Interactive Brokers Group Inc Stock Price, News & Analysis

Interactive Brokers Group reported Q1 2023 results with a GAAP diluted EPS of $1.42 and adjusted EPS of $1.35, reflecting significant growth from $0.74 and $0.82 year-over-year, respectively. Net revenues reached $1,056 million, up from $645 million a year ago. The firm saw a 2% increase in commission revenue to $357 million, driven by record futures contract volumes, despite a dip in customer stock trading volume. Net interest income soared 126% to $637 million due to rising interest rates. Customer accounts rose 21% to 2.20 million, though customer equity fell 4% to $343.1 billion. A quarterly cash dividend of $0.10 per share was declared, payable June 14, 2023.

Interactive Brokers Group (Nasdaq: IBKR) reported March 2023 performance metrics showing a decline in key trading metrics year-over-year. Daily Average Revenue Trades (DARTs) were 2.055 million, down 16% compared to last year and 3% from February. Ending client equity was $343.1 billion, with a 4% decrease year-over-year but a 3% rise from last month. Client margin loan balances fell 18% to $39.4 billion year-over-year, while credit balances increased 4% to $96.6 billion. The firm also reported 2.20 million client accounts, a 21% increase year-over-year. The average commission per cleared order was $3.21, reflecting market dynamics.

Interactive Brokers (NASDAQ: IBKR) announced clients can earn up to 4.33% interest on cash balances over USD 10,000. Interest is paid directly into client brokerage accounts, making funds instantly available. In comparison, other brokerages offer rates between 0.01% and 2.32%. The company uses the Fed Funds rate as a reference, allowing for potential earnings to increase as interest rates rise. Clients will have daily accruing interest with monthly payments, simplifying cash management. Thomas Peterffy, founder, emphasized the benefits of competitive rates and a sophisticated trading platform.

Interactive Brokers Group (Nasdaq: IBKR) reported its February performance metrics, showing 2.121 million Daily Average Revenue Trades (DARTs), a 15% decline year-over-year but 7% increase month-over-month. Client equity stood at $331.6 billion, down 5% from last year. The margin loan balances decreased 21% year-over-year to $39.1 billion. Conversely, client credit balances rose 10% to $97.9 billion, including $2.5 billion in insured deposits. The firm also achieved 2.16 million client accounts, representing a 22% increase from the previous year.