Summary
Interactive Brokers Group, Inc. (IBKR) reported its third-quarter and year-to-date results for 2019. The company demonstrated strong revenue growth driven by higher net interest income and commissions, despite a slight decrease in overall commissions year-over-year for the nine-month period. Total net revenues for the nine months ended September 30, 2019, increased to $1.437 billion, up from $1.411 billion in the prior year. Diluted earnings per share for the nine months were $1.52, a decrease from $1.71 in the prior year, reflecting increased customer bad debt expense and higher non-interest expenses. The company continues to expand its electronic brokerage segment, attracting more customers globally, while its market-making segment is being phased out. The company's balance sheet remains robust, with a significant portion of its assets classified as liquid. IBKR maintained strong regulatory capital levels across its operating companies. Management expressed confidence in the company's liquidity and ability to meet future needs through operational cash flows and available borrowings. Despite a challenging market environment with fluctuating volatility and interest rates, Interactive Brokers continues to focus on its technology-driven platform and customer service, aiming to attract and retain a diverse client base.
Financial Highlights
32 data points| Revenue | $643.00M |
| Interest Expense | $177.00M |
| Net Income | $36.00M |
| EPS (Basic) | $0.12 |
| EPS (Diluted) | $0.11 |
| Shares Outstanding (Basic) | 306.97M |
| Shares Outstanding (Diluted) | 309.40M |
Key Highlights
- 1Total net revenues for the nine months ended September 30, 2019, increased to $1.437 billion, up from $1.411 billion in the same period last year.
- 2Diluted earnings per share for the nine months ended September 30, 2019, were $1.52, down from $1.71 in the prior year, impacted by increased customer bad debt expenses and higher non-interest expenses.
- 3The electronic brokerage segment remains the primary revenue driver, with net revenues increasing by 14% year-over-year for the third quarter, driven by higher net interest income and commissions.
- 4Customer accounts grew by 16% year-over-year to 666,000, and customer equity increased by 10% to $156.6 billion as of September 30, 2019.
- 5Net interest income saw significant growth, increasing by 19% for the third quarter and 17% for the nine-month period, driven by higher customer credit balances and benchmark interest rates.
- 6The company maintained strong liquidity, with total assets of $67.8 billion as of September 30, 2019, of which approximately 99.1% were considered liquid.
- 7Aggregate excess regulatory capital for all operating companies stood at $6.2 billion as of September 30, 2019, with all entities in compliance with their capital requirements.