2015 in review


Macquarie Group

$A1.6 billion net profit 

Up 27% on FY14

$A5.02 earnings per share 

Up 31% on FY14

$A3.30 dividends per share 

Up 27% on FY14

14% return on equity 

Up from 11.1% in FY14

Chairman and Managing Director's update

Macquarie Group full year result - CEO overview
08 May 2015

Nicholas Moore, Macquarie Group CEO, discusses the group’s result for the full year ended 31 March 2015.

Letter from the Chairman and Managing Director

The Chairman and Managing Director report on a year of continued strong performance.

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Our evolving business

The evolution of our business has been a key factor in Macquarie’s 46 years of unbroken profitability and our strong returns to shareholders.

$A9.3 billion

record operating income

70%

international income1

$A486 billion

assets under management

39%

total shareholder return over FY15, 111% over five years

Operating group highlights

Macquarie Asset Management

Top 50 global asset manager with $A484 billion of assets under management.

Net profit contribution of $A1.45 billion, 38% increase.

Highlights of the year:

  • 14% increase in total assets under management
  • strong performance fees across the business
  • raised $A8.3 billion in new equity globally for infrastructure and real asset investments
  • invested $A6.2 billion in infrastructure and real assets globally
  • strong positive net inflows in Australian wholesale and US mutual funds, $A6 billion in new funded institutional mandates 
  • global Fund Manager of the Year (Infrastructure Investor Magazine)
  • six 2015 Lipper Awards in US and Asia
  • growing infrastructure debt platform.

Read more about Macquarie Asset Management

Established in 2004, the first Macquarie European Infrastructure Fund is reaching maturity. Its portfolio companies are being progressively sold in transactions to match them with the right buyers at the right time, deliver returns to investors and ensure these important community assets remain sustainable over the long term.

One of the fund’s original investments – Sweden’s Arlanda Express train link – was one of four portfolio companies to be sold in the year ended 31 March 2015.

Corporate and Asset Finance

Manages a $A28.7 billion portfolio of loans and leases, specialising in corporate and real estate lending and asset financing.

Net profit contribution of $A1.1 billion, 35% increase.

Highlights of the year:

  • signed a $US4 billion aircraft portfolio acquisition agreement
  • lending portfolio up 24% to $11.2 billion, with portfolio additions of $A4.7 billion for the year comprised of new primary financings and secondary market loan acquisitions across various corporate and real estate transactions
  • motor vehicle leasing portfolio continued to grow, now more than 300,000 contracts
  • expanded energy asset portfolio: largest deregulated traditional and smart meter provider in the UK with over 7 million meters; commenced financing solar energy assets in Australia.

In March 2015, Macquarie entered into an agreement to acquire a $US4 billion aircraft operating lease portfolio from AWAS Aviation Capital Limited. The portfolio comprises 90 modern, current-generation commercial passenger aircraft leased to 40 airlines and will add to the 128 aircraft in the existing lease portfolio.*

 

*Lease portfolio figure current as at 31 May 2015  

Banking and Financial Services

Macquarie’s retail banking and financial services business, providing a range of personal banking, wealth management and business banking products and services.

Net profit contribution of $A285 million, 10% increase.

Highlights of the year:

  • 1.1 million Australian clients
  • $A24.5 billion Australian mortgage portfolio, 1.7% market share
  • 19% growth in platform assets under administration
  • 27% increase in business banking loan portfolio
  • $A37.3 billion in retail deposits, 12% increase.

Read more about Banking and Financial Services

Macquarie became credit card issuing partner for the Woolworths Money Everyday and Woolworths Money Qantas Credit Cards in May 2014. We are working with Woolworths Money to continue providing its customers with great value and innovative offers. We have significant relationships with some of Australia’s leading brands, working with them to provide banking products that help unlock the full potential of the relationships they have with their customers. 

Macquarie Securities Group

Global institutional securities house with strong Asia-Pacific foundations covering sales, research, equity capital markets, execution and derivatives activities.

Net profit contribution of $A64 million, down from $A107 million in prior year.

Highlights of the year:

  • No. 1 in Australia for Initial Public Offerings (Dealogic, Thomson CY14)
  • maintained leading position in Australian equities (Peter Lee Associates Survey, 2014)
  • covering more than 2,300 stocks globally
  • increased access for clients to Chinese market
  • leading warrant issuer in Asia by coverage
  • launched Malaysian structured warrants business.

