Interactive Brokers reports drop in net revenues in Q1 2022
Electronic trading major Interactive Brokers Group, Inc. (NASDAQ:IBKR) has reported its financial results for the first quarter of 2022, with revenues down in annual terms.
For the quarter ended March 31, 2022, reported diluted earnings per share were $0.74 for the current quarter and $0.82 as adjusted. For the year-ago quarter, reported diluted earnings per share were $1.16 and $0.98 as adjusted.
Reported net revenues were $645 million for the current quarter and $692 million as adjusted. For the year-ago quarter, reported net revenues were $893 million and $796 million as adjusted. The result for the first three months of 2022 was better than the one recorded in the final quarter of 2021.
Reported income before income taxes was $394 million for the current quarter and $441 million as adjusted. For the year-ago quarter, reported income before income taxes was $639 million and $542 million as adjusted.
Commission revenue decreased 15% to $349 million in the first quarter of 2022 due to customer stock volume that dropped from an unusually active trading period last year, but was aided by higher customer options and futures trading volumes.
Net interest income decreased 8% to $282 million on a decline in securities lending activity, partially offset by gains on margin lending and segregated cash balances.
Other income decreased $159 million to a loss of $39 million. This decrease was mainly comprised of the non-recurrence of a $99 million gain related to Interactive Brokers’ strategic investment in Up Fintech Holding Limited (“Tiger Brokers”), $29 million related to its U.S. government securities portfolio, and $16 million related to its currency diversification strategy.
Reported pretax profit margin was 61% for the current quarter and 64% as adjusted. For the year-ago quarter, reported pretax margin was 72% and 68% 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 June 14, 2022, to shareholders of record as of June 1, 2022.