Interim Review


Half year ended 30 September 2015

$A1.07 billion net profit

Up 58% on 1H151

$A5.3 billion operating income

Up 24% on 1H15

$A3.25 earnings per share

Up 53% on 1H15

$A1.60 dividends per share

Up 23% on 1H15

CEO overview

Macquarie Group 1H16 result 03:34
Macquarie Group 1H16 result

30 Oct 2015
Macquarie Group

Nicholas Moore, Macquarie Group CEO, discusses the group’s result for the half year ended 30 September 2015.

71%

international income2

$A504 billion

assets under management

15.8%

annualised return on equity

Operating group highlights

Macquarie Asset Management

Top 50 global asset manager with over $A502 billion of assets under management.

Net profit contribution of $A1.1 billion, 45% increase on 1H15. 

Highlights of the half year: 

  • 4% increase in total assets under management since 31 March 2015
  • strong performance fees across the business
  • raised $A1.3b in new equity globally for infrastructure and real asset investments
  • invested $A2.5b in infrastructure and real assets globally
  • strong performance across a range of asset classes including Australian equities, Asian equities, US equities as well as affiliated managers
  • continued to grow the Macquarie Infrastructure Debt Investment Solutions (MIDIS) business
  • recognised as world’s largest manager of infrastructure and third largest manager of pension fund assets invested in alternatives (Towers Watson in conjunction with The Financial Times)

Read more about Macquarie Asset Management

Moto is the UK’s largest motorway service area operator. Since 2006, Macquarie Infrastructure and Real Assets (MIRA) has managed Moto on behalf of a consortium of investors. MIRA steered the business through the financial crisis, undertaking a number of key initiatives to support the reinvigoration of the estate. This included strong investment in the customer experience, including the roll-out of trusted brands such as Marks & Spencer, Costa Coffee, Burger King and Greggs. These initiatives increased sales while reducing dependence on lower-margin fuel transactions, and enhanced Moto’s ability to generate strong, stable cash flows. 

Now a prized business in a growing sector, the sale of Moto in October delivered an annual return of more than 25 per cent.

Corporate and Asset Finance

Manages a $A32.3 billion asset and loan portfolio, specialising in corporate and real estate lending and asset financing.

Net profit contribution of $A611 million, 31% increase on 1H15. 

Highlights of the half year: 

  • lending portfolio of $A11.0b, with portfolio additions of $A1.7b for the half-year comprised of new primary financings and secondary market loan acquisitions across various corporate and real estate transactions
  • aircraft leasing portfolio now includes 39 of the 89 aircraft committed to purchase from AWAS
  • motor vehicle leasing portfolio continued to grow, now more than 310,000 contracts
  • acquired Advantage Funding, a specialty vehicle financier based in the US
  • post balance date (October), entered into an agreement to acquire the Esanda dealer finance portfolio from ANZ Bank for $A8.2b.

Macquarie continues to finance the development of UK energy infrastructure, including renewables. During the half year, Macquarie commissioned and financed 2,277 individual rooftop solar sites across the UK, bringing the total portfolio to 8,770 sites. It also provided investment capital and financing to Energetics UK, enabling it to complete 11,200 electricity and gas connections for new homes across the UK. Energetics has become a leading provider of multi-utility (gas and electricity) connections in the UK, with an installed base of over 106,000 residential connections.

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 $A170 million, 21% increase on 1H15. 

Highlights of the half year: 

  • 1.1 million Australian clients
  • $A27.6b Australian mortgage portfolio, representing approximately 1.8% of the Australian market
  • $A46.7b Macquarie platform assets under administration
  • 13% increase in business banking loan portfolio
  • BFS deposits3 of $A38.7b, 4% increase since 31 March 2015
  • awarded iSelect’s Partner of the Year and Home Loans Partner of the Year 20154
  • post balance date (October), launched Macquarie savings and transaction accounts.

Read more about Banking and Financial Services

Macquarie’s new transaction and savings accounts, launched as part of our everyday banking offering, provide a fully integrated retail banking and wealth experience for our clients and partners. 

These new accounts are supported by an intuitive digital banking platform, mobile app and one of the largest ATM networks in Australia. They complement our range of retail financial products including mortgages, credit cards, deposits and wealth management, and round out our full service offering to our retail clients.

