Investor Presentaiton
Overview of Macquarie
Operating Groups
Income statement key drivers
1Q23 Update
2H22
1H22
FY22
FY21
.
$Am
$Am
$Am
$Am
Net interest and trading income
3,824
3,032
6,856
5,677
Fee and commission income
3,435
3,452
6,887
5,176
Partially offset by:
Net operating lease income
216
186
402
466
Share of net profits/(losses) from
(2)
242
240
(3)
associates and joint ventures
Net credit impairment charges
(74)
(176)
(250)
(434)
Other impairment charges
(205)
(54)
(259)
(90)
Investment income
2,297
994
3,291
2,023
Other income and charges
29
128
157
(41)
Net operating income
9,520
7,804
17,324
12,774
Employment expenses
(3,561)
(3,164)
(6,725)
(5,517)
Brokerage, commission and fee
(531)
(498)
(1,029)
expenses
Other operating expenses
(1,624)
(1,407)
(3,031)
Total operating expenses
(5,716)
(5,069)
(10,785)
(879)
(2,471)
(8,867)
Partially offset by:
Operating profit before tax and
3,804
2,735
6,539
3,907
non-controlling interests
Income tax expense
(983)
(603)
(1,586)
(899)
(Profit)/Loss attributable to non-
(158)
(89)
(247)
7
controlling interests
Profit attributable to MGL
2,663
2,043
4,706
3,015
shareholders
O Macquarie Group Limited
Outlook
Appendix
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•
•
Net interest and trading income of $A6,856m, up 21% on FY21
Higher commodities income mainly driven by increased risk management income with gains across the
platform, particularly from Gas and Power, Resources, Agriculture, and Global Oil in CGM
Growth in the private credit portfolio in Macquarie Capital
Growth in the average loan portfolio and average deposit volumes in BFS
lower income in Corporate due to accounting volatility from changes in the fair value of economic hedges
the impact of fair value adjustments across the derivatives portfolio in CGM
Fee and commission income of $A6,887m, up 33% on FY21
MAM included higher base fee income primarily driven by the acquisition of Waddell & Reed and a
disposition fee from MIC
Higher mergers and acquisitions fee income and debt capital markets fee income in Macquarie Capital
Partially offset by:
•
lower performance fees in MAM following a strong prior year
lower equity capital markets fee and brokerage income in Macquarie Capital
Share of net profits from associates and joint ventures of $A240m, significantly up from FY21, primarily
driven by increased equity accounted income from MIC and lower equity accounted losses in Macquarie
AirFinance in MAM
Decrease in credit and other impairment charges of $A15m driven by the partial release of COVID-19
overlays in BFS and CGM. Credit provisioning levels remain prudent with the combined downside
macroeconomic scenarios having a higher weighting than the upside scenario
a small number of underperforming equity investments in Macquarie Capital
Investment income of $A3,291m, up 63% on FY21 due to substantially higher revenue from material asset
realisations in the green energy, technology and business services sectors and included realisations across all
regions. Plus the gain on the partial sale of the UK Meters portfolio of assets in CGM. This was partially offset
by the non-recurrence of the gain on sale of Macquarie European Rail in the prior year in MAM
Total operating expenses of $A10,785m, up 22% on FY21. The increase in operating expenses was mainly as a
result of the one-off acquisition and ongoing costs related to Waddell & Reed, which had a material impact
across all operating expense categories. In addition, the current year included higher employment expenses
driven mainly by higher performance-related profit share expense and share-based payments as a result of the
performance of the Group, wage inflation and higher average headcount
Profit attributable to non-controlling interests of $A247m was primarily driven by the share of gains on
disposal attributable to non-controlling interests
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