It will distribute a quarterly cash dividend of $0.10 per share.
Interactive Brokers (Nasdaq: IBKR) has ended the third quarter of 2023 with a reported net revenue of $1.145 billion, an increase of 45 percent year-over-year and 14.5 percent quarter-over-quarter. The adjusted figure came in very close to $1.139 billion.
A Jump in IBKR's Profit
In the official numbers published yesterday (Tuesday) post-market hours, the broker reported diluted earnings per share of $1.56 and $1.55 as adjusted. Both these figures improved significantly from $0.97 and $1.08, respectively, in the same period of the previous year.
The reported pre-tax income of the broker in the quarter came in at $840 million, with the adjusted figure at $834 million. The previous year's numbers were at $523 million and $580 million, respectively.
It had a profit margin of 73 percent, both reported and adjusted, improving from 66 percent and 68 percent in the previous year's third quarter.
Market Reacts
Despite the strong figures, the stocks of IBKR stocks shrank by almost 4.4 percent in the after-hours trading session. The unusual price drop came despite the reported revenue and earnings beat the street estimates significantly. According to analysts' consensus estimates, the per-share earnings would be at $1.51 on a revenue of $1.11 billion.
Diving Deep into the Figures
Interactive Brokers is one of the top electronic brokers in the US. It operates globally through various subsidiaries and has an extensive offering of trading services with stocks, forex, options, futures, CFDs, mutual funds, bonds, and even cryptocurrencies.
The broker's commission revenue leaped 4 percent to $333 million. It was backed by an 18 percent jump in options contracts trading volume, while the volume of futures and stocks decreased by 1 percent and 22 percent, respectively.
Its net interest income escalated 55 percent to $733 million, benefiting from higher interest rates and customer credit balances. Other income increased by $75 million, resulting in a gain of $27 million. It was driven by a gain of $37 million from its investment in Tiger Brokers.
The broker generated 98 million fees from execution, clearing, and distribution fees, an inverse of 14 percent.
The customer-related metrics of the broker also improved significantly last quarter. The number of accounts increased by 21 percent to 2.43 million, while customer equity improved 29 percent to $369.8 billion. However, the total DARTs dimmed 1 percent to 1.91 million.
Interactive Brokers (Nasdaq: IBKR) has ended the third quarter of 2023 with a reported net revenue of $1.145 billion, an increase of 45 percent year-over-year and 14.5 percent quarter-over-quarter. The adjusted figure came in very close to $1.139 billion.
A Jump in IBKR's Profit
In the official numbers published yesterday (Tuesday) post-market hours, the broker reported diluted earnings per share of $1.56 and $1.55 as adjusted. Both these figures improved significantly from $0.97 and $1.08, respectively, in the same period of the previous year.
The reported pre-tax income of the broker in the quarter came in at $840 million, with the adjusted figure at $834 million. The previous year's numbers were at $523 million and $580 million, respectively.
It had a profit margin of 73 percent, both reported and adjusted, improving from 66 percent and 68 percent in the previous year's third quarter.
Market Reacts
Despite the strong figures, the stocks of IBKR stocks shrank by almost 4.4 percent in the after-hours trading session. The unusual price drop came despite the reported revenue and earnings beat the street estimates significantly. According to analysts' consensus estimates, the per-share earnings would be at $1.51 on a revenue of $1.11 billion.
Diving Deep into the Figures
Interactive Brokers is one of the top electronic brokers in the US. It operates globally through various subsidiaries and has an extensive offering of trading services with stocks, forex, options, futures, CFDs, mutual funds, bonds, and even cryptocurrencies.
The broker's commission revenue leaped 4 percent to $333 million. It was backed by an 18 percent jump in options contracts trading volume, while the volume of futures and stocks decreased by 1 percent and 22 percent, respectively.
Its net interest income escalated 55 percent to $733 million, benefiting from higher interest rates and customer credit balances. Other income increased by $75 million, resulting in a gain of $27 million. It was driven by a gain of $37 million from its investment in Tiger Brokers.
The broker generated 98 million fees from execution, clearing, and distribution fees, an inverse of 14 percent.
The customer-related metrics of the broker also improved significantly last quarter. The number of accounts increased by 21 percent to 2.43 million, while customer equity improved 29 percent to $369.8 billion. However, the total DARTs dimmed 1 percent to 1.91 million.
Arnab is an electronics engineer-turned-financial editor. He entered the industry covering the cryptocurrency market for Finance Magnates and later expanded his reach to forex as well. He is passionate about the changing regulatory landscape on financial markets and keenly follows the disruptions in the industry with new-age technologies.
