Marex Group Ltd (MRX) 2026 Q1 法說會逐字稿

Hello, everyone. Thank you for joining us and welcome to Marex's first-quarter 2026 earnings conference call.

After today's prepared remarks, we will host a question-and-answer session. (Operator Instructions)

I will now hand the conference over to Adam Strachan, Head of Investor Relations. Please go ahead.

Good morning, everyone. Thanks for joining us today for Marex's first-quarter 2026 earnings conference call.

Speaking today are Ian Lowitt, Group CEO; and Rob Irvin, Group CFO. After Ian and Rob have made their formal remarks, we will open the call to questions.

Before we begin, I would like to remind everyone that certain matters discussed in today's conference call are forward-looking statements relating to future events; management's plans and objectives for the business; and the future financial performance of the company that are subject to risks and uncertainties.

Actual results could differ materially from those anticipated in these forward-looking statements. The risk factors that may affect results are referred to in Marex's press release issued today.

The forward-looking statements made today are as of the date of this call. Marex does not undertake any obligation to update them.

Finally, the speakers may refer to certain adjusted or non-IFRS financial measures on this call. A reconciliation schedule of the non-IFRS financial measures to the most directly comparable IFRS measures is also available in Marex's earnings release issued today.

A copy of today's release and investor presentation may be obtained by visiting the IR page of the website at marex.com.

I'll now turn the call over to Ian.

Good morning and welcome to our first-quarter 2026 earnings call. Thank you, all, for joining us today.

Q1 2026 was a record quarter for Marex, materially above our prior record in Q4 2025 and somewhat above the top end of the profit range we provided at our Investor Day on March '26.

This was a quarter of high exchange volumes and extremely elevated volatility, an environment in which we performed very strongly.

Our performance is a result of both a supportive market environment, albeit one with significant potential pitfalls; and the ongoing structural growth of our franchise, evidenced by new client acquisitions, customer-balance increases, and share gains.

As you see on slide 4, first-quarter revenues grew 48% from $467 million to $692 million. Adjusted profit before tax increased 59% to $153 million. This record performance includes the impact of a client default in January that we described at our Investor Day and which Rob will cover in his comments.

We grew EPS by 55% to $1.52, with trailing 12-month EPS of $4.66. Return on equity was very strong at 34.4%, up 570 basis points. Adjusted PBT margin was 22%, up on last year's 21%.

Importantly, and consistent with prior quarters, this performance was broad-based, with all our businesses contributing strongly.

Clearing had an outstanding quarter, with high levels of client activity and new client onboardings. Market Making benefited from the elevated volatility and performed strongly, particularly in metals and energy.

Agency and Execution also delivered a strong quarter, driven by volatility across energy and financial markets.

Prime saw some modest negative impact on client balances from lower equity markets in February. But it was still a strong quarter, up materially over last year's. Underlying client demand remains robust. Q2 balances are at record levels.

Solutions had a record quarter, driven by high levels of client activity. The investments we made in technology and platform capabilities last year are now clearly bearing fruit.

As we described on our last call and discussed at our Investor Day, Q1 was a challenging environment for managing credit exposure.

The small number of clients we mentioned who were illiquid but not insolvent, as a result of the elevated volatility and price movements, have now resolved their situations. Aside from the loss in January, we have seen no further material credit issues.

Our record performance in Q1 was a result of both the supportive market, as well as structural franchise growth.

First-quarter exchange volumes are up a lot, up 32% on Q4 and 24%, year on year. Cleared volumes in March were around 25% above the record levels in April 2025, evidencing the operational resilience of the firm and the scalability of our platform.

Volatility, as measured by the VIX, increased by 15% to an average of [20] for the quarter and [26], on average, in March.

Commodities pricing was up, on average, 13% on the fourth quarter and was over 20% higher in March, remaining at these elevated levels through April. This was a period of extremely elevated volatility within certain asset classes.

In natural gas, at the end of January, we saw multiple days of two or three standard-deviation price moves, which, together, represented a 1-in-35-year event, with prices experiencing one of the largest five-day rallies on record.

We also saw significant volatility in oil markets through March, with crude prices increasing by around 70% to well above $100 per barrel, which we navigated without any material client events.

This backdrop is supportive for the business, overall, driving higher activity in Clearing; Agency and Execution brokerage; and match principal, as well as Market Making and Solutions.

Equity markets were softer in February, which impacted Prime client balances, although overall markets remained strong over the quarter.

