2016 in review


Year ended 31 March 2016

CEO overview

Macquarie Group FY16 result 04:50
Macquarie Group FY16 result

06 May 2016
Macquarie Group

Nicholas Moore, Macquarie Group CEO and Managing Director, discusses the result for the year ended 31 March 2016.

68%

international income2

14,300+ staff

in over 28 countries3

~$A479 billion

assets under management3

14.7%

return on equity

Operating group highlights

Macquarie Asset Management

Top 50 global asset manager with approximately $A477 billion of assets under management. 

Net profit contribution of $A1,644 million, 13% increase on prior year. 

Highlights of the year: 

  • raised $A3.7 billion in new equity globally for infrastructure and real asset investments
  • invested $A4.9 billion in infrastructure and real assets globally
  • acquired two investment teams in the US
  • named Infrastructure Manager of the Year4
  • received nine Lipper Awards5
  • growing infrastructure debt platform.

Read more about Macquarie Asset Management

Macquarie Infrastructure and Real Assets (MIRA) closed its Asian infrastructure platform in February 2016, attracting $US3.1 billion in commitments from a diverse group of investors across Asia-Pacific, North America and Europe. Focusing on investment opportunities in transport, communications, utilities, power, energy and waste management assets across the region, over one third of committed funds have already been invested across six portfolio companies in four sectors. One of the initial investments was in Universal Terminal, the largest independent oil storage terminal in Singapore.

Corporate and Asset Finance

Asset and loan portfolio of over $A39 billion, specialising in corporate and real estate lending and asset financing. 

Net profit contribution of $A1,130 million, 2% increase on prior year. 

Highlights of the year: 

  • Growth in asset finance portfolio of 71% including:
    • acquisition of Esanda dealer finance portfolio from ANZ for $A8.2 billion
    • acquisition of AWAS Aviation Capital, bringing aviation portfolio assets to $A8.9 billion
    • acquisition of Advantage Funding, a specialty vehicle financier based in the US.
  • Maintained strong lending position

In October 2015, Macquarie announced the acquisition of the $A8.2 billion Esanda dealer auto finance portfolio from ANZ Banking Group. The transaction doubled the size of Macquarie’s motor leasing portfolio in the company’s largest transaction to date, and positioned Macquarie as a top three provider of auto finance to Australian car dealers.

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 $A350 million, 23% increase on prior year. 

Highlights of the year: 

  • 1.1 million Australian clients
  • $A28.5 billion Australian mortgage portfolio, representing approximately 2% of the Australian market
  • 22% growth in funds on platform
  • 15% increase in average business banking loan portfolio
  • 8% increase in total BFS deposits to $A40.4 billion. 

Read more about Banking and Financial Services

In February 2016, Macquarie entered an agreement with ANZ to provide administration services and develop a new private labelled wrap offering for ANZ’s Australia Wealth business. ANZ selected Macquarie after an extensive business and market review to ensure its offering to clients and advisers remains at the forefront of wrap capabilities, service and digitisation.

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 $A268 million, up from $A64 million in prior year. 

Highlights of the year: 

  • No.1 for IPOs by value in Australia6
  • equal 1st overall in the 2015 Peter Lee Survey of Australian Institutional Investors
  • increased ECM market share
  • received two awards from the Australasian Investor Relations Association relating to corporate access
  • ranked No.2 globally for transition management (No.1 Asia-Pacific) in the annual Chief Investment Officer Magazine 2015 Survey
  • No.1 market share in listed warrants in Singapore, No. 2 in Malaysia, No.4 in Thailand and No.5 in Hong Kong. 

Read more about Macquarie Securities Group

Macquarie is recognised as a leading provider of corporate access in Australia, bringing together institutional investors and companies from around the globe to facilitate investment in industry. In 2015 more than 42,000 connections were registered through a range of conferences, corporate days, roadshows, meetings and conference calls. Macquarie was ranked No.1 for conferences and No.1 for listed company access in the Peter Lee Survey of Australian institutional investors, and awarded Best Domestic or Offshore Equities Conference by the Australasian Investor Relations Association. The flagship of the program is the annual Macquarie Australia Conference, the largest collection of Australian companies globally and a platform for local industry leaders to present to the global investment community.

