Actionable news
0
All posts from Actionable news
Actionable news in IBKR: Interactive Brokers Group, Inc.,

Interactive Brokers Group Announces 2Q2017 Results

GREENWICH, Conn.--(BUSINESS WIRE)--Interactive Brokers Group, Inc. (NASDAQ GS:IBKR) an automated global electronic broker and market maker, today reported diluted earnings per share on a comprehensive basis of $0.41 for the quarter ended June 30, 2017, compared to diluted earnings per share on a comprehensive basis of $0.36 for the same period in 2016.

Excluding other comprehensive income, the Company reported diluted earnings per share of $0.32 for the quarter ended June 30, 2017, compared to diluted earnings per share of $0.40 for the same period in 2016.

Net revenues were $387 million and income before income taxes was $204 million this quarter, compared to net revenues of $369 million and income before income taxes of $213 million for the same period in 2016.

The results for the quarter were positively impacted by strong growth in net interest income, which increased $29 million, or 23%, and higher commissions, which increased $8 million, or 5% from the year-ago quarter. Trading gains decreased 62% from the year-ago quarter on lower market making trading volumes, as we wind down our options market making business, and decreases in volatility and in the actual-to-implied volatility ratio.

In addition, the results for the quarter include a $66 million gain on our currency diversification strategy, compared to a $2 million loss in the same period in 2016; a $3 million net mark-to-market loss on our U.S. government securities portfolio compared to a $14 million net mark-to-market gain in the same period in 2016; and approximately $22 million in one-time exit costs related to the wind-down of our options market making business, primarily consisting of the write-down of exchange trading rights.

The Interactive Brokers Group, Inc. Board of Directors declared a quarterly cash dividend of $0.10 per share. This dividend is payable on September 14, 2017 to shareholders of record as of September 1, 2017.

Business Highlights

  • 53% pretax profit margin for this quarter, down from 58% in the year-ago quarter.
  • 59% Electronic Brokerage pretax profit margin for this quarter, down from 62% in the year-ago quarter.
  • Customer equity grew 42% from the year-ago quarter to $104.8 billion and customer debits increased 51% to $22.7 billion.
  • Customer accounts increased 20% from the year-ago quarter to 428 thousand.
  • Total DARTs increased 3% from the year-ago quarter to 669 thousand.
  • Brokerage segment equity was $4.5 billion. Total equity was $6.2 billion.

Segment Overview

Electronic Brokerage

Electronic brokerage segment income before income taxes increased 4%, to $198 million in the quarter ended June 30, 2017, compared to the same period last year. Net revenues increased 8% to $334 million on higher net interest income and commissions revenue, partially offset by a net mark-to-market loss on our U.S. government securities portfolio.

Net interest income increased 25% as average customer credit and margin balances and benchmark interest rates increased from the year-ago quarter. Commissions revenue increased 5% from the year-ago quarter on higher customer volumes in options and stocks, which increased 12% and 55%, respectively, from the year-ago quarter. Other income decreased 33% over the year-ago quarter, driven by a non-recurrence of net mark-to-market gains on investments in U.S. government securities in the year-ago quarter. Pretax profit margin was 59% for the quarter ended June 30, 2017, down from 62% in the same period last year.

Customer accounts grew 20% to 428 thousand and customer equity increased 42% from...


More