Marex Group Plc · NASDAQ:MRX
Marex — Q4 2024 Earnings Presentation
29 slides from Marex's earnings presentation, Apr 2, 2025
Slide 1: Diversified Resilient Dynamic: Fourth quarter and full year 2024 results
Diversified Resilient Dynamic Fourth quarter and full year 2024 results March 6, 2025
Slide 2: Disclaimer
Disclaimer Forward-Looking Statements This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements contained in this presentation that do not relate to matters of historical fact should be considered forward-looking
Slide 3: Performance highlights
Performance highlights Ian Lowitt, CEO
Slide 4: Fourth quarter and full year 2024 highlights
Fourth quarter and full year 2024 highlights • Strong Q4 performance: robust client activity and supportive market conditions drove positive momentum and strong organic growth across the business. Average invested assets grew 12% over the quarter to $15.5bn delivering net interest income of $62.6m,
Slide 5: Delivered strong performance in our key metrics
Delivered strong performance in our key metrics Revenue Adjusted Profit Before Tax1 Adjusted PAT Attributable to Common Equity1 ($m) ($m) ($m) 28% 40% Growth 1,595 42% 1,245 321 231 28% 230 163 51% 55% 326 416 81 58 53 38 2023 2024 Q4 2023 Q4 2024 2023 2024 Q4 2023 Q4 2024 2023 2024 Q4 2023 Q4 2024
Slide 6: Strong growth in market volumes across commodities and financials
Strong growth in market volumes across commodities and financials Exchange Contracts by Asset Class (bn) • Metals +23% • Energy +22% 13.7 11.5% 10.6% • Agriculture +12% 13.7 • Financials +10% 12.2 11.6 +9.6% 12.2 CAGR • Energy +17% 10.1 • Agriculture +15% • Metals +29% • Financials +23% +10.9% CAGR
Slide 7: Operating environment
Operating environment • Commodity prices and volatility were lower in 2024 • Federal Funds rate forward curve increased, now forecasting fewer rate cuts in 2025 compared to pre-US election Bloomberg Commodities Index – Implied Volatility Bloomberg Commodity Price Index Federal Funds forward curve 20
Slide 8: Increasing client activity and share gains on the Marex platform
Increasing client activity and share gains on the Marex platform (million contracts) 2023 2024 % 2024 vs. 2023 Clearing Market Volumes1 10,220 11,471 12% Marex Revenue ($m) 374 466 25% Marex Volumes 856 1,116 30% Agency and Execution - Energy Market Volumes2 1,405 1,721 22% Marex Revenue ($m) 220 28
Slide 9: 10-year track record of delivering sequential profit growth
10-year track record of delivering sequential profit growth $321 $230 CAGR: ~35% $122 Adjusted $80 Profit Before Tax ($m)1 $16 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Clients2 ~1,100 ~2,000 ~5,000 Staff3 ~570 ~730 ~2,400 Exchanges 10 48 60 Offices 8 19 >40 Note(s) (metrics as of each
Slide 10: Financial performance
Financial performance Rob Irvin, CFO
Slide 11: Financial highlights: fourth quarter and full year 2024
Financial highlights: fourth quarter and full year 2024 % % ($m) Q4 2024 Q4 2023 Change 2 2024 2023 Change 2 • Strong double digit growth in both Revenue and Adjusted Profit Revenue 415.6 325.6 28% 1,594.7 1,244.6 28% 1 Front Office Costs (231.8) (188.0) 23% (881.5) (690.4) 28% Before Tax for the fo
Slide 12: Full year 2024 performance by segment
Full year 2024 performance by segment Hedging and ($m) Clearing Agency and Execution Market Making Corporate Investment Solutions 25% 35% $466 $208 26% 28% $162 $374 $154 $695 $128 Revenue $64 $542 $48 2023 2024 2023 2024 2023 2024 2023 2024 2023 2024 Adj. PBT 50% 53% 13% 16% 22% 32% 26% 26% Margin1
Slide 13: Fourth quarter 2024 performance by segment
Fourth quarter 2024 performance by segment Hedging and ($m) Clearing Agency and Execution Market Making Corporate Investment Solutions 19% $45 20% $38 22% $40 48% $33 $14 Revenue $125 $192 $13 $158 $84 Q4 2023 Q4 2024 Q4 2023 Q4 2024 Q4 2023 Q4 2024 Q4 2023 Q4 2024 Q4 2023 Q4 2024 Adj. PBT 47% 53% 1
Slide 14: Continued growth in average balances delivering higher net interest income