Interest rates also remain supportive. Against that backdrop, we grew adjusted PBT 59% year on year and 33% on Q4, demonstrating that we are growing faster than our underlying markets.

One of the clearest indications of structural franchise growth is in our Clearing client balances, which I'll cover on the next slide.

Clearing client balances grew to an average of $16 billion in the first quarter, up from $14 billion in Q4. Our run rate at the end of the quarter was above the average. This growth is a result of three effects:

First, exchange-margin requirements have risen to reflect the higher volatility. That increases balances.

Second, we continue to win new larger clients. We are already ahead of our annual target for net new balances. Our pipeline of large client opportunities for the rest of the year remains strong.

Third, some of our larger trading clients are taking advantage of the current environment and increasing their margin balances with us. We expect balances to continue to increase, although the pace will likely moderate.

Turning to Winterflood, which is included in our numbers for a full quarter for the first time within Market Making this Q1, the business has started strongly, ahead of our prior expectations. We see opportunity for margin expansion, as we scale the business.

Regulatory approval for the sale of Winterflood's custody business has been received. We expect closing in the second quarter.

Under the terms of the transaction, this will generate around $40 million of capital benefit. This will increase reported earnings for Q2 and creates equity, which will be deployed for growth.

This is another example of our disciplined approach to M&A, as we will have acquired Winterflood's Market Making capability, which is performing strongly on the Marex platform at a material discount to tangible book value.

We also completed a successful $500 million senior unsecured debt issuance, priced 50 basis points tighter than our previous deal. The deal was highly oversubscribed.

We are becoming a regular, established issuer in the US. This further diversifies our funding, while reinforcing the strength of our balance sheet.

We continue to make progress with our proposed redomiciling to Bermuda, which we expect to implement in the second half of 2026. The proposal is subject to shareholder approval at our AGM on May 21 and subject, also, to regulatory approvals.

To recap what I said at Investor Day, we believe this is the right structure for the next phase of our growth, aligning the group more closely with how the business is managed and enabling us to scale more effectively across regions.

This also helps simplify the unintended complexity that comes from being a UK-incorporated company, which is US-listed.

We're very mindful of preserving shareholder rights and protections in the new structure. Critically, there will be no change to the underlying business model or operations.

I'm pleased to share that April has continued the momentum we experienced in Q1. It is tracking above last year's April, which was a very strong month, given the Liberation Day volatility and volume spikes. We are running above February's level of $38 million but below March's exceptional $78 million.

Turning to the outlook for the full year, while individual quarters are hard to forecast, our underlying trajectory, balance growth, client wins, platform scaling, is very positive. We've had a very strong start to the year.

As a signal of the Board's ongoing confidence in our growth outlook, we have announced an increased Q1 dividend of $0.16 per share.

Now, I'll pass over to Rob to go through the financials.

Thanks, Ian. Good morning, everyone.

First-quarter revenue grew by 48% to $692 million, with growth across all of our business segments, driven by higher client activity and a supportive market environment.

Total expenses increased by 44%, reflecting the higher revenues, as well as ongoing investment to support growth, including the impact of acquisitions completed since the first quarter of 2025.

As we've said before, our cost base remains highly flexible, with around 55% of expenses variable and linked to performance.

Adjusted PBT margin expanded to 22.1%, delivering a 59% growth in adjusted PBT to $153 million. Our adjusted return on equity remained very strong at 37.4%.

We grew basic EPS to $1.52 per share, up 55% on last year's Q1. This is an excellent start to the year.

Looking at each business segment, in turn, starting with Clearing on slide 9, Clearing revenues increased by 15% to $137 million, driven by record client balances and an increase in contracts cleared, with heightened client activity throughout the quarter.

Net commission income increased 30% to $88 million, reflecting higher client activity in a volatile market, as well as our broadened product offering across the regions.

Average Clearing client balances increased to $16 billion from $12 billion in the first quarter of last year and up from $14 billion in the fourth quarter.

This reflects higher margin requirements, new client wins, and an increased activity from some of our larger trading clients, as Ian has already discussed.

The material growth in balances drove an increase in net interest income to $68 million, more than offsetting the 70 basis points reduction in average Fed funds rates year on year.

These revenue increases were partially offset by the natural-gas client default Ian mentioned, which resulted in a total loss of $34 million in Clearing.

