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Investor Presentaiton

Macquarie FY20 result announcement I macquarie.com Introduction Overview of Result Result Analysis and Financial Management. Outlook Appendices Commodities and Global Markets Consistent performance driven by strong client activity $Am 2,200 Commodities ($A245m) 2,000 16 216 1,800 1,600 1,400 1,200 1,743 1,000 800 600 75 (477) (93) 111 118 37 57 1,746 400 FY19 NPC Risk management and products financing Lending Inventory FX, interest management rates and and trading credit Equities Net operating Credit and Other FY20 lease income Other impairments NPC O MACQUARIE KEY DRIVERS . Commodities Strong results across the commodities platform from increased client hedging activity particularly in Global Oil, EMEA Gas and Power, Agriculture, and Metals & Mining partially offset by the impact of fair value adjustments Higher Lending and financing income driven by increased physical oil financing activity Inventory management and trading driven by reduced opportunities in North American Gas markets following a strong FY19 partially offset by the timing of income recognition on transport agreements. 1H20 benefited from opportunities across a range of energy sectors which were partially offset by more challenging markets in Fuel oil (related to changing regulations) and North American gas markets in 2H20 Higher foreign exchange, interest rates and credit result driven by increased client activity in structured foreign exchange and interest rate products across all regions Improved Equities income due to increased opportunities in Asian markets and reduced trading losses following the structural change announced in 2H20 to refocus equities on the Asia-Pacific region ⚫ Higher net operating lease income driven by higher secondary income from the Technology, Media and Telecoms portfolio in addition to favourable foreign exchange movements • Increased impairment charges on a small number of counterparties in Futures and FI&C, together with increased credit impairment charges on the performing loan and lease portfolio related to a deterioration in current and expected macroeconomic conditions as a result of COVID-19 Other includes an increase in fee and commission income from commodity related fees partially offset by a reduction in brokerage income following the structural change announced in 2H20 to refocus equities on the Asia-Pacific region 38
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