Company profile

Macquarie Group (Macquarie) is a global provider of banking, financial, advisory, investment and funds management services.

Macquarie’s main business focus is making returns by providing a diversified range of services to clients. Macquarie acts on behalf of institutional, corporate and retail clients and counterparties around the world.

Macquarie Group Limited is listed in Australia (ASX:MQG; ADR:MQBKY) and is regulated by APRA, the Australian banking regulator, as the owner of Macquarie Bank Limited, an authorised deposit taker. Macquarie also owns a bank in the UK, Macquarie Bank International Limited, which is regulated by the FSA. Macquarie's activities are also subject to scrutiny by other regulatory agencies around the world.

As an owner and manager of significant community assets, Macquarie works closely with governments around the world to deliver important services including transport, roads, airports and utilities. Specialist funds which manage these assets contributed approximately 12 per cent of Macquarie’s total underlying operating income for the half year ended 30 September 2009.

Macquarie’s approach to risk management is long-standing. Strong risk management practices are embedded in business unit management with central oversight of credit, market, funding, compliance and operational risk. These, together with committed, quality staff are key drivers of Macquarie’s success.

Founded in 1969, Macquarie operates in more than 70 office locations in 28 countries. Macquarie employed more than 12,700 people and had assets under management of $A216 billion at 30 September 2009.

Corporate restructure

On 13 November 2007, Macquarie was restructured following shareholder approval for the creation of Macquarie Group Limited, a non-operating holding company and the ultimate listed parent for the Macquarie Group (ASX: MQG).

Macquarie Group Limited comprises businesses across a range of investment, commercial and selected retail financial services. Prior to the restructure, Macquarie Bank Limited (MBL) was the listed parent of the Macquarie Group. MBL is now a subsidiary of Macquarie Group Limited and remains regulated by the Australian Prudential Regulation Authority (APRA) as an Authorised Deposit-Taking Institution (ADI). Macquarie Group Limited is licensed by APRA as the non-operating holding company of an ADI.

Management approach

Macquarie's strength lies in its unique structure and management style which enables businesses to exercise significant operating freedom balanced by limits on risk and observance of professional standards - this is referred to as 'freedom within boundaries'.

Macquarie's management approach fosters an entrepreneurial culture among staff. Strong prudential management is fundamental to this approach. The focus of central management is on risks to Macquarie arising from market and industry influences and issues of medium and long-term significance.

Other core elements of Macquarie's approach are:

• Encouraging high ethical and professional standards
• Commitment to clients
• Commitment to growth
• Recruiting, retaining and motivating quality staff
• Aligning staff rewards with those of shareholders
• Transparent and comprehensive reporting; including financial reporting and risk reporting.

Macquarie organises its activities into five operating groups and two divisions:

Groups

• Banking and Financial Services Group (BFS)
• Fixed Income, Currencies and Commodities (FICC)
• Macquarie Capital (MacCap)
• Macquarie Funds Group (MFG)
• Macquarie Securities Group (MSG)

Divisions

• Corporate and Asset Finance (CAF)
• Real Estate Banking Division (REB)

Each group or division specialises in defined product or market sectors.