This included trading losses of approximately $28 million, driving trading revenue to negative $18 million and a credit loss provision of approximately $6 million.

These were partially offset by lower variable compensation, around 20% within Clearing; and another 20% in control and support.

Despite this loss, our strong underlying performance meant that adjusted profit before tax still grew 2% to $58 million, reflecting continued franchise growth, including new client onboarding and strong balance growth.

Turning, now, to Agency and Execution, revenue increased 35% to $322 million, driven by broad-based revenue growth across both securities and energy.

Securities revenues increased by 42% to $214 million, driven by market-share gains in equities, increased client activities in rates, and continued momentum in FX, following the integration of Hamilton Court, which is performing very well and adding new clients.

Prime revenue grew 41% year on year, reflecting the continued strong client demand for our services. Although Prime revenue was down on the back of a very strong fourth quarter, this reflected more mixed equity markets in February, as Ian mentioned. However, our pipeline remains strong.

Energy revenue increased 20% to $106 million, reflecting strong growth across the business. Performance benefited from weather-related disruption in the US in January and heightened volatility, following the conflict in the Middle East in March, both of which contributed to record Energy revenues for the quarter.

Overall, adjusted profit before tax increased 61% to $91 million, with margins expanding to 28%, reflecting growth in higher-margin activities; particularly, Prime.

Market Making revenue grew 164% to $140 million, driven by an exceptional performance across the business, particularly in metals and energy.

Metals had a record quarter, with revenue more than doubling to $65 million, driven by increased volatility and strong client activity.

Energy revenue increased more than 3 times to $32 million, reflecting elevated hedging activity from clients, driven by volatility from the conflict in the Middle East.

Securities revenue also increased 127% to $33 million, reflecting the inclusion of Winterflood, following its completion in December, with the business performing strongly.

Adjusted profit before tax increased to $56 million, with margins expanding to 40%. A strong revenue growth more than offset higher front-office compensation and the additional headcount, following the Winterflood acquisition.

Finally, Solutions, which delivered another record quarter in Q1, revenue more than doubled to $93 million, reflecting growth across both financial products and hedging Solutions.

Hedging Solutions revenue increased to $36 million, driven by higher client demand for hedging products across both commodities and FX amid the high volatility in the market.

Financial products revenue also increased to $58 million, reflecting continued strong structured-products issuance volumes, supported by the roll-out of our new technology platform last year.

Adjusted profit before tax increased nearly threefold to $33 million, as margins improved significantly to 35%, reflecting strong operating leverage in the business.

Turning, now, to net interest income at the group level, first-quarter 2026 NII was $41 million compared to $53 million in Q1 2025, as higher interest expense more than offset the growth in interest income.

Interest income grew by $17 million, reflecting materially higher average balances of $22 billion, which more than offset a 70 basis points reduction in the average Fed funds rate.

However, higher interest expense related to the group's $500 million senior debt issuance in May 2025 and structured note issuance in Solutions brought net interest income down, overall.

As we've said previously, we continue to hold significant liquidity headroom. Whilst this creates a modest near-term headwind to group NII, it is a deliberate choice that we view as an insurance cost that strengthens the balance sheet and positions us to support clients and pursue future growth opportunities.

NII increased by $15 million compared to the fourth quarter, predominantly due to the $2 billion of growth in Clearing client balances in the first quarter.

Looking now at our balance sheet, which I covered in detail at our recent Investor Day, as you remember, one of the distinguishing features of our firm is that around 80% of our balance sheet is directly driven by clients' activity, which is highly liquid and, essentially, self-funded.

This quarter, total assets increased to $36.5 billion at the end of March, driven by growth in Clearing client balances.

After netting client assets and liabilities, the remaining residual balance sheet primarily consists of corporate cash and other assets totaling $7.5 billion against group liabilities of $6.2 billion, including our structured notes and senior notes issuance.

Turning, now, to capital and liquidity, we continue to manage capital and liquidity prudently, maintaining substantial headroom above regulatory requirements to ensure resilience across market environments.

At the end of March 2026, regulatory capital was $1 billion against a requirement of $403 million, representing a capital ratio of 253%. This provides a substantial buffer and supports our investment-grade credit ratings.

Total corporate funding increased to $6.7 billion, up from $6.2 billion at year-end 2025. We maintain significant liquidity headroom of approximately $1.4 billion.

As Ian mentioned, we announced an increase in quarterly dividends to $0.16 per share for the Q1 to be paid to shareholders on June 3.

