Marex Group plc (NASDAQ:MRX), a diversified global financial services platform, today announced strong results for the quarter ended 30 September 2024.
Reported Profit Before Tax increased by $31.4 million, or 66%, to $79.0 million for Q3 2024, from $47.6m in the same period of 2023 reflecting strong revenue growth at improved operating margins.
Revenue grew by 32% to $391.2 million in Q3 2024 from $296.6 million in the same period in 2023, reflecting a combination of favourable market conditions, strong underlying growth and the benefits of Marex acquisitions.
Net commission income increased by 15% to $202.8 million in Q3 2024 from $176.3 million in Q3 2023. The increase occurred mainly in Agency and Execution, which increased by 21% to $141.9m in Q3 2024 from $117.6m in Q3 2023 reflecting increased customer activity in Energy, as well as in Securities primarily driven by Marex’s acquisition of Cowen’s prime services business in December 2023.
Net trading income rose by 39% to $121.6 million in Q3 2024 from $87.4 million for Q3 2023. This was driven by Marex’s Metals business within its Market Making segment, where market conditions normalised but remained positive, and a comparatively subdued operating environment in Q3 2023. Net trading income in Hedging and Investment Solutions also increased by 12% to $45.7m in Q3 2024 as demand grew for commodity hedging and financial product services, and by 60% to $20.3m in Agency and Execution driven by increased activity in Capital Markets business.
Net interest income increased by 102% to $63.5m for Q3 2024 from $31.4m for Q3 2023. This growth reflected the benefit of higher balances, re-investment of maturing assets at higher yields and the acquisition of Cowen’s prime services business in December 2023.
Net physical commodities income increased by 120% to $3.3m for Q3 2024 from $1.5m for Q3 2023. This increase was primarily due to an increase in sales volumes from physical recycled metal and physical oil sales, driven by growth in our recycled metals business and the addition of physical oil broking capabilities.
Front office costs increased by 28% to $214.8m in Q3 2024, largely reflecting a 16% increase in average front office headcount driven by recent acquisitions, as well as organic growth.
Adjusted Operating Profit increased 52% to $80.5m for Q3 2024 from $52.9m in Q3 2023 and Adjusted Operating Profit Margins improved to 21% in Q3 2024, up from 18% in Q3 2023. In addition, as a result of the revenue, cost trends and adjusting items, Profit After Tax Margins increased to 15% in Q3 2024 from 11% in Q3 2023.
The Board of Directors approved an interim dividend of $0.14 per share, expected to be paid on 10 December 2024 to shareholders on record as at close of business on 25 November 2024.
