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
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