Finally, closing with risk management, average daily [VAR] increased to $5 million in the first quarter, reflecting the extreme levels of volatilities in the commodities market and set against a trading profile that included a higher number of days generating over $2 million of revenue, with only six negative trading days.

This remains at a very low level, relative to the performance delivered by Market Making this quarter, reflecting the client flow-driven nature of our business.

In terms of credit risk, we had no realized credit losses in the quarter.

Now, I'll hand you back to Ian.

Thanks, Rob.

In closing, we are two years into life as a public company and have consistently delivered. Every quarter has been ahead of the same quarter in the prior year, with growth averaging well above our stated long-term guidance.

Quarterly earnings have increased from around $55 million, pre-IPO, to over $150 million in the first quarter of 2026.

The opportunity ahead remains substantial and exciting. High barriers to entry, structural shifts in bank focus, and the increased demand for our services create a long runway for growth. We are better positioned to capture today than at any point in our history.

On margins, the combination of AI-driven productivity, a growing proportion of earnings from high infrastructure businesses, like Clearing and Prime.

The operating leverage of the platform gives us confidence in continued margin expansion over the medium term.

The consistent growth we are delivering is not a function of any single market environment. It is the result of the platform we have built, the clients we serve, and the organization we have built over many years.

2026 has started extremely well. We're excited about our prospects for the rest of the year and the future.

With that, I'll hand it over to the operator to open the line for questions.

We will now begin the question-and-answer session.

(Operator Instructions)

Chris Allen, KBW.

Morning, guys. Thanks for taking the question.

I just wanted to start out with April, just the commentary there, tracking above last year. Maybe you could help us think about what April looks like, from an organic perspective, because the comps last year weren't exactly easy.

And then, what's been the incremental impact from inorganic or just build out of different capabilities and segments?

Sure, Chris. Thanks. Look, as we mentioned, we did have a strong April. I think the backdrop here is, as you'll be familiar with, exchange volumes, down on March, as well as the first quarter.

No sense in which those extremely elevated exchange volumes have maintained themselves nor would we really expect that.

But, notwithstanding that, we do have an April which is stronger than last year and has been a strong month. The opportunities in Market Making -- and, probably, somewhat lower, just as the market is pausing some amount.

But what we are seeing is real interest in the Prime. The Clearing volumes are up. The Clearing balances are up. And so, essentially, the diversified platform is working out.

We are seeing nice contributions from some of the acquisitions that we closed last year. Hamilton Court, in particular has had a very strong April. But the business is performing, as we would hope.

Not at the levels of March, which I think were somewhat unsustainable over the longer term but, certainly, very strong performance in April. That gives us confidence for the second quarter, as well as for the rest of the year.

Got it. Just as a follow-up, maybe we could dig into financial products a little bit more. Obviously, you're seeing really nice growth trajectory here. The impact of the new tech platform.

Maybe you could just discuss whether there's specific client opportunities here, regional opportunities. Any additional color would be helpful.

Yeah. No. Certainly. Look, as you mentioned, we did invest a lot last year in upgrading our technology; our infrastructure platform, which enabled us to support a much larger number of products and be able to bring products to market more swiftly.

In addition, we've been consistently investing in building out some of the regions. Certainly, with financial products, there's been a lot of take-up in Asia.

And hen, although it's very early days, we've been investing in the US markets. While those are not really relevant in the first-quarter numbers or even in April, we actually have a lot of confidence that that's going to deliver.

What's really going on, I think, is just the output of a lot of effort to invest. Undoubtedly, the market environment in the Q1 was helpful for that particular business. But I think that most of what it represents is just the ongoing investments that we've been making in the product.

Probably not going to -- it's going to be hard to maintain the growth rate that we saw in the Q1. But we still see it as likely to perform very strongly through the rest of the year.

Thanks, guys.

Alexander Blostein, Goldman Sachs.

Hey, Ian. Good morning, everybody.

I wanted to start with a question around operating leverage. Really strong margin, 22% in the quarter. Obviously, the revenue environment was very helpful. The sources of revenue growth have contributed to that.

But curious if you could expand on ability to sustain these type of margins for the rest of the year, as the environment, perhaps, normalizes a bit; and, ultimately, as you look forward, what the scope is for incremental margin expansion over the next couple of years.

