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10-QPeriod: Q3 FY2015

Interactive Brokers Group, Inc. Quarterly Report for Q3 Ended Sep 30, 2015

Filed November 9, 2015For Securities:IBKR

Summary

Interactive Brokers Group, Inc. (IBKR) reported strong financial performance for the nine months ended September 30, 2015, driven by robust growth in its electronic brokerage segment. Net revenues increased by 10% year-over-year, reaching $918 million. While the company experienced a net loss of $119 million related to customer losses from the Swiss franc event and significant losses from its currency diversification strategy, its core operations demonstrated resilience. The electronic brokerage segment saw a 27% increase in net revenues to $878 million, fueled by higher commissions and execution fees and increased net interest income, reflecting growth in customer accounts and trading activity. Despite challenges, particularly the impact of foreign currency fluctuations and a notable increase in customer bad debt expense due to the Swiss franc event, the company's overall financial position remains solid. IBKR maintained substantial regulatory capital, exceeding requirements by $3.4 billion. The company's strategic focus on automation and technology continues to support its competitive position, with plans for continued investment in technology infrastructure to drive future growth.

Financial Statements
Beta
Revenue$375.00M
Net Income$22.00M
EPS (Basic)$0.09
EPS (Diluted)$0.09
Shares Outstanding (Basic)249.83M
Shares Outstanding (Diluted)256.11M

Key Highlights

  • 1Net revenues increased by 10% to $918 million for the nine months ended September 30, 2015.
  • 2Electronic brokerage segment net revenues grew by 27% to $878 million, driven by increased commissions, execution fees, and net interest income.
  • 3The company incurred a $119 million net loss due to customer defaults following the Swiss franc devaluation.
  • 4A significant loss of $186 million was recorded due to the currency diversification strategy.
  • 5Customer bad debt expense increased substantially to $145 million for the nine months ended September 30, 2015.
  • 6Total assets grew to $47.2 billion as of September 30, 2015.
  • 7Regulatory capital exceeded requirements by $3.4 billion, indicating a strong capital position.

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