Macquarie Capital

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

Net profit contribution of $A451 million, 5% increase on prior year. 

Highlights of the year:

  • advised on 395 transactions worth $A176 billion
  • No.1 for M&A across Australia & New Zealand7
  • consolidated leading market position in Australia and New Zealand
  • advised National Australia Bank on its $A5.5 billion accelerated renounceable entitlement offer
  • joint bookrunner and placing agent for Haitong Securities Co. Ltd’s $US4.3 billion H-share placement
  • equity sponsor on KentuckyWired public private partnership (PPP), the first fibre optic PPP in the US
  • advised the Canadian Pension Plan Investment Board and Hermes Infrastructure on the £1.6 billion acquisition of a 33.3% stake in Associated British Ports, the UK’s largest port company.

Read more about Macquarie Capital

Baltic 2, an offshore wind farm located in the Baltic Sea off Germany, is the second offshore wind project by Energie Baden-Württemberg (EnBW), one of Europe’s largest energy supply companies. The project consists of 80 wind turbines producing 288 megawatts of power.

Macquarie Capital worked with EnBW to structure a transaction that met the objectives of both parties – Macquarie Capital was able to acquire a 49.89 per cent stake in this large renewable energy project while EnBW was able to retain control of the asset with no asset level debt, the first time this innovative transaction structure has been used in the German offshore wind sector.

Macquarie Capital's largest balance sheet commitment in renewable energy to date, the acquisition was funded through a combination of equity from Macquarie Capital and debt financing from a number of commercial banks.

Commodities and Financial Markets

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

Net profit contribution of $A576 million, 31% decrease on prior year. 

Highlights of the year: 

  • strong results across the energy platform, particularly from global oil and North American gas and power businesses
  • improved results across agriculture and base metals
  • strong client flows in foreign exchange and interest rates markets
  • 2015 Commodity House of the Year8
  • ranked by Platts as No.3 US physical gas marketer in North America

Read more about Commodities and Financial Markets

Macquarie is a global 24-hour full service futures broker with more than 30 years experience in the futures industry.

Our Futures division provides a full range of execution, clearing and financing solutions to corporate and institutional clients, with specialist expertise in energy, freight, grains and soft commodities. It also has a market leading position in Australian interest rate products.

During the year, the division expanded its European utilities business to include continental power, gas and emissions, and continued to gain market share in Australia and major US markets.

Board update

Independent Director Peter Warne became Chairman of Macquarie Group and Macquarie Bank on 1 April 2016 following the retirement of Kevin McCann. Peter has been an Independent Voting Director since 2007. 

Michael Hawker succeeded Peter as Chairman of the Board Remuneration Committee. 

Read more about Macquarie’s leadership and corporate governance

In the community

A record year of giving 02:57
Macquarie Group Foundation update

05 May 2016
Macquarie Group

The Macquarie Group Foundation and Macquarie staff contributed close to $A30 million to 1,500 organisations globally in the year to 31 March 2016, with staff also donating 46,000 hours of their time. 

Foundation Head Lisa George discusses Macquarie’s philanthropic efforts over the past year and outlines some initiatives for the year ahead. 

More about the Macquarie Group Foundation

2016 Annual Report

The Annual Report contains the Operating and Financial Review, Corporate Governance Summary, 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 2016.

Additional information

Annual General Meeting

The 2016 Annual General Meeting will be held at 10:30am on Thursday, 28 July 2016 at the Sheraton on the Park, 161 Elizabeth Street, Sydney. 

Investor information

Key dates

17 May Ex-dividend date for final ordinary dividend
18 May Record date for final ordinary dividend
4 July Final ordinary dividend paid
28 July  Annual General Meeting

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