Marex Group reported its best financial performance for the year 2022.
Net revenue for 2022 rose by 29% to $701.5 million, and adjusted operating PBT increased by 53% to $121.7 million.
This impressive growth was mainly due to greater client involvement in the international market and successful business operations in the fundamental energy and commodity markets. The procurement and combining of ED&F Man Capital Markets also made an impact on the last quarter of the year.
Segregated client money significantly rose to $12.9 billion as of the end of 2022 (2021: $5.4 billion).
Market Making revenues rose 23% from $131.1 million to $161.3 million, thanks to greater market volatility and better economic conditions, especially in the energy sector. Clearing revenues increased 58% to $214.4 million due to increased customer activity and higher interest income on client funds.
Hedging and Investment Solutions saw a 14% increase in revenue, reaching $99.8 million, as clients sought Marex’s customized commodity hedging services, despite having reduced interest in investment solutions.
Agency and Execution revenues rose by 21%, reaching $226.0 million (2021: $187.3 million). This was due to the favorable market environment, with higher volatility bringing more activity in the energy markets and the addition of ED&F Man Capital Markets securities revenues in the final quarter of the year.
Marex CEO, Ian Lowitt, said:
We are delighted with these record results. The strong revenue growth reflects the increasing demand from our clients, who recognise our deep expertise and ability to deliver quality service and solutions.
“We remain focused on our strategic growth initiatives, which are diversifying our business by adding products to our service segments and expanding geographically. A particular highlight this year has been the acquisition of the ED&F Man Capital Markets business, which materially expands our footprint, expertise and clients across the world. This is a very exciting time for Marex, and I’d like to thank our people for their commitment to delivering excellent service for clients through a volatile year. The outlook for Marex is very positive, we have had a strong start to 2023 and I am confident that we can continue to deliver sustainable growth and build an even more diversified, resilient and dynamic firm.
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