Interactive Brokers registers steep increase in revenues in Q4 2022

Electronic trading major Interactive Brokers Group, Inc. (NASDAQ:IBKR) has reported its financial results for the final quarter of 2022.

Reported diluted earnings per share for the three months to end-December 2022 were $1.31 and $1.30 as adjusted. For the year-ago quarter, reported diluted earnings per share were $0.67 and $0.83 as adjusted.

Reported net revenues were $976 million for the fourth quarter of 2022 and $958 million as adjusted. For the year-ago quarter, reported net revenues were $603 million and $683 million as adjusted.

Reported income before income taxes was $689 million for the final quarter of 2022 and $671 million as adjusted. For the year-ago quarter, reported income before income taxes was $373 million and $453 million as adjusted. Commission revenue increased 3% to $331 million on higher customer futures trading volume and larger average trade size in options, tempered by lower customer stock trading volume.

Net interest income increased 92% to $565 million on higher benchmark interest rates and customer credit balances, despite a decline in margin lending balances.

Other income increased $107 million to a gain of $37 million. This increase was mainly comprised of $58 million related to Interactive Brokers’ strategic investment in Up Fintech Holding Limited (Tiger Brokers), $34 million related to Interactive Brokers’ currency diversification strategy and $6 million related to the remeasurement of Interactive Brokers’ Tax Receivable Agreement liability.

The number of customer accounts increased 25% to 2.09 million.

Total daily average revenue trades (DARTs) decreased 22% to 1.89 million, whereas cleared DARTs decreased 22% to 1.69 million.

The Interactive Brokers Group, Inc. Board of Directors declared a quarterly cash dividend of $0.10 per share. This dividend is payable on March 14, 2023, to shareholders of record as of March 1, 2023.

 

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