Interactive Brokers Group Announces 1Q2018 Results
Reports Comprehensive Earnings Per Share of $0.65, Income before Taxes of $340 Million on $527 Million in
Net Revenues, and Earnings Per Share on Net Income of $0.63.
Declares Quarterly Dividend of $0.10 Per Share.
Interactive Brokers Group, Inc. (NASDAQ GS: IBKR) an automated global electronic broker and market maker, today reported diluted
earnings per share on a comprehensive basis of $0.65 for the quarter ended March 31, 2018, compared to diluted earnings per share
on a comprehensive basis of $0.40 for the same period in 2017. Excluding other comprehensive income, the Company reported diluted
earnings per share of $0.63 for the quarter, compared to diluted earnings per share of $0.34 for the same period in 2017.
Net revenues were $527 million and income before income taxes was $340 million this quarter, compared to net revenues of $374
million and income before income taxes of $213 million for the same period in 2017. The results for the quarter were positively
impacted by strong growth in net interest income, which increased $75 million, or 53%, and higher commissions, which increased $66
million, or 43% from the year-ago quarter.
In addition, the results for the quarter include a $38 million gain on our currency diversification strategy, compared to a $49
million gain in the same period in 2017; and a $3 million net mark-to-market loss on our U.S. government securities portfolio,
compared to a $1 million net mark-to-market loss in the same period in 2017.
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, 2018 to shareholders of record as of June 1, 2018.
Business Highlights
- 65% pretax profit margin for this quarter, up from 57% in the year-ago quarter.
- 63% Electronic Brokerage pretax profit margin for this quarter, up from 59% in the year-ago
quarter.
- Customer equity grew 33% from the year-ago quarter to $129.2 billion and customer debits increased
40% to $29.3 billion.
- Customer accounts increased 27% from the year-ago quarter to 517 thousand.
- Total DARTs1 increased 43% from the year-ago quarter to 939 thousand.
- Brokerage segment equity was $5.1 billion. Total equity was $6.7 billion.
__________________________
|
1
|
|
Daily average revenue trades (DARTs) are based on customer orders. |
|
Segment Overview
Electronic Brokerage
Electronic brokerage segment income before income taxes increased 57%, to $291 million in the quarter ended March 31, 2018,
compared to the same period last year. Net revenues increased 48% to $465 million on higher net interest income and commissions
revenue.
Net interest income increased 56% as average customer credit and margin loan balances and benchmark interest rates increased
from the year-ago quarter. Commissions revenue increased 43% from the year-ago quarter on higher customer volumes in futures,
options and stocks, which increased 53%, 48% and 28%, respectively, from the year-ago quarter. Pretax profit margin was 63% for the
quarter ended March 31, 2018, up from 59% in the same period last year.
Customer accounts grew 27% to 517 thousand and customer equity increased 33% from the year-ago quarter to $129.2 billion. Total
DARTs for cleared and execution-only customers increased 43% to 939 thousand from the year-ago quarter. Cleared DARTs were 876
thousand, 44% higher than in the same period last year.
Market Making
Market making segment income before income taxes increased to $9 million in the quarter ended March 31, 2018, as compared to a
pretax loss of $22 million in the year-ago quarter, during which we began to wind down operations in this segment. The current
quarter’s results reflect higher trading gains and lower operating costs on the remaining operations. In the third quarter of 2017
we completed the transfer of our U.S. options market making business to Two Sigma Securities, LLC and by year-end we had exited the
majority of our market making activities outside the U.S.
Effects of Foreign Currency Diversification
In connection with our currency diversification strategy, we have determined to base our net worth in GLOBALs, a basket of 14
major currencies in which we hold our equity. In this quarter, our currency diversification strategy increased our comprehensive
earnings by $46 million, as the U.S. dollar value of the GLOBAL increased by approximately 0.69%. 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”).
Conference Call Information:
Interactive Brokers Group, Inc. will hold a conference call with investors today, April 17, 2018, at 4:30 p.m. ET to discuss its
quarterly results. Investors who would like to listen to the conference call live should dial 877-324-1965 (U.S. domestic) and
631-291-4512 (international). The number should be dialed approximately ten minutes prior to the start of the conference call. Ask
for the “Interactive Brokers Conference Call.”
The conference call will also be accessible simultaneously, and through replays, as an audio webcast through the Investor
Relations section of the Interactive Brokers web site, www.interactivebrokers.com/ir.
