Marex posted strong financial results for the full year 2023 and the first quarter of 2024. Revenue increased 75% to $1.245
billion, while pretax profit jumped 44% to $141 million. The group recorded a 12% growth in revenue for the three months ended March 2024 and a
surge of 141% month-on-month in pretax profit. The group has attributed this
impressive growth to product and geographical expansion.
Geographical Expansion Pays Off
Ian Lowitt, the Group Chief Executive Officer,
mentioned: “2023 was another exceptional year where we transformed the
scale and scope of the firm and maintained our record of delivering sequential
growth over each of the last nine years, with an Adjusted Operating Profit
compound annual growth rate of 34%. We continued to deliver on our strategy to
expand our capabilities and our geographic reach, providing our growing client
base with essential market connectivity, liquidity, and hedging solutions.”
“We also delivered a strong performance in the
first quarter of 2024, reflecting the strength and scalability of the
diversified global platform we have built. We are pleased to report profit at
the top end of the range of the preliminary results in our IPO registration
statement and significantly higher than the fourth quarter of 2023. We are
delighted to have successfully launched our IPO in April and are grateful for
the strong investor engagement and support. As we look to the second quarter, we
have seen continued positive momentum.”
Marex’s business growth and selective acquisitions,
including the integration of the ED&F Man Capital Markets division and the
acquisition of Cowen’s prime broking business, boosted the group’s financial
results.
Additionally, Marex experienced a remarkable surge in
client activity, with total trades executed increasing by 122% and contracts
cleared by 245% in 2023. Average client balances soared by 45% to $13.2
billion, reflecting growing trust and engagement, while environmental
businesses experienced robust revenue growth, up by 74% in 202.
Segment Performance Overview
Across its segments, Marex Group demonstrated strong
performance. Clearing reported revenue growth of 87%, driven by increased net commission income. Agency and
Execution experienced a notable revenue expansion of 135%, fueled by positive conditions in energy markets and strategic
acquisitions.
However, Market Making saw a revenue decline of 11%, attributed to normalized volatility levels and higher
liquidity costs, while Hedging and Investment Solutions achieved a revenue rise of 28%.
Corporate revenue, primarily from net interest income, surged by 509%,
underscoring the robust financial performance across segments.
This article was written by Jared Kirui at www.financemagnates.com.