Read more about Macquarie Securities Group

China equity markets are surging as a result of aggressive credit easing and financial reform aimed at liberalising capital markets. In November 2014, China launched the Shanghai-Hong Kong Stock Connect. These two exchanges have a combined market capitalisation of greater than $US5 trillion making it the third largest market in the world. Macquarie offers clients the ability to trade eligible China listed shares in this significant and growing market. Our equities team in Shanghai also produce differentiated on-the-ground thematic equity research for our institutional clients. 

Macquarie Capital

Global corporate finance capability, including mergers and acquisitions (M&A), debt and equity capital markets, and principal investments.

Net profit contribution of $A430 million, 54% increase.

Highlights of the year:

  • advised on 470 transactions worth $A141 billion
  • No.1 for Australian M&A (announced and completed by number. Dealogic, Thomson CY14.)
  • maintained leading market position for IPOs in Australia and New Zealand, including advising on Medibank Private and Healthscope IPOs
  • significant cross-border transactions in Asia, including advising Emperador for its acquisition of Whyte & Mackay from United Spirits for £430m
  • continued momentum in the Americas, including $US11 billion Freeport LNG capital raising
  • strengthened position in infrastructure, German mid caps and other niche sectors in Europe, the Middle East and Africa.

Read more about Macquarie Capital

Freeport LNG is constructing a liquefied natural gas (LNG) export terminal at its pre-existing LNG import terminal site in Texas, United States. The project, consisting of three trains, will transform Freeport LNG's business into a large scale bi-directional facility. Acting as adviser and debt and equity arranger on the project financing, Macquarie Capital raised $US11 billion for the first two trains. It was the largest non-recourse construction project finance transaction globally in 2014. Macquarie’s involvement in the project resulted from our expertise in the global energy and infrastructure sectors and our deep insight into US gas and international LNG market. Macquarie’s Commodities and Financial Markets group provided initial development capital to Freeport in the early stages of the project. 

Commodities and Financial Markets

Provides clients with risk and capital solutions across physical and financial markets.

Net profit contribution of $A835 million, 15% increase.

Highlights of the year:

  • strong results across the energy platform, particularly from global oil and North American gas businesses
  • fee realised from Freeport LNG Terminal
  • ranked by Platts as No.3 physical gas marketer in North America
  • growth in base metals platform
  • increased client volumes in fixed income and currencies
  • increased transaction flows across securitisation and Debt Capital Markets

Read more about Commodities and Financial Markets

Macquarie has been active in wholesale energy markets for more than 10 years and provides a full spectrum offering to clients with exposure to the energy sector.

We provide services to a range of customers across the oil value chain - from production, to refining, to consumption - trading and marketing more than 100,000 barrels of North American crude per day.

Board update

Gordon Cairns was appointed to the Macquarie Group and Macquarie Bank Boards as a Non-Executive Director on 1 November 2014. Mr Cairns has held a wide range of management and executive roles throughout his career. 
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Long standing board members, Helen Nugent and Peter Kirby retired from the Boards of Macquarie Group and Macquarie Bank on 24 July 2014. The Board thanked Helen and Peter and wished them the best for their future. 
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Read more about Macquarie’s leadership and corporate governance

Non-Executive Director Gordon Cairns, appointed 1 November 2014

In the community

Macquarie Group Foundation 2:15
Macquarie Group Foundation update

08 May 2015

In the year to 31 March 2015 the Macquarie Group Foundation and staff contributed more than $A24 million to 1,300 organisations globally, with Macquarie staff also donating 33,000 hours of their time. Foundation Head Lisa George discusses Macquarie’s philanthropy over the past year and outlines some initiatives for the year ahead.

2015 Annual Report

The Annual Report contains the Operating and Financial Review, Corporate Governance Statement, Macquarie Group Foundation Review, Diversity Report, Risk Management Report, Environmental Social and Governance Report, Directors’ Report including the Remuneration Report and full financial statements for Macquarie Group for the financial year ended 31 March 2015.

Additional information

Annual General Meeting

The 2015 Annual General Meeting will be held at 10:30am on Thursday 23 July 2015 at the Sheraton on the Park, 161 Elizabeth Street, Sydney.

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Investor information

Key dates

2 July Final ordinary dividend paid

23 July Annual General Meeting

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