About Interactive Brokers Group, Inc.:
Interactive Brokers Group affiliates provide automated trade execution and custody of securities, commodities and foreign
exchange around the clock on over 120 markets in numerous countries and currencies, from a single IB Universal
Account® to customers worldwide. We service individual investors, hedge funds, proprietary trading groups,
financial advisors and introducing brokers. Focusing on technology and automation for over 41 years has enabled us to equip our
customers with a uniquely sophisticated platform to manage their investment portfolios at the lowest cost. Due to our range of
services, low costs and technology, IBKR is ranked the "Top Online Broker", according to Barron's Best Online Brokers review, March
24, 2018. We strive to provide our customers with advantageous execution prices and trading, risk and portfolio management tools,
research facilities and investment products, all at low prices, positioning them to achieve superior returns on investments.
Cautionary Note Regarding Forward-Looking Statements:
The foregoing information contains certain forward-looking statements that reflect the Company’s current views with respect to
certain current and future events and financial performance. These forward-looking statements are and will be, as the case may be,
subject to many risks, uncertainties and factors relating to the Company’s operations and business environment which may cause the
Company’s actual results to be materially different from any future results, expressed or implied, in these forward-looking
statements. Any forward-looking statements in this release are based upon information available to the Company on the date of this
release. The Company does not undertake to publicly update or revise its forward-looking statements even if experience or future
changes make it clear that any statements expressed or implied therein will not be realized. Additional information on risk factors
that could potentially affect the Company’s financial results may be found in the Company’s filings with the Securities and
Exchange Commission.
|
INTERACTIVE BROKERS GROUP, INC. AND SUBSIDIARIES
|
OPERATING DATA
|
|
TRADE VOLUMES:
|
(in 000's, except %)
|
|
|
|
|
Brokerage
|
|
|
|
|
|
|
|
|
Market |
|
|
|
|
|
|
|
Brokerage |
|
|
|
|
|
|
|
Non |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Avg. Trades |
|
|
|
|
Making |
|
|
|
% |
|
|
|
Cleared |
|
|
|
% |
|
|
|
Cleared |
|
|
|
% |
|
|
|
Total |
|
|
|
% |
|
|
|
per U.S. |
Period
|
|
|
|
Trades
|
|
|
|
Change
|
|
|
|
Trades
|
|
|
|
Change
|
|
|
|
Trades
|
|
|
|
Change
|
|
|
|
Trades
|
|
|
|
Change
|
|
|
|
Trading Day
|
2014 |
|
|
|
64,530 |
|
|
|
|
|
|
|
206,759 |
|
|
|
|
|
|
|
18,055 |
|
|
|
|
|
|
|
289,344 |
|
|
|
|
|
|
|
1,155 |
2015 |
|
|
|
65,937 |
|
|
|
2% |
|
|
|
242,846 |
|
|
|
17% |
|
|
|
18,769 |
|
|
|
4% |
|
|
|
327,553 |
|
|
|
13% |
|
|
|
1,305 |
2016 |
|
|
|
64,038 |
|
|
|
(3%) |
|
|
|
259,932 |
|
|
|
7% |
|
|
|
16,515 |
|
|
|
(12%) |
|
|
|
