Macquarie Group Limited and its subsidiaries  2014 Annual Financial Report  macquarie.com.au  Directors’ Report  –  Remuneration Report  for the financial year ended 31 March 2014  continued  NPAT 10 year CAGR$^{(1)}$ Macquarie versus international investment banking peers (%)  (1)  Peers comprise Barclays PLC, Credit Suisse Group AG, Deutsche Bank AG, Goldman Sachs Group Inc., Jefferies, JP Morgan Chase,  Lazard Ltd, Morgan Stanley and UBS AG. In contrast, Macquarie has not incurred a loss in any year. Merrill Lynch data has been  excluded as its NPAT data cannot be ascertained.  3.2 ROE is well above the peer average  While it is acknowledged that further improvement is possible, Macquarie’s current 11.1 per cent annual ROE has significantly  improved compared to the prior year (7.8 per cent), and is higher than all but one peer. In addition, Macquarie’s 10 year average  annual ROE is higher than all but one of its peers, despite holding relatively higher levels of excess capital. Peer ROE over 10 years FY2005–2014$^{(1)}$  Macquarie versus international investment banking peers  1 year average  %  3 year average  %  5 year average  %  10 year average  %  Macquarie  11.1 8.6 8.9  16.2  Average of Peers  8.0 6.5  6.9  9.5  Peer  4.6 2.0  0.6  6.9  Peer  1.0 1.8  7.0  13.5  Peer  6.5 5.1  9.6  10.1  Peer  1.2 3.2  6.0  7.8  Peer  11.0 8.4  11.7  16.8  Peer  8.4 9.8  9.0  8.9  Peer  28.4 22.2  11.7  n.a  Peer  4.3 2.7  2.8  8.6  Peer  6.8 3.3 3.9 3.2 Source: Peer underlying data from Bloomberg and Annual Reports. Peersare notedat the end of the next chart. 