(Bloomberg) -- Citadel Securities reported its largest ever trading haul, surpassing the tally at some of Europe’s biggest banks to cement itself among the world’s trading behemoths.
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Full-year trading revenue rose 55% to $9.7 billion from the previous year, according to people familiar with the matter who asked not to be identified discussing private information. That topped a previous record of $7.5 billion set in 2022.
The haul vaults Citadel Securities ahead of lenders including Deutsche Bank AG and Barclays Plc after it steadily expanded from a small group built alongside Ken Griffin’s hedge fund into one of the biggest US market-making firms. Despite the rapid growth, it has a way to go before it catches up with some of its US peers, including the likes of Bank of America Corp. and Goldman Sachs Group Inc.
A representative for Miami-based Citadel Securities declined to comment. The company also posted a record $4.2 billion in net income for 2024, more than double the nearly $2 billion for the prior year.
The results offer a rare glimpse into the privately held firm, which has pushed into investment banks’ favored products under the leadership of Chief Executive Officer Peng Zhao. Nearly a year ago, Zhao hinted at the firm’s momentum, saying it was running at a “record pace” as it benefited from its expansion into new products and geographies.
The company is a market maker in equities, options, corporate bonds, Treasuries and exchange-traded funds and now serves clients including asset managers, banks, broker-dealers, hedge funds, government agencies and public pension programs.
Citadel Securities also posted a record $5.2 billion in earnings before interest, taxes, depreciation and amortization for 2024, an 87% jump on the prior year. Net trading capital had climbed above $16 billion by the end of 2024, compared to $13.5 billion at the end of 2023, largely driven by retained earnings, according to the people.
As it’s expanded, the firm has scooped up talent including from some of Wall Street’s biggest banks. That likely helped fuel a bump in its compensation and benefits which totaled just over $3 billion in 2024 compared to $2.3 billion the previous year, the people familiar said.
The firm, which also counts Jane Street, Susquehanna International Group and Virtu Financial Inc. among its rivals, went to the debt markets in October to cut borrowing costs on a $4 billion term loan.