Investor Presentaiton
Macquarie | Presentation to Investors and Analysts I macquarie.com
Overview of Macquarie
Operating Groups
3Q20 Update
Outlook
Appendix
Commodities and Global Markets
Result
O
MACQUARIE
- Commodities income of $A1,049m, up 30% on 1H19
- Risk management products up 38% on 1H19 reflecting strong results across the commodities platform particularly in
Global Oil, North American Gas and Power and EMEA Gas and Power from increased client hedging activity as a
result of commodity price volatility. Solid contribution from Agriculture, Metals and Mining
- Lending and financing reduced 10% driven by a reduction in agricultural loans and reduced activity in gas and power
sectors
- Inventory management and trading up 37% on 1H19 primarily driven by the timing of income recognition on storage
and transport for Oil and Gas contract agreements partially offset by reduced contributions from North American Gas
following a strong prior corresponding period driven by demand and supply factors in specific American regions
Foreign exchange, interest rates and credit income of $A345m, up 19% on 1H19 driven by increased client activity
across the platform in all regions
1H20
2H19
1H19
• Net interest and trading income of $A1,688m, up 24% on 1H19
$Am
$Am
$Am
Commodities
1,049
1,177
806
Risk management products
632
621
457
Lending and financing
115
122
128
Inventory management and trading
302
434
221
Foreign exchange, interest rates and credit
345
273
291
Equities
216
79
163
Specialised and Asset Finance
78
54
97
Net interest and trading income¹
1,688
1,583
1,357
Fee and commission income
606
611
611
Net operating lease income²
157
153
132
60
83
69
(35)
(147)
(18)
Investment and other income³
Credit and Other impairment charges
Net operating income
Brokerage, commission and
trading-related expenses
Other operating expenses
Total operating expenses
Non-controlling interests
Net profit contribution4
Headcount
2,476 2,283 2,151
(320)
(257) (316)
(1,081) (1,087) (966)
(1,338) (1,403)
(1,286)
(1)
(1)
1,138
2,816
879
2,866
864
2,786
Equities up 33% on 1H19 reflecting increased opportunities in China and improved conditions for retail products across
Asia
Specialised and Asset Finance interest and trading income down 20% on 1H19 driven by lower secondary income from
equipment finance lease portfolio within Technology, Media and Telecoms (TMT), increased funding costs from growth
in the TMT operating lease portfolio and a decline in the non-core legacy retail portfolio which is partially offset by
favourable foreign exchange movement
⚫ Fee and commission income of $A606m, down 1% on 1H19 due to a reduction in brokerage due to reduced Cash Equities
turnover offset by increased contribution from Index products and retail products in the technology sector
Net operating lease income of $A157m, up 19% on 1H19 driven by higher secondary income from Technology, Media and
Telecoms portfolio. The Energy portfolio contributes the majority of operating lease income and was stable over the period
• Credit and Other impairment charges of $A35m, up 94% on 1H19 mostly due to the write-downs on specific
underperforming financing facilities and impairment charges related to a small number of commodity equity positions
Brokerage, commission and trading-related expenses of $A257m, down 20% on 1H19 due to a reduction in the
equities sector
• Total other operating expenses of $A1,081m, up 12% on 1H19, driven by expenditure on upgrading technology
infrastructure and increased compliance costs as well as an increase in average headcount in comparison to prior
corresponding period
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 Specialised and Asset Finance. 3. Includes net income on equity and debt investments, share of net profits of
associates and joint ventures, internal management revenue/(charge) and other income. 4. Management accounting profit before unallocated corporate costs, profit share and income tax.
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