2023 Brings 35% Profit Growth For Citadel Securities In The UK
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The UK branches of the American trading company, Citadel Securities (CS), have shared their financial results for 2023. Together, their profit went up by 35% from the year before.
Two new reports from Citadel Securities Group’s companies were submitted to the UK’s Companies House: Citadel Securities Finance (UK) Limited and Citadel Securities (Europe) Limited.
Earnings For Citadel Securities Europe Dropped To $432 Million
Citadel Securities Europe works mainly on providing liquidity and handling markets in stocks and futures. It also offers trading tools and manages portfolios for other companies in the group.
Revenue reached $432 million, less than the $499 million recorded the previous year. Even though the company’s spending was lower, its total income went down a bit, coming to just under $113 million. This was a small drop of about 0.5% from 2023.
The report explained that this fall in income and spending was expected because of a change in the company’s structure. All the workers employed by the firm moved to other companies that are part of the CS Group.
The drop in revenue was balanced out by a rise in trading income, which came from more trading happening in important markets for Citadel Securities Europe. Last year, the company’s operating profit increased to $151 million.
On the other hand, Citadel Securities UK focuses on putting resources into financial markets for its account. It also offers cash and treasury services for the organizations within the group.
The company’s data showed that its total income stood at $1.8 billion, compared to the previous year which was $1.2 billion. Operating costs went up to $906 million from $520 million. Even though its costs were higher, the firm’s total income increased by more than 35%, reaching $790 million. This was a rise from $575 million in 2023.
Combined Profits Of Both UK Branches Exceeded $900 Million
In a report, the firm said this improvement in trading led to an increase in shareholders’ equity to $1.9 billion, and its long-term debt, including interest, went down to $9.5 million.
The combined profits of both Citadel Securities UK branches, which shared their results recently, added up to over $900 million.
In 2023, the US Securities and Exchange Commission (SEC) fined Citadel Securities $7 million for breaking rules about short-selling. The SEC found that the company did not properly label sale orders as short, long, or short-exempt for five years.
The investigation found that there were millions of orders that were marked wrong, with short sales labeled as long sales and vice versa. This mistake happened because of a coding error in the firm’s automated trading platform. To make things worse, the company unknowingly gave this incorrect data to governing authorities, including the SEC.
