Marex Group plc(MRX) - 2024 Q3 - Quarterly Report

Revenue Growth - Revenue for Q3 2024 increased by 32% to $391.2 million compared to$ 296.6 million in Q3 2023[3] - Revenue for the Clearing business increased by 22% to $116.7 million in Q3 2024, driven by a 54% rise in net interest income[24] - Revenue for Agency and Execution increased by 30% to$ 170.4 million in Q3 2024, primarily due to the Cowen acquisition and strong organic growth[33] - Revenue for the three months ended 30 September 2024 increased by 30% to $170.4 million, compared to$ 131.3 million in the same period of 2023[36] - The company reported a 40% increase in revenue to $163.3 million for the nine months ended 30 September 2024, compared to$ 116.4 million in the same period of 2023[45] - Q3 2024 revenue increased to $16.5 million, up 33% from$ 12.4 million in Q3 2023, and 9M 2024 revenue reached $49.6 million, a 43% increase from$ 34.6 million in 9M 2023[50] Profitability - Profit Before Tax for Q3 2024 rose by 66% to $79.0 million from$ 47.6 million in the same period last year[3] - Adjusted Operating Profit for Q3 2024 increased by 52% to $80.5 million, with an Adjusted Operating Profit Margin of 21%[10] - Adjusted Operating Profit increased by 35% to$ 239.7 million in 9M 2024, with Adjusted Operating Profit Margins improving to 20% from 19% in 9M 2023[21] - Adjusted Operating Profit for the three months ended 30 September 2024 rose by 60% to $25.6 million, with an Adjusted Operating Profit Margin of 15%, up from 12% in the prior year[36] - Adjusted Operating Profit for the nine months ended September 30, 2024, reached$ 239.7 million, a 35.1% increase compared to $177.4 million for the same period in 2023[75] - The company reported a Profit After Tax Margin of 15% for the three months ended September 30, 2024, compared to 11% in the same period last year[75] Income Sources - Net commission income grew by 15% to$ 202.8 million in Q3 2024, driven by increased customer activity in Energy and Securities[12] - Net commission income increased by 20% to $630.1 million in 9M 2024 from$ 523.5 million in 9M 2023, driven by growth in Agency and Execution and the acquisition of Cowen's prime services business[17] - Net trading income rose by 21% to $364.3 million in 9M 2024 from$ 299.9 million in 9M 2023, primarily due to the Hedging and Investment Solutions business[17] - Net interest income surged by 102% to $63.5 million in Q3 2024, reflecting higher balances and reinvestment at higher yields[14] - Net interest income increased by 80% to$ 164.5 million in 9M 2024 from $91.4 million in 9M 2023, reflecting higher average investment returns and the acquisition of Cowen's prime services business[19] - Net physical commodities income surged by 381% to$ 20.2 million in 9M 2024 from $4.2 million in 9M 2023, driven by increased sales volumes in recycled metals and oil[21] Strategic Investments and Acquisitions - Marex Group announced strategic investments including the acquisition of Aarna Capital and Hamilton Court Group to expand geographic footprint and product capabilities[5] - A successful secondary equity placement resulted in the issuance of 9.7 million shares, increasing public float to approximately 52%[5] - The company issued$ 600 million in 5-year senior unsecured notes to diversify funding sources and enhance liquidity[5] Capital and Liquidity - Total assets rose by $1.9 billion to$ 19.5 billion as of September 30, 2024, driven by a $1.3 billion increase in cash and liquid assets[51] - Total equity increased by 24% to$ 959.8 million, up from $775.9 million, with a profit after tax of$ 161.3 million for the nine months ending September 30, 2024[53] - Cash and liquid assets grew by 31% to $5.83 billion from$ 4.47 billion at the end of 2023[53] - The Group's total capital ratio improved to 310% as of September 30, 2024, compared to 229% at the end of 2023, indicating significant capital headroom[60] - Total available liquid resources increased to $1.83 billion from$ 1.37 billion at the end of 2023[57] Dividends - A dividend of $0.14 per share is scheduled to be paid in Q4 2024[5] - An interim dividend of$ 0.14 per share was approved, expected to be paid on December 10, 2024[62] Performance Metrics - Basic Earnings per Share for the nine months ended September 30, 2024, was $2.20, an increase of 40.1% from$ 1.57 in the same period in 2023[75] - Return on Equity for the three months ended September 30, 2024, improved to 25%, compared to 18% in the same period last year[75] - Adjusted Operating Profit Margin for the three months ended September 30, 2024, was 21%, up from 18% in the same period last year[75] - Common Equity as of September 30, 2024, was $823.5 million, an increase from$ 622.0 million in the same period last year[75] Future Outlook - The company anticipates continued growth in revenue and profitability driven by market expansion and new product development initiatives[75] - Full year Adjusted Operating Profit is anticipated to be approximately $300 million to$ 305 million[65] - Reported Profit Before Tax for 2024 is expected to be approximately $277 million to$ 282 million[65]