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 $A240 million, up from $A17 million in 1H15. 

Highlights of the half year: 

  • No.1 for IPOs by value in Australia (Dealogic and Thomson, CY15)
  • No. 2 globally for client satisfaction in the CIO 2015 Transition Management Survey5
  • increased access for clients to Chinese stock markets
  • No.1 market share in listed warrants in Singapore and Malaysia, No.3 in Thailand (local exchanges).

Read more about Macquarie Securities Group

Complementing our on the ground research excellence in over 20 markets, our 200+ analysts collaborate across the globe to offer clients a wide array of quality-driven thematic reports. Our research draws on our expertise in numerous sectors, including; commodities, infrastructure, energy, technology, small-mid cap, quant and consumer. 

In 2015, Macquarie Securities Group released comprehensive thematic research analysing the changing global TV, media and telecommunications landscape due to the rapid adoption of video platforms such as Netflix, and the impacts on content, media and network infrastructure. Other thematic campaigns included the robotic revolution in textile production; demographic trends in ASEAN; the potentially exaggerated decline of fossil fuels; and a comprehensive fact book on the China A-share market.

Macquarie Capital

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

Net profit contribution of $A170 million, 13% increase on 1H15. 

Highlights of the half year:

  • advised on 208 transactions worth $A116b
  • No.1 for M&A for announced and completed deals in Australia, by number and value (Dealogic and Thomson, CY15)
  • No.1 for IPOs in Australia, by value (Dealogic and Thomson, CY15)
  • joint lead manager and joint underwriter on National Australia Bank's $A5.5b accelerated renounceable entitlement offer
  • continued momentum in the Americas, including acting as financial adviser, debt and equity arranger to Freeport LNG on its $US4.6b project financing of Train 3 of its Liquefaction and Export Project.

Read more about Macquarie Capital

A consortium comprising private equity funds managed by Brookfield Asset Management and Macquarie Capital acquired Apache Corporation’s Western Australian oil and gas assets for $US2.1 billion. Renamed Quadrant Energy, the business is Australia’s third largest oil and gas producer. 

The acquisition comprised a portfolio of producing oil and gas assets, as well as an extensive exploration portfolio situated largely in the Carnarvon Basin. The consortium drew support from the broader Macquarie Group to put in place appropriate hedging arrangements in a period of high volatility in global oil prices. This transaction highlights our ability to assess the energy market for high quality portfolio opportunities of scale, and use our capital flexibility to work quickly,  providing beneficial solutions to all parties.

Commodities and Financial Markets

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

Net profit contribution of $A282 million, 13% increase on 1H15. 

Highlights of the half year: 

  • strong results across the energy platform, particularly from Global Oil and North American Gas and Power businesses
  • improved levels of client activity across Agriculture and Base Metals 
  • volatility in foreign exchange and interest rate markets resulted in increased client volumes
  • expansion of European utilities futures business in continental power, gas and emissions
  • ranked by Platts as No.3 physical gas marketer in North America.

Read more about Commodities and Financial Markets

Macquarie has been active in agricultural markets for more than 20 years. The full spectrum offering includes financing, liquidity risk management, structured finance and physical solutions for producers, consumers, trade houses and investors. 

Our agricultural commodities capabilities include sugar, grains and oilseeds, meat and livestock, coffee and cocoa, cotton, ethanol, freight, fertilisers, dairy and packaging exposures like paper/pulp and resins.

We also provide institutional investors with access to commodity-based index products.

Board update

In September it was announced that Peter Warne will succeed Kevin McCann as Chairman of the Macquarie Group and Macquarie Bank Boards on his retirement, effective 31 March 2016. Peter has been an Independent Voting Director of the Macquarie Group and Macquarie Bank Boards since 2007.

Read more

Read more about Macquarie’s leadership and corporate governance

2016 Interim Financial Report

The Interim Financial Report contains the Director’s Report, including a review of operations and the financial result,  and the full financial statements for Macquarie Group for the half year ended 30 September 2015.

Additional information

Investor information

Key dates

Nov 09 Ex-dividend date for 1H16 ordinary interim dividend
Nov 11 Record date for 1H16 ordinary interim dividend 
Dec 16 Payment date for 1H16 ordinary interim dividend