Summary
Interactive Brokers Group, Inc. (IBKR) reported its third-quarter 2009 financial results, indicating a significant year-over-year decline in profitability. Diluted EPS fell to $0.20 from $0.65 in the prior year's comparable quarter. This was driven by a substantial decrease in net revenues, primarily due to lower trading gains which were down 57% year-over-year, reflecting tighter bid/offer spreads and lower volatility in market making activities. While the electronic brokerage segment showed more resilience with a slight decrease in income before taxes, its net interest income was also impacted by the low interest rate environment. Despite the challenging quarter, the company's financial condition remained strong, with total assets at $28.85 billion and significant excess regulatory capital of $3.07 billion. The company's liquidity position was robust, supported by substantial cash and collateralized receivables. IBKR continued to grow its customer accounts, which increased by 20% year-over-year, signaling underlying demand for its services despite the difficult trading environment.
Financial Highlights
15 data points| Revenue | $286.67M |
| Net Income | $8.41M |
| EPS (Basic) | $0.05 |
| EPS (Diluted) | $0.05 |
| Shares Outstanding (Basic) | 164.86M |
| Shares Outstanding (Diluted) | 167.89M |
Key Highlights
- 1Diluted EPS decreased significantly to $0.20 in Q3 2009 from $0.65 in Q3 2008, a 69% decline.
- 2Total net revenues for Q3 2009 were $271.5 million, down 45% from $497.1 million in Q3 2008, primarily due to a 57% drop in trading gains.
- 3The market-making segment's income before taxes decreased by 74% year-over-year, impacted by tighter spreads and lower volatility.
- 4The electronic brokerage segment saw a 3% decrease in income before taxes, with lower commissions offset by reduced expenses, though net interest income was down.
- 5Customer accounts grew by 20% year-over-year, reaching approximately 128,000, and customer equity increased by 43% to $13.4 billion.
- 6The company maintained a strong financial position with $28.85 billion in total assets and $3.07 billion in excess regulatory capital.
- 7Interest income decreased significantly due to the prevailing low interest rate environment.