340,485 |
|
|
|
4% |
|
|
|
1,354 |
2017 |
|
|
|
31,282 |
|
|
|
(51%) |
|
|
|
265,501 |
|
|
|
2% |
|
|
|
14,835 |
|
|
|
(10%) |
|
|
|
311,618 |
|
|
|
(8%) |
|
|
|
1,246 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1Q2017 |
|
|
|
12,224 |
|
|
|
|
|
|
|
62,914 |
|
|
|
|
|
|
|
3,665 |
|
|
|
|
|
|
|
78,803 |
|
|
|
|
|
|
|
1,271 |
1Q2018 |
|
|
|
4,469 |
|
|
|
(63%) |
|
|
|
89,621 |
|
|
|
42% |
|
|
|
4,695 |
|
|
|
28% |
|
|
|
98,785 |
|
|
|
25% |
|
|
|
1,619 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4Q2017 |
|
|
|
4,263 |
|
|
|
|
|
|
|
71,502 |
|
|
|
|
|
|
|
3,800 |
|
|
|
|
|
|
|
79,565 |
|
|
|
|
|
|
|
1,273 |
1Q2018 |
|
|
|
4,469 |
|
|
|
5% |
|
|
|
89,621 |
|
|
|
25% |
|
|
|
4,695 |
|
|
|
24% |
|
|
|
98,785 |
|
|
|
24% |
|
|
|
1,619 |
|
CONTRACT AND SHARE VOLUMES: |
(in 000's, except %) |
|
TOTAL
|
|
|
|
Options |
|
|
|
% |
|
|
|
Futures 1 |
|
|
|
% |
|
|
|
Stocks |
|
|
|
% |
Period |
|
|
|
(contracts)
|
|
|
|
Change
|
|
|
|
(contracts)
|
|
|
|
Change
|
|
|
|
(shares)
|
|
|
|
Change
|
2014 |
|
|
|
631,265 |
|
|
|
|
|
|
|
123,048 |
|
|
|
|
|
|
|
153,613,174 |
|
|
|
|
2015 |
|
|
|
634,388 |
|
|
|
0% |
|
|
|
140,668 |
|
|
|
14% |
|
|
|
172,742,520 |
|
|
|
12% |
2016 |
|
|
|
572,834 |
|
|
|
(10%) |
|
|
|
143,287 |
|
|
|
2% |
|
|
|
155,439,227 |
|
|
|
(10%) |
2017 |
|
|
|
395,885 |
|
|
|
(31%) |
|
|
|
124,123 |
|
|
|
(13%) |
|
|
|
220,247,921 |
|
|
|
42% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1Q2017 |
|
|
|
121,155 |
|
|
|
|
|
|
|
30,366 |
|
|
|
|
|
|
|
53,300,920 |
|
|
|
|
1Q2018 |
|
|
|
115,438 |
|
|
|
(5%) |
|
|
|
43,449 |
|
|
|
43% |
|
|
|
68,380,398 |
|
|
|
28% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4Q2017 |
|
|
|
89,381 |
|
|
|
|
|
|
|
31,445 |
|
|
|
|
|
|
|
58,373,129 |
|
|
|
|
1Q2018 |
|
|
|
115,438 |
|
|
|
29% |
|
|
|
43,449 |
|
|
|
38% |
|
|
|
68,380,398 |
|
|
|
17% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MARKET MAKING
|
|
|
|
Options |
|
|
|
% |
|
|
|
Futures 1 |
|
|
|
% |
|
|
|
Stocks |
|
|
|
% |
Period
|
|
|
|
(contracts)
|
|
|
|
Change
|
|
|
|
(contracts)
|
|
|
|
Change
|
|
|
|
(shares)
|
|
|
|
Change
|
2014 |
|
|
|
344,741 |
|
|
|
|
|
|
|
15,668 |
|
|
|
|
|
|
|
12,025,822 |
|
|
|
|
2015 |
|
|
|
335,406 |
|
|
|
(3%) |
|
|
|
14,975 |
|
|
|
(4%) |
|
|
|
15,376,076 |
|
|
|
28% |
2016 |
|
|
|
307,377 |
|
|
|
(8%) |
|
|
|
14,205 |
|
|
|
(5%) |
|
|
|
13,082,887 |
|
|
|
(15%) |
2017 |
|
|
|
102,025 |
|
|
|
(67%) |
|
|
|
5,696 |
|
|
|
(60%) |
|
|
|
7,139,622 |
|
|
|
(45%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1Q2017 |
|
|
|
52,291 |
|
|
|
|
|
|
|
2,511 |
|
|
|
|
|
|
|
1,954,775 |
|
|
|
|
1Q2018 |
|
|
|
13,256 |
|
|
|
(75%) |
|
|
|
935 |
|
|
|
(63%) |
|
|
|
2,817,831 |
|
|
|
44% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4Q2017 |
|
|
|
11,228 |
|
|
|
|
|
|
|
1,002 |
|
|
|
|
|
|
|
1,750,178 |
|
|
|
|
1Q2018 |
|
|
|
13,256 |
|
|
|
18% |
|
|
|
935 |
|
|
|
(7%) |
|
|
|
2,817,831 |
|
|
|
61% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BROKERAGE TOTAL
|
|
|
|
Options |
|
|
|
% |
|
|