Yeah. Look, I think that, as we indicated at Investor Day, we do think that the way in which we're growing is likely to be increasing of margins. We expect that our growth will be differentially in infrastructure-intensive businesses, like Prime and Clearing.

Those, I think, just naturally increase margins. I think that, over time, we will start to see more economies of scale.

At the moment, as we've grown, we've grown essentially to look to diversify, adding new products, new geographies. Over time, I think more of the growth will be by getting bigger in things we're already in, rather than just simply adding new things. I think that, in and of itself, lends itself to higher margins.

And then, although it is not reflected in the numbers at the moment -- but I think it will be over a period of time, as we look at the potential for AI to enable us to not only do functions better and more efficiently but, potentially, reduce some amount of cost. That feels like it's very early in what will be a long game.

The combination of all those things, I think, put us in a position where we're pretty confident that, over a three-year horizon, the margins are likely to be in the mid-[20%s], somewhere in and around there.

As we look at this year, I think that continuing to operate at these margin levels is quite plausible and feasible. Again, the first quarter was not a quarter where we had particularly strong Prime. Obviously, it was up a lot on the prior year. But it wasn't up on the prior quarter.

I think that, for the rest of the year, we actually anticipate that Prime, which is a very high-margin business for us, will actually be growing. I think that maintaining the margins at these levels and then, seeing them grow over the next three years to something like mid-20%s is a sensible expectation.

Great. Super helpful. And then, for my follow-up, I wanted to touch on some of the corporate actions you guys have announced.

One, just want to make sure whether there are any implications, from a business perspective, from redomiciling, whether it's incremental operational efficiencies or any capital benefits.

Yeah.

And then, related to your authorization coming up, share buyback coming up in May, just curious how you're thinking about utilizing buybacks as part of the overall growth algorithm for the company, going forward?

Sure. Well, with regard to the redomiciling, we're very explicit about it's not changing the operating model. It's really about just the location of the holding company.

It will mean that we will have four regional holdcos. I think that will promote the right longer-term structure and focus for us.

It is not likely to -- and was never motivated by a desire to -- capture capital efficiencies. While I think there will be some operational efficiencies, we expect them to be relatively modest.

They will mostly arise as a result of the complexity of operating as a UK-domiciled company, as well as having a US listing. That complicates a variety of matters, including compensation and other things; and typically involves having a lot of legal help with ensuring that what you're putting in place really works for all of the various requirements.

I think we expect relatively modest improvements in operations. We're not doing this for tax reasons. We remain UK tax-domiciled. We don't anticipate capital advantages. But it is consistent with where we're looking to evolve the firm. There will be some limited cost savings as a result of it.

Share buyback. Share buybacks.

Oh. Share buybacks. I think that -- I think people are aware that we don't have an authorization, currently. I think that there's a sense that's pretty widely shared that what we want to have is the ability to buy back our stock, if it is sensible for us to do so.

Particularly, when we saw the stock drop a reasonable amount last year, I think the question was, should we, in fact, have been in a position to buy back our stock?

It doesn't represent a shift in our view that our current capital allocation is, in fact, the right one, which is ensuring we can maintain our investment-grade rating, maintaining the dividend and using excess for acquisitions.

As long as we're seeing acquisitions at the prices we're seeing them at the moment, we think that's the best way to create value for shareholders.

But operating in a world where you don't even have that authorization seems, to us, to be an error. And so we're hoping to get authorization from our shareholders to enable us to buy back stock, if it was necessary or the Board felt it was sensible for us to do so.

Very well. Thank you so much.

Thanks, Alex.

Bill Capps, TD Cowen.

Okay. Excuse me. Thank you very much for taking the question. Good morning. Good afternoon.

Just coming back, just want to make sure I understand the April framework (inaudible) - if you could unpack that a little bit -- I joined a moment late so I apologize if you covered this. Busy morning.

I heard that April's looking somewhere between February and March. I was wondering if you might be able to unpack that a little bit further. Obviously, a pretty wide spectrum underneath that.

Maybe what you're seeing, just in terms of client behavior, client margin balances; and, within that, any shift in risk, just given the loss in the January month. Thank you.

Okay. Look, I think that, as you point out, the range between February and March is quite large. I think that -- to give everybody a sense of where within that range we are, if we were able to continue the rest of the quarter at the level of where we were in April, I think we'd be in and around what we did for the first quarter, in aggregate.

What's underpinning that strong performance is, obviously, client balances have been very strong. That's been supporting our Clearing businesses.

