In Q4 2022, Interactive Brokers reports a sharp increase in revenues

Interactive Brokers Group, Inc. (NASDAQ:IBKR), a leader in electronic trading, has released its financial results for 2022’s fourth quarter.

For the three months ending in December 2022, diluted reported earnings per share were $1.31 and $1.30 after adjustments. The reported and as adjusted diluted earnings per share for the previous quarter were $0.67 and $0.83, respectively.

For the fourth quarter of 2022, reported net revenues were $976 million and adjusted net revenues were $958 million. The reported and adjusted net revenues for the prior-year quarter were $603 million and $683 million, respectively.

For the last quarter of 2022, reported income before income taxes was $689 million and, when adjusted, $671 million. Prior-year quarter reported income before income taxes was $373 million and adjusted income before income taxes was $453 million. Due to stronger customer futures trading volume and a larger average trade size in options, commission revenue climbed by 3% to $331 million, however this growth was mitigated by reduced customer stock trading volume.

Despite a fall in margin lending balances, net interest revenue jumped 92% to $565 million thanks to rising benchmark interest rates and consumer credit balances.

The rise in other income was $107 million, for a profit of $37 million. This increase was primarily made up of $34 million related to Interactive Brokers’ strategy of currency diversification, $58 million related to Interactive Brokers’ strategic investment in Up Fintech Holding Limited (Tiger Brokers), and $6 million related to the remeasurement of Interactive Brokers’ Tax Receivable Agreement liability.

There are now 2.09 million consumer accounts, a 25% increase.

While cleared DARTs declined 22% to 1.69 million, total daily average revenue trades (DARTs) decreased 22% to 1.89 million.

The Board of Directors of Interactive Brokers Group, Inc. declared a quarterly cash dividend of $0.10 per share. This dividend is due to shareholders with records as of March 1, 2023, on March 14, 2023.

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