Interactive Brokers Ends Q4 with $1.31 Per Share Earnings

Interactive Brokers Group ended the quarter between October and December with an impressive $1.31 per share earnings. It was the company’s best three months in terms of quarterly profits. The adjusted rate of $1.30 per share exceeds the market expectation of $1.16 per share.

Net revenues for the Q4 of 2022 came in at $976 million, while the adjusted figure came in at $958 million. It was a jump of roughly 62% and 40%, respectively, from the same period of the previous year.

The brokerage firm’s commission revenue increased by 3% to $331 million. Meanwhile, net interest income significantly jumped by 92% to hit $565 million as benchmark interest rates and customer credit balances rose.

The broker’s “other income” also increased by $107 million due to investments into UP Fintech, currency diversification strategy, and tax-related items. However, it closed off on a gain of $37 million.

The reported pre-tax income went up 85% to $689 million. At the same time, its adjusted number was even more impressive — jumping 48% to close off at an encouraging amount of $$671 billion.

Interactive Brokers also closed with a net income of $633 million compared to last quarter’s figure of only $338 million for 2021.

In comparison, Interactive Brokers had reported net revenue totaling out at around $$790 million for Q3 along with pre-tax income value at a notable level on account of a spike in interest incomes boosting its performance which carried over till Q4 as well.

Interactive Brokers’ Customer Metrics

The online trading platform remained popular while witnessing an uptick in customer count by 25%. The total was 2.09 million accounts active on the platform despite customer equity going south by 18%. Total DARTs drove 22%, margin loans dropped 29%, and customer credits increased by 9%.

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