Interactive Brokers has released its brokerage monthly performance metrics for November, highlighting a significant rise in clients' accounts. This metric increased 22% year-over-year (YoY) to 2.52 million, representing an uptick of 2% from the preceding month.
The global electronic broker disclosed 1.898 million daily average revenue trades (DARTs) during this period. Despite experiencing a dip of 3% in DARTs compared to the previous year, the firm reported a positive uptick in various key areas. Notably, client equity stood at $404.3 billion, showcasing a remarkable upsurge of 27% from last year and a notable rise of 10% from the preceding month.
Interactive Brokers' Margin Loans and Credit Balances
Client margin loan balances jumped 8% compared to the previous year, maintaining a steady trend in line with the figures for the previous month. Additionally, ending client credit balances, including insured bank deposit sweeps, gained 6% and 5% compared to the prior year and month, respectively.
Interactive Brokers' average commission per cleared commissionable order, encompassing exchange, clearing, and regulatory fees, stood at $3.21. On average, the total cost of trade execution regarding US Reg-NMS stock trades for IBKR PRO clients was $24,591.30 in November.
Interactive Brokers delivered an exceptional performance in the third quarter of 2023, highlighting a substantial surge in net revenue, which soared to $1.145 billion. This represented an upturn of 45% YoY and a growth of 14.5% quarter-over-quarter. The adjusted figures closely mirrored this impressive growth, standing at $1.139 billion.
Rising Earnings and Investor Incentives
The company experienced a significant rise in diluted earnings per share, reported at $1.56 and adjusted to $1.55. This displayed a substantial improvement from the prior year's $0.97 and $1.08, respectively. The broker's reported pre-tax income stood at a staggering $840 million, with the adjusted figure at $834 million. This marked a substantial growth from the preceding year's $523 million and $580 million.
Meanwhile, Interactive Brokers recently offered an opportunity to investors in the UK for a promotion for stocks and shares in investment savings accounts (ISAs). This offer grants eligible residents the chance to receive a commission credit of £55, subject to specific terms and conditions.
This promotion is a gateway for investors to access a range of global securities while benefiting from the tax benefits provided by ISAs, Interactive Brokers mentioned. These accounts facilitate access to various investment products, encompassing stocks, bonds, and exchange-traded funds, both within the UK and internationally.
