Marex Reports 32% Revenue Boost In Q3 With Doubling Interest Income

Marex Group reported strong results for the third quarter, with a big jump in profits and income from trading. For the three months ending in September, Marex’s revenue rose by 32%, reaching $391.2 million, up from $296.6 million in the same time last year.

According to the financial report, the company’s positive results were driven by high customer activity, especially in energy and securities. Marex noted that net trading income went up by 39%, mainly due to strong demand for hedging and investment solutions.

Marex Added To Its Capital And Funding Sources With A Successful Debt Issuance

Ian Lowitt, Marex’s Group Chief Executive Officer, commented on the results, saying the company has been investing to grow its global reach. He said Marex has expanded its services and areas of operation, aiming to attract new clients and offer more to existing clients.

Marex also grew its capital base and added new funding sources with a successful debt issuance. Lowitt stated that the recent share placement had strong investor interest, which brought more liquidity to Marex’s stock.

The company also bought Cowen’s prime services business to strengthen its agency and execution services. This move reportedly increased Marex’s net commission income by 15%, reaching $202.8 million. In addition, net interest income doubled, going from $31.4 million to $63.5 million, as the company reinvested assets at higher returns.

Marex continues to grow by acquiring other businesses. It entered the Middle East market by acquiring Aarna Capital and improved its FX (foreign exchange) services by buying Hamilton Court Group. As of September 30, 2024, Marex’s total assets rose to $19.5 billion, a $1.9 billion increase from the end of 2023.

In response to these positive results, Marex’s Board approved a dividend of $0.14 per share, which will be paid on December 10, 2024, to shareholders recorded by November 25.

For the first nine months of 2024, Marex saw a 39% increase in pre-tax profits, reaching $218 million, up from $157.1 million during the same time last year. Revenue for the year so far went up by 28%, hitting $1.18 billion, with strong growth in commission and trading incomes.

Third-Quarter Adjusted Operating Profit Reached $80.5 Million

The company reported an Adjusted Operating Profit of $80.5 million for the third quarter of 2024, up 52% from the same quarter in 2023. This growth also improved Marex’s operating margins, which increased from 18% to 21%.

Following these results, Marex updated its full-year profit forecast, now expecting an Adjusted Operating Profit of between $300 million and $305 million, up from its earlier estimate of $280 million to $290 million.

Recently, Marex also announced it would acquire Hamilton Court Group, which provides foreign exchange services to clients. This acquisition will add to Marex’s FX offerings, in line with its goal to bring in new clients and expand its services.

Hamilton Court Group, based in London, serves mostly mid-sized UK and European companies, offering a wide range of FX products from simple to complex. This deal, still subject to approval, will enhance Marex’s FX business.