Interactive Brokers Posts 11% Jump in Q4 2021 Commission Revenue

Interactive Brokers (Nasdaq: IBKR) has published its quarterly financials from October 2021 to December 2021, reporting net revenue of $603 million, along with the adjusted figure at $683 million. These numbers were at $599 million and $582 million, respectively, for the same quarter of the previous year.

The American company ended the quarter with a reported pre-tax profit of $373 million, compared to $392 million generated in the previous year. On an adjusted basis, these were at $453 million and $375 million, respectively.

The reported diluted earnings per share came in at $0.67 for the quarter with $0.83 as adjusted. Between October and December in the previous year, the broker’s diluted earnings per share were $0.81 and $0.69 as adjusted.

The pre-tax profit margin of the broker stood at 62 percent for the quarter with 66 percent as adjusted, compared to 65 percent and 64 percent, respectively, in the previous year.

Interactive Brokers is one of the major electronic brokerage venues in the United States. Additionally, it has an extensive presence around the world and is licensed in most of the key jurisdictions.

Solid Uptick in Commissions

Moreover, the latest announcement highlighted that the commission revenue of the broker increased by 11 percent in the quarter, which was mostly due to the higher customer options, futures trading volumes and higher average per-share commission in stocks. In addition, the net interest income jumped by 31 percent.

However, incomes generated from other streams declined by $104 million. Interactive Brokers has made a strategic $89 million investment into UP Fintech, the holding company of Tiger Brokers, and it has spent $10 million in diversification strategy.

Other client-related metrics of the broker have strengthened in the quarter. The number of customer accounts jumped by 56 percent to 1.68 million, while customer equity grew by 30 percent. Furthermore, total DARTs increased by 16 percent to 2.44 million.