Marex reported strong financial results for the full year 2023 and the first quarter of 2024. Revenue increased by 75% to $1.245 billion, while pretax profit surged by 44% to $141 million.
For the three months ending in March 2024, the group saw a 12% revenue growth and a remarkable 141% month-on-month increase in pretax profit.
This impressive performance is attributed to product and geographical expansion.
Ian Lowitt, the Group Chief Executive Officer, commented: “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.”
He added, “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 growth was also bolstered by selective acquisitions, such as integrating the ED&F Man Capital Markets division and acquiring Cowen’s prime broking business.
This expansion led to a significant increase in client activity, with total trades executed rising by 122% and contracts cleared by 245% in 2023.
Average client balances grew by 45% to $13.2 billion, and environmental businesses saw robust revenue growth, up by 74%.
Across its segments, Marex showed strong performance. Clearing reported an 87% increase in revenue, driven by higher net commission income.
Agency and Execution saw a notable 135% revenue expansion, fueled by favorable conditions in energy markets and strategic acquisitions.
However, Market Making experienced an 11% revenue decline due to normalized volatility levels and higher liquidity costs.
Hedging and Investment Solutions achieved a 28% revenue rise, and Corporate revenue, primarily from net interest income, surged by 509%, highlighting the robust financial performance across segments.