Continued growth in average balances delivering higher net interest income Average balances1 Marex Net Interest Income Illustrative incremental profit due to rate sensitivity3 ($bn) ($m) ($m) +1.0% ~$20 $15.5 $227 $13.5 $13.8 $13.5 $12.9 $63 +0.5% ~$10 $11.3 $122 $64 Q4 Q3 (0.5%) (~$10) Q2 Q1 $65 (1
Slide 15: Majority of balance sheet growth supports client activity
Majority of balance sheet growth supports client activity Period End December 31, 2024 Client Activities Marex Marex Total Total Repurchase Client Residual Driven by client activity ($b) (2023) (2024) Agreements Securities Derivatives Balances (2024) Cash and Liquid Assets2 4.5 6.2 2.2 4.0 80%1 of t
Slide 16: Prudent approach to capital and liquidity underpins investment grade ratings
Prudent approach to capital and liquidity underpins investment grade ratings Regulatory Capital vs. Capital Requirement Total funding sources Total capital Liquidity $739m $1,060m 229% 234% ratio1 headroom $3.8 4 ($m) $723 ($bn) $538 $2.6 $309 $235 2023 2024 2023 2024 Capital Requirement2 Regulatory
Slide 17: Client-driven business model and robust risk management
Client-driven business model and robust risk management • Client-driven business; do not take a directional view on prices or indices, limited overnight exposure. • Continue to manage credit risk while scaling the business • Successful track record of managing credit risk, with limited provision of
Slide 18: Operational update
Operational update Ian Lowitt, CEO
Slide 19: Strong execution in 2024
Strong execution in 2024 ü Executed on growth strategy to expand product capabilities and geographic footprint, growing our client base Continued to gain market share and extended track record of profit growth ü Announced progressive dividend policy and quarterly dividend of $0.14 per share ü Increa
Slide 20: Further diversifying our revenue base with growth across all regions
Further diversifying our revenue base with growth across all regions In 2024 we increased our presence in our growth markets, the Middle East, the Americas and Asia Pacific EMEA Americas APAC +34% $885 CAGR $692 +58% $578 Revenue CAGR $458 ($m) $463 +69% $373 CAGR $206 $142 $131 $95 $27 $42 2021 202
Slide 21: Growing the number of clients on our platform and increasing share of wallet
Growing the number of clients on our platform and increasing our share of wallet In 2024 we added around 800 clients through a combination of organically onboarding of new clients and through the acquisition of TD Cowen's Prime Services business Active Clients1,2 Clients >$1m2 Clients $250k - $1m2 2
Slide 22: Continuing our growth strategy in 2025
Continuing our growth strategy in 2025 Focusing on our four interconnected services, we look to expand our geographic footprint and product capabilities increasing our relevance to a broader client base Biofuels and Biogas Middle East Americas Producers and Consumers Equity of Commodities Emissions
Slide 23: Concluding Remarks
Concluding Remarks
Slide 24: Positive momentum and executing our strategy to deliver sustainable growth
Positive momentum and executing our strategy to deliver sustainable growth Diversified and resilient business continued track record of delivering double-digit profit growth Scalable platform delivering sustainable growth and improving margins and returns Executed several growth investments in line
Slide 25: Q&A
Q&A
Slide 26: Appendix
Appendix
Slide 27: Profit Before Tax to Adjusted Profit Before Tax Reconciliation
Profit Before Tax to Adjusted Profit Before Tax Reconciliation 3 months 3 months ended 31 ended 31 Year ended 31 Year ended 31 Not December December December December Applicable ($m) 2024 2023 2024 2023 Post-IPO Profit after Tax 56.7 28.1 218.0 141.3 • IPO preparation costs primarily include legal,
Slide 28: Adjusted Sharpe Ratio (of Adjusted Profit Before Tax) Reconciliation
Adjusted Sharpe Ratio (of Adjusted Profit Before Tax) Reconciliation We define the Adjusted Sharpe ratio as the ratio calculated as the average of monthly Adjusted Profit Before Tax divided by the standard deviation of monthly Adjusted Profit Before Tax. The Adjusted Sharpe ratio is used by manageme
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