FM's Editor-in-Chief Yam Yehoshua on how the newsroom evaluates stories.
FM's Editor-in-Chief Yam Yehoshua on how the newsroom evaluates stories.
FM's Editor-in-Chief Yam Yehoshua on how the newsroom evaluates stories.
FM's Editor-in-Chief Yam Yehoshua on how the newsroom evaluates stories.
Matthew Smith, Group CEO at EC Markets, speaking at FMLS:24
Matthew Smith, Group CEO at EC Markets, speaking at FMLS:24
Matthew Smith, Group CEO at EC Markets, speaking at FMLS:24
Matthew Smith, Group CEO at EC Markets, speaking at FMLS:24
Finance Magnates Annual Awards 2024 | FM Awards 2024 Highlights
Finance Magnates Annual Awards 2024 | FM Awards 2024 Highlights
🎥Catch the best moments from the Finance Magnates Annual Awards Gala Dinner!
An evening where top names in finance came together to celebrate achievements, enjoy live music, and connect over a memorable dinner. Watch the highlights and feel the energy of our first gala in Cyprus!
Congratulations to all the winners for their dedication to excellence and leadership in the financial industry, including XM, Trading PRO, FP Markets, Deriv, FxPro, LATAM, Headway, ATFX, FBS, AMEGA, EC Markets, Axi
For more information about the 1st Finance Magnates Annual Awards, visit https://bit.ly/3Zb7wNz
#FinanceMagnatesGala #IndustryExcellence #GalaHighlights #FinanceMagnatesAnnualAwards #FinanceMagnatesAwards #CelebratingSuccess #FinanceCommunity
🎥Catch the best moments from the Finance Magnates Annual Awards Gala Dinner!
An evening where top names in finance came together to celebrate achievements, enjoy live music, and connect over a memorable dinner. Watch the highlights and feel the energy of our first gala in Cyprus!
Congratulations to all the winners for their dedication to excellence and leadership in the financial industry, including XM, Trading PRO, FP Markets, Deriv, FxPro, LATAM, Headway, ATFX, FBS, AMEGA, EC Markets, Axi
For more information about the 1st Finance Magnates Annual Awards, visit https://bit.ly/3Zb7wNz
#FinanceMagnatesGala #IndustryExcellence #GalaHighlights #FinanceMagnatesAnnualAwards #FinanceMagnatesAwards #CelebratingSuccess #FinanceCommunity
FMLS:24 | Shaping the Next Era of Financial Evolution
FMLS:24 | Shaping the Next Era of Financial Evolution
Welcome to FMLS:24 – the premier event where influential brands and leaders in trading, payments, fintech, and digital assets come together!
Join over 2,500 industry professionals, engage with 150+ expert speakers, and discover endless opportunities with 70+ top exhibitors. FMLS:24 is where senior executives and decision-makers gather to close deals, forge new partnerships, and strengthen connections with long-term clients.
Whether you’re in finance, technology, or payments, this summit is your gateway to future growth, meaningful collaborations, and industry-leading insights.
👉 Don't miss out – secure your ticket now at https://events.financemagnates.com/ZQEYy0?utm_source=youtube&utm_campaign=fmls24-awareness&utm_medium=video&RefId=MLS%3A24+Video+Promo
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Don't miss out on our latest videos, interviews, and event coverage. Subscribe to our YouTube channel for more!
Welcome to FMLS:24 – the premier event where influential brands and leaders in trading, payments, fintech, and digital assets come together!
Join over 2,500 industry professionals, engage with 150+ expert speakers, and discover endless opportunities with 70+ top exhibitors. FMLS:24 is where senior executives and decision-makers gather to close deals, forge new partnerships, and strengthen connections with long-term clients.
Whether you’re in finance, technology, or payments, this summit is your gateway to future growth, meaningful collaborations, and industry-leading insights.
👉 Don't miss out – secure your ticket now at https://events.financemagnates.com/ZQEYy0?utm_source=youtube&utm_campaign=fmls24-awareness&utm_medium=video&RefId=MLS%3A24+Video+Promo
#fmls #fmls24 #fmevents #financemagnates #forex #payments #crypto #events #london #fintech #ai #generativeai #technology #onlinetrading #forex #investing #investors #tech
📣 Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates. Connect with us today:
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👍 Facebook: https://www.facebook.com/FinanceMagnatesEvents
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