Business Description:
Macquarie Group (MQG) is Australia's leading listed investment bank. It is a provider of banking, financial, advisory, investment and funds management services. It is split into six operating groups and has offices over the world.

Strategy Analysis:
MQG's long-term strategy revolves around the provision of a full service investment banking operation in Australia and focusing on selected niche activities in international markets. In recent years strategic initiatives have concentrated on the growth of its annuity related businesses. It acquired fund manager Delaware Investments in the United States and has grown the corporate and asset finance business through both organic means and purchases of leasing portfolios. In order to improve capital efficiency and return on equity it is seeking to dispose or shut down less profitable businesses. MQG is well placed despite the current uncertainty and low confidence levels in global investment markets. Sound risk management has minimised the impact of the global financial crisis, but it is not immune to the impact of weak global markets and is currently reducing staff numbers to match weaker revenue streams. MQG has developed a strong position and capability in global investment and asset markets and services diversified markets and geographies. It will benefit from this strong global presence when markets recover. Macquarie Group reported NPAT down 24% to $305m for the half-year ended 30 September 2011. Revenues from ordinary activities were $3.24bn, down 11% from the same period last year. One of the main drivers of this decrease were an 11% decrease in fee and commission income to $1,766m for the half-year ended 30 September 2011 from $1,995m in the prior corresponding period with weak investor confidence and increased market volatility adversely impacting fee income from mergers, acquisitions, advisory and underwriting transactions as well as brokerage and commissions income. Diluted EPS was 85.3 cents compared to 117.1 cents last year. Net operating cash flow was $4.37bn compared to $1.63bn last year. The interim dividend declared was 65 cents compared with 86 cents last year.