We've seen a great deal of interest in the Prime product and so that's certainly been helpful. I think that there is retrenchment, just in the marketplace, generally, from some of the market makers in some of the commodity products.

While spreads remain quite wide, volumes are somewhat lower there. And so while revenues are quite strong, they're not at the levels that we saw in March. I think that that's broadly what we're seeing.

We're certainly not seeing increases in risk. We're not seeing concerns with credit. As I indicated in the remarks, those have -- essentially, all of those situations have resolved.

We're feeling that it's just indicative of the ongoing strength in the franchise and the ongoing progress we're making with clients.

I don't know if there's anything I haven't covered within your multiple question there, Bill.

It was one long question. But thank you very much. Just following my peers.

Second question for you is just on deals. At the Investor Day, I think you had mentioned that the pipeline is pretty robust. I was wondering if you could give us an update of maybe how that pipeline has seasoned since the Investor Day; and maybe frame out maybe size of opportunities and what, specifically, you might be looking at.

Thank you.

Sure. Look, I think that, since the Investor Day, in some of the companies we've been talking with, things have progressed in a positive way. I think we're closer to reaching terms on those or completing diligence. That feels like we're actually making good progress in moving all of that forward.

I think that what it looks like is, we'll be able to deliver very comparable levels of acquisition, in aggregate, as we did last year.

Again, acquisitions in the Clearing space; acquisitions in -- we'll have Webb Trader; acquisitions in the Market Making space, I think all of those are likely to complete this year. And then, I think that, in aggregate, it's likely to have very comparable impact of what we saw in 2025; maybe somewhat more.

We're very pleased with how that all goes. We're able to increase diversification; particularly, geographically. One of the acquisitions we're looking at is in Asia; one is in Brazil; some are across regions.

They're probably focused on Clearing; bolt-ons, like the Aarna acquisition. But something -- essentially, a range of acquisitions which will strengthen all parts of our business.

Okay. Thank you for taking the multiple-part questions.

Oh. No problem.

Alex Kramm, UBS.

Yeah. Hey. Good morning, everyone.

Just digging a little bit deeper in, I think, the first answer you just gave to Bill; and, specifically, on the energy trading environment. We know that it's a little bit softer. This is not just a Marex but, also, an industry question.

I think you mentioned market makers may be a little bit less active. There were some well-documented losses in the space. Not the one that impacted you but just, in general, some of the larger trading houses and macro funds.

Just wondering what you're seeing out there; anything that makes you worry a little bit more than usual after these volatile quarters; and maybe any expectations when you think things will be ramping again -- even any signs of things ramping, already, again. Thanks.

Yeah. I think that what we're seeing is less activity from the pure traders and the market makers; and ongoing engagement from participants in this marketplace that are typically buyers or sellers of the commodity itself so oil or the various derivative products.

As you would expect in these environments, the margins on transactions tends to be higher. Volumes tend to be lower at this point in the cycle.

At the point at which those market makers or that speculative capital comes back into the marketplace, couldn't really say.

But, certainly, what we're seeing is those people who are buyers or consumers are, almost of necessity, quite active in hedging in an environment where there's this much volatility and uncertainty.

That's really what we're seeing. It's most pronounced in energy. There's less but still some in the metals markets, as well.

Somewhat less activity but the spreads are wider. That obviously helps maintain -- offset the impact to lower volumes.

Very good. Thank you. And then, maybe more in terms of growing the franchise with new client onboarding, you made some comments already. Maybe you can be a little bit more specific.

I think, at the time of the Investor Day, there was a really big pipeline of some, I think, near-term large onboarding. Just wondering, have a lot of those now happened?

And then, with, maybe, that behind us, how would you describe the pipeline over the next couple of quarters? Any specific comments around, obviously, Clearing and Prime, where it matters the most?

Yeah. I think that the good news is we have onboarded some of those larger mandates. They're onboarded. The pipeline remains quite robust over the next series of quarters.

But not -- it's -- as you will appreciate, Alex, the Clearing pipeline has a great deal of visibility because people work on these arrangements for many, many months; sometimes, quarters. And so you have a pretty rich sense of it.

The good news is, it's being realized about as we would expect. It does also mean that we can see that, over the subsequent set of quarters, there still are a number of really interesting clients that should come onto the platform.

That feels exciting. We talked about customer balances being up about $2 billion. Some of that is existing clients with more balances. Some of that is new clients.

