Interactive Brokers registers steep increase in revenues in Q3 2022
Electronic trading major Interactive Brokers Group, Inc. (NASDAQ:IBKR) announced results for the quarter ended September 30, 2022.
Reported diluted earnings per share were $0.97 for the current quarter and $1.08 as adjusted. For the year-ago quarter, reported diluted earnings per share were $0.43 and $0.78 as adjusted.
Reported net revenues were $790 million for the current quarter and $847 million as adjusted. For the year-ago quarter, reported net revenues were $464 million and $650 million as adjusted.
Reported income before income taxes was $523 million for the current quarter and $580 million as adjusted. For the year-ago quarter, reported income before income taxes was $234 million and $420 million as adjusted.
Commission revenue increased 3% to $320 million on higher customer futures trading volume and higher options commission per contract, tempered by lower stock volume.
Net interest income increased 73% to $473 million on higher benchmark interest rates and customer credit balances, partially offset by a decline in margin lending balances.
Other income increased $122 million to a loss of $48 million. This increase was mainly comprised of a $171 million lesser loss related to Interactive Brokeers’ strategic investment in Up Fintech Holding Limited (“Tiger Brokers”), partially offset by $37 million related to IBKR’s currency diversification strategy and $7 million related to trading activities.
Reported pretax profit margin was 66% for the third quarter of 2022 and 68% as adjusted. For the year-ago quarter, reported pretax margin was 50% and 65% as adjusted.
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, 2022, to shareholders of record as of December 1, 2022.