and trading income¹
4,732
3,856
Fee and commission income
507
485
Net operating lease income²
335
383
Investment and other income³
670
191
Credit and other impairment charges
(65)
(237)
Net operating income
6,179
4,678
Brokerage, commission and fee expenses
(389)
(388)
Other operating expenses
(1,879)
(1,689)
Total operating expenses
(2,268)
(2,077)
Net profit contribution
Headcount
3,911
2,179
2,601
2,133
Commodities income of $A3,324m, up 24% on FY21;
Risk management up 39% on a strong FY21 with gains across the platform, particularly in Gas and
Power, Resources, Agriculture and Global Oil driven by increased client hedging activity and trading
activity due to elevated levels of volatility and price movements in commodity markets partially offset
by the impact of fair value adjustments across the derivatives portfolio.
Lending and financing down 9% on FY21 with reduced contributions in specific sectors.
Inventory management and trading up 11% on FY21 driven by trading gains from supply and demand
imbalances in North American Gas and Power partially offset by unfavourable impact of timing of
income recognition on Gas storage and transport contracts.
Foreign exchange, interest rates and credit income of $A888m, up 19% on FY21 due to increased client
activity in global structured foreign exchange products and growth in securitisation and credit products.
Equities income of $A394m, up 16% on FY21 due to an improved performance in equity finance. In
addition, there was a strong contribution from trading activities.
Asset Finance interest and trading income of $A126m, up 29% on FY21 due to net proceeds from end of
lease asset sales and increased earnings from Structured Lending and Shipping Finance portfolios.
Fee and commission income of $A507m, up 5% on FY21 primarily due to an increase in Futures client
activity driven by volatility across commodity markets.
Net operating lease income of $A335m, down 13% on FY21 due to a reduction in secondary income in
Technology, Media and Telecoms and the impact of the partial sale of the UK Meters portfolio of assets,
partially offset by an increase in income from other areas of the Macquarie Energy, Resources &
Sustainability portfolio.
Investment and other income of $A670m, up significantly on FY21 largely driven by the gain on partial sale
of the UK Meters portfolio of assets.
Decrease in credit and other impairment charges driven by partial release of COVID-19 overlays. Credit
provisioning levels remain prudent with the combined downside macroeconomic scenarios having a higher
weighting than the upside scenario
Brokerage, commission and fee expenses of $A389m, in line with the prior year.
Other operating expenses of $A1,879m, up 11% on FY21 driven by higher expenditure on technology
platform and infrastructure and increasing compliance and regulatory management spend.
1. Includes internal net interest expense and transfer pricing on funding provided by Group Treasury that is eliminated on consolidation in the Group's statutory P&L. 2. Generated from Asset Finance. 3. Includes net income on equity, debt and other investments, share of net profits from associates
and joint ventures, internal management revenue and other income.
O Macquarie Group Limited
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