Interactive Brokers reports Earnings for 3Q 2015 

Interactive Brokers Group, Inc. an automated global electronic broker and market maker has issued a press release to announce on its Group results for the quarter ended September 30, 2015.

The Company reported diluted earnings per share on a comprehensive basis of $0.23 for the quarter ended September 30, 2015, compared to a diluted loss per share on a comprehensive basis of $0.13 for the same period in 2014.

Excluding other comprehensive income, the Company reported diluted earnings per share of $0.35 for the quarter ended September 30, 2015, compared to diluted earnings per share of $0.05 for the same period in 2014.

Net revenues were $359 million and income before income taxes was $202 million this quarter, compared to net revenues of $171 million and income before income taxes of $40 million for the same period in 2014.

The Interactive Brokers Group, Inc. Board of Directors declared a quarterly cash dividend of $0.10 per share.
This dividend is payable on December 14, 2015 to shareholders of record as of December 1, 2015.

Business Highlights

• 61% Electronic Brokerage pretax profit margin for this quarter, down from 63% in the year-ago quarter.
• 51% Market Making pretax profit margin for this quarter, up from 14% in the year-ago quarter.
• Customer equity grew 13% from the year-ago quarter to $62.1 billion while customer debits decreased by
9% to $15.8 billion.
• Customer accounts increased 18% from the year-ago quarter to 322 thousand.
• Total DARTs increased 28% from the year-ago quarter to 683 thousand.
• Brokerage segment equity was $3.4 billion. Total equity was $5.3 billion.

Segment Overview

Electronic Brokerage
Electronic Brokerage segment income before income taxes increased 19%, to $184 million, in the quarter ended September 30, 2015 compared to the same period last year, due to higher commissions revenue and net interest income. Customer accounts grew 18% to 322 thousand and customer equity increased 13% to $62.1 billion from the year-ago quarter.

Commissions and execution fees increased 26% from the year-ago quarter, to $168 million. Net interest income grew 11% from the year-ago quarter, to $102 million. Pretax profit margin was 61% in quarter ended September 30, 2015, down from 63% in same period last year.

Total DARTs(1)
for cleared and execution-only customers increased 28% from the year-ago quarter to 683 thousand. Cleared DARTs were 620 thousand, 28% higher than the same period last year.

Market Making
Market Making segment income before income taxes increased 557%, to $46 million, in the quarter ended September 30, 2015 compared to the same period last year, driven by higher volatility and active trading in the late-August period. Pretax profit margin increased to 51% in the current quarter from 14% in same period last year.

Effects of Foreign Currency Diversification
In connection with our currency strategy, we have determined to base our net worth in GLOBALs, a basket of 16 major currencies in which we hold our equity. In this quarter, our currency diversification strategy decreased our comprehensive earnings by $76 million, as the U.S. dollar value of the GLOBAL decreased by approximately 1.5%. The effects of the currency diversification strategy are reported as components of (1) Other Income in the Corporate segment and (2) Other Comprehensive Income (“OCI”). As previously disclosed, certain reclassifications have been made to previously reported amounts to conform to the current presentation of currency translation gains and losses related to our currency diversification strategy.

Source: Interactive Brokers

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