Interactive Brokers posts its best quarterly results as net revenues hit $976 million

Interactive Brokers Group has reported $1.31 per share earnings during the fourth quarter of 2022. The Q4 results marked the best three months the company has had in terms of quarterly profits.

Interactive Brokers sees record profits in Q4 2022

The company’s $1.30 per share adjusted figure surpasses the market expectation of $1.16 per share. During the last quarter of 2022, the US-based online brokerage platform reported net revenues of $976 million, with the adjusted figure being $958 million.

The net revenues and the adjusted figure reported in Q4 2022 were around 62% and 40% higher, respectively, compared to the same period in 2021. The announcement made by the company also noted that the revenue generated from commissions had jumped by 3% to $331 million.

The net interest income for the company gained by 92% to $565 million amid the rise in interest rates and customer credit balances. The company’s “other income” also was $107 million at a gain of $37 million. The growth in this income was attributed to the company’s growing investment in areas such as tax remeasurements, currency diversification strategy, and UP Fintech.

The brokerage company also reported a nearly 85% increase in the pre-tax income, which came in at $689 million. The adjusted figure also jumped by 48% to $671 million. Interactive brokers closed the fourth quarter with a net income of $633 million, significantly higher than the $338 million reported in Q4 2022.

During the third quarter of 2022, the brokerage company reported net revenues of $790 million, while the pre-tax income came in at $523 million. Additionally, there was a significant jump in interest incomes, further boosting the company’s performance during the quarter.

Interactive Brokers reports improved customer metrics

Interactive Brokers ranks as one of the most popular online trading platforms globally. The number of customer accounts in the company has gained by 25% to 2.09 million customers by the end of the fourth quarter of 2022.

While there were significant gains in the number of new accounts, the customer equity plunged slightly by 18% to $306.7 billion, while the total DARTs also dropped by 22% to 1.89 million. The cleared DARTs for the company during the quarter came in at 1.69 million, which represented another 22% drop.

The brokerage platform also reported that the customer margin loans had dropped by 29% to come in at $38.9 billion during the quarter. Customer credits rose by 9% during the quarter to $95.2 billion. The metrics show that Interactive Brokers ended 2022 on a higher note than the previous quarters.