Investor Presentaiton
Macquarie | Presentation to Investors and Analysts I macquarie.com
Overview of Macquarie
Operating Groups
3Q20 Update
Outlook
Appendix
Macquarie Capital
Result
1H20
2H19
1H19
$Am
$Am
$Am
Fee and commission income
415
497
526
Investment-related income (ex non-controlling
421
1,467
478
interests)
Investment and other income1
439
1,441
417
Net interest and trading expense²
(18)
26
61
Credit and Other impairment charges
(59)
(179)
4
Internal management revenue³
38
26
15
Net operating income
815
1,811
1,023
Total operating expenses
(593)
(569)
(504)
Non-controlling interests
Net profit contribution4
Capital markets activity5:
Number of transactions
Transactions value ($Ab)
Headcount
1
23
(10)
223
1,265
509
181
169
250
154
205
273
1,459
1,369
1,282
O
MACQUARIE
• Fee and commission income of $A415m, down 21% on 1H19 due to lower debt capital markets fee
income, down on a strong 1H19, partially offset by higher mergers and acquisitions fee income
• Investment-related income of $A421m, down 12% on 1H19
- Lower interest income from the debt portfolio
Higher share of net losses of associates and joint ventures, primarily in green energy projects in
the development and construction phases, including a small number of underperforming assets
A change in the composition of investments in the portfolio including increased expenditure in
relation to green energy projects
Partially offset by higher revenue from asset realisations in Europe particularly in green energy
• Credit and other impairment charges of $A59m, up on 1H19 due to a small number of
underperforming investments
• Total operating expenses of $A593m, up 18% on 1H19 due primarily driven by additional headcount
and the impact of foreign exchange movements
1. Includes net income on equity and debt investments, share of net losses of associates and joint ventures and other (expenses)/income. 2. 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. 3. Internal revenue allocations are eliminated on consolidation in the Group's statutory P&L. 4. Management accounting profit before unallocated corporate costs, profit share and income tax. 5. Source: Dealogic and IJGlobal for Macquarie Group completed M&A, investments, ECM and DCM
transactions converted as at the relevant reporting date. Deal values reflect the full transaction value and not an attributed value.
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