Interactive Brokers Ends Q4 2022 with Record Profits

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Interactive Brokers Ends Q4 2022 with Record Profits

<p>Interactive Brokers Group (Nasdaq: IBKR) ended the quarter between October and December with earnings of $1.31 per share, making it the company's best three months in terms of quarterly profits. The adjusted figure at $1.30 per share is much higher than the market expectation of $1.16 per share.</p><p>Interactive Brokers Sees a Record Quarter</p><p>The American online broker reported that net revenues were $976 million for the last quarter of 2022, while the adjusted figure came in at $958 million. The two numbers jumped roughly 62 percent and 40 percent, respectively, from the <a href="https://www.financemagnates.com/forex/brokers/interactive-brokers-posts-11-jump-in-q4-2021-commission-revenue/" target="_blank" rel="follow">same period of the previous year</a>.</p><p>The announcement on Wednesday detailed that the brokerage firm's revenue from commissions increased by 3 percent to $331 million, while the net interest income jumped by 92 percent to $565 million on higher benchmark interest rates and customer credit balances.</p><p>Its "other income", which also increased $107 million, came at a gain of $37 million due to the company's investment into UP Fintech, currency diversification strategy, and tax remeasurements.</p><p>The reported pre-tax income of the broker increased by almost 85 percent to $689 million, while the adjusted number took an upward leap of 48 percent to $671 million. The company closed the quarter with a net income of $633 million, compared to $338 million in the last quarter of 2021.</p><p>In the third quarter of the year, the broker <a href="https://www.financemagnates.com/forex/brokers/interactive-brokers-q3-revenue-strengthens-by-70/" target="_blank" rel="follow">reported net revenue of $790 million</a> and a pre-tax income of $523 million. Moreover, a spike in interest incomes boosted the performance of that quarter.</p><p>Check out the latest FMLS22 session on "Online Trading - A Futurist Look."</p><p>Customer Metrics at Interactive Brokers</p><p>Interactive Brokers is one of the more popular <a href="https://www.financemagnates.com/terms/o/online-trading/" class="terms__main-term" id="93afd583-ea4d-45cf-a1e0-8d951e5d8f48" target="_blank">online trading</a> platforms around the globe. The number of customer accounts on the platform increased by 25 percent to 2.09 million at the end of Q4 2022.</p><p>However, customer equity decreased by 18 percent to $306.7 billion, and the total <a href="https://www.financemagnates.com/forex/brokers/interactive-brokers-reports-lower-darts-but-higher-client-accounts-in-december/" target="_blank" rel="follow">DARTs took a 22 percent dive</a> to 1.89 million. The cleared DARTs for the quarter came in at 1.69 million, which is again 22 percent lower. The customer margin loans decreased by 29 percent to $38.9 billion, whereas customer credits increased by 9 percent to $95.2 billion.</p>

This article was written by Arnab Shome at www.financemagnates.com.

Source: Interactive Brokers Ends Q4 2022 with Record Profits