That level of activity, we would expect to increase over the course of the year, albeit, perhaps, not at the same rate.

And then, with regard to Prime, there was a bit of a dip in February, as the markets dipped. But that business is now operating at record levels and has a robust pipeline -- a very robust pipeline -- over the rest of the year.

It really is -- it -- it's the part of the firm that offers diversification when exchange volumes might be coming down. We saw that in the third quarter of last year.

Certainly, we're seeing the very positive impact of Prime in April. We expect that to continue into the second quarter and beyond.

Very helpful. Thanks, guys.

Dan Fannon, Jefferies.

Thanks. Just wanted to talk about some of the recent acquisitions and their contribution that you mentioned: Hamilton Lane and then, Winterflood.

Can you talk about how those have tracked as they've been onboarded versus expectations? And then, remind us if there's any cost benefits that, maybe, still could come through to think about, maybe, margin enhancement as those businesses continue to scale.

Yeah. Sure. It's Hamilton Court. Hamilton Court is performing very strongly. It may actually operate at a level which is almost double what it was, prior to acquisition. We're actually really pleased with how Hamilton Court is operating.

It is just an example of how you take a strong business, a strong capability and you put it onto the Marex platform where it has advantages in terms of how it hedges out its positions, its terms of trade with the street; the ability to generate liquidity; the comfort that clients have with you.

That just has created really considerable scope for growth. I think the team is doing a very good job of capturing that.

With regard to Winterflood, it closed in December. The sale of the custody business to Eperis, now that regulatory approval has been obtained, will be happening this quarter.

The revenue performance of the business is strong and ahead of what it was prior to acquisition. We need to complete the splitting of the business into the Market Making piece and the custody piece; and move and have the Eperis sale complete.

At that point, you know, we do believe that there will be some opportunity for margin expansion.

We did indicate that we thought that Winterflood would get to a 20% margin. It's operating below that. There is some scope for margin expansion within the Winterflood business, as we change the support model and are able to capture some of the synergies that would exist as part of Marex.

Understood. Okay. Thank you. And then, following up on some earlier comments, just on the Hedging and Investment Solutions business, which continues to be on a really robust growth rate, can you just maybe frame what is the best backdrop for those products to be sold and adoption?

Clearly, we've been in a volatile one. But I just want to make sure I understand the macro components that increase or drive demand? Or we shouldn't think of it that way, it's just more of what you guys are doing in the blocking, tackling, and executing?

Yeah. I think it's probably a combination of those two things. The business comprises two elements:

One is essentially OTC hedges for clients; clearly, the more volatile environment which creates more requirement for people to hedge out commodities exposures. That is helpful to the business as a general backdrop.

And then, within financial products, which is the structured note component of the business, the backdrop, which is, yeah, higher volatility but, probably, also stable or increasing equity prices, those are probably =-- that's the helpful backdrop.

I think that the improvement quarter on quarter and year on year in that business is a function of both a supportive environment, as well as structural improvements in the business.

The investments we made last year in infrastructure, which are -- are really very significant in this, not only because this year we're now able to free up all the bandwidth of the senior management team that were involved in ensuring that infrastructure build-out was successful -- but also, with that infrastructure build-out, has been an ability to have more products, bring products to markets more swiftly, be able to do that with high levels of confidence around controls.

And so I think it's the combination of the investments we made: the ongoing investment in staff, the broadening of the business, geographically, the progress we're making over a period of time, most noteworthy in Asia but not uniquely in Asia.

With the backdrop, which is helpful to that business, all of those things have contributed to a very strong quarter in that business.

Understood. Thanks for taking my questions.

You're welcome.

We have reached the end of the question-and-answer session.

I will now turn the call back to Ian Lowitt, CEO, for closing remarks.

Well, thanks everybody for joining us. Another really strong quarter for the firm; a record by some margin.

It's obviously, partly, a function of an environment that was supportive for our business. But it also, I think, reflects the ongoing improvements we make quarter to quarter; just improving how we operate. That combination has delivered the record results.

We're obviously pleased with how the business has performed in April, which is a less supportive environment but one which we continue to perform strongly. That gives us the confidence for the second quarter. It also gives us a lot of confidence for the rest of the year and beyond that.

It's great to be able to continually come and describe record quarters to you, all. Hopefully, we'll be able to continue to do that.

Thanks, everybody.

This concludes today's call. Thank you for attending. You may now disconnect.