|
Futures 1 |
|
|
|
% |
|
|
|
Stocks |
|
|
|
% |
Period |
|
|
|
(contracts)
|
|
|
|
Change
|
|
|
|
(contracts)
|
|
|
|
Change
|
|
|
|
(shares)
|
|
|
|
Change
|
2014 |
|
|
|
286,524 |
|
|
|
|
|
|
|
107,380 |
|
|
|
|
|
|
|
141,587,352 |
|
|
|
|
2015 |
|
|
|
298,982 |
|
|
|
4% |
|
|
|
125,693 |
|
|
|
17% |
|
|
|
157,366,444 |
|
|
|
11% |
2016 |
|
|
|
265,457 |
|
|
|
(11%) |
|
|
|
129,082 |
|
|
|
3% |
|
|
|
142,356,340 |
|
|
|
(10%) |
2017 |
|
|
|
293,860 |
|
|
|
11% |
|
|
|
118,427 |
|
|
|
(8%) |
|
|
|
213,108,299 |
|
|
|
50% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1Q2017 |
|
|
|
68,864 |
|
|
|
|
|
|
|
27,855 |
|
|
|
|
|
|
|
51,346,145 |
|
|
|
|
1Q2018 |
|
|
|
102,182 |
|
|
|
48% |
|
|
|
42,514 |
|
|
|
53% |
|
|
|
65,562,567 |
|
|
|
28% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4Q2017 |
|
|
|
78,153 |
|
|
|
|
|
|
|
30,443 |
|
|
|
|
|
|
|
56,622,951 |
|
|
|
|
1Q2018 |
|
|
|
102,182 |
|
|
|
31% |
|
|
|
42,514 |
|
|
|
40% |
|
|
|
65,562,567 |
|
|
|
16% |
|
|
1 Includes options on futures. |
|
|
|
INTERACTIVE BROKERS GROUP, INC. AND SUBSIDIARIES
|
OPERATING DATA, CONTINUED
|
|
BROKERAGE CLEARED
|
|
|
|
Options |
|
|
|
% |
|
|
|
Futures 1 |
|
|
|
% |
|
|
|
Stocks |
|
|
|
% |
Period
|
|
|
|
(contracts)
|
|
|
|
Change
|
|
|
|
(contracts)
|
|
|
|
Change
|
|
|
|
(shares)
|
|
|
|
Change
|
2014 |
|
|
|
225,662 |
|
|
|
|
|
|
|
106,074 |
|
|
|
|
|
|
|
137,153,132 |
|
|
|
|
2015 |
|
|
|
244,356 |
|
|
|
8% |
|
|
|
124,206 |
|
|
|
17% |
|
|
|
153,443,988 |
|
|
|
12% |
2016 |
|
|
|
227,413 |
|
|
|
(7%) |
|
|
|
128,021 |
|
|
|
3% |
|
|
|
138,523,932 |
|
|
|
(10%) |
2017 |
|
|
|
253,304 |
|
|
|
11% |
|
|
|
116,858 |
|
|
|
(9%) |
|
|
|
209,435,662 |
|
|
|
51% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1Q2017 |
|
|
|
60,366 |
|
|
|
|
|
|
|
27,528 |
|
|
|
|
|
|
|
50,397,970 |
|
|
|
|
1Q2018 |
|
|
|
87,705 |
|
|
|
45% |
|
|
|
41,742 |
|
|
|
52% |
|
|
|
64,494,943 |
|
|
|
28% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4Q2017 |
|
|
|
66,232 |
|
|
|
|
|
|
|
30,041 |
|
|
|
|
|
|
|
55,714,749 |
|
|
|
|
1Q2018 |
|
|
|
87,705 |
|
|
|
32% |
|
|
|
41,742 |
|
|
|
39% |
|
|
|
64,494,943 |
|
|
|
16% |
|
|
1 Includes options on futures. |
|
BROKERAGE STATISTICS |
(in 000's, except % and where noted) |
|
Year over Year |
|
|
|
|
1Q2018
|
|
|
|
|
1Q2017
|
|
|
|
% Change
|
Total Accounts |
|
|
|
|
517 |
|
|
|
|
406 |
|
|
|
27% |
Customer Equity (in billions)1 |
|
|
|
$ |
129.2 |
|
|
|
$ |
96.8 |
|
|
|
33% |
Cleared DARTs |
|
|
|
|
876 |
|
|
|
|
609 |
|
|
|
44% |
Total Customer DARTs |
|
|
|
|
939 |
|
|
|
|
657 |
|
|
|
43% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cleared Customers (in $'s, except DART per account) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commission per DART |
|
|
|
$ |
4.04 |
|
|
|
$ |
4.01 |
|
|
|
1% |
DART per Avg. Account (Annualized) |
|
|
|
|
439 |
|
|
|
|
385 |
|
|
|
14% |
Net Revenue per Avg. Account (Annualized) |
|
|
|
$ |
3,768 |
|
|
|
$ |
3,157 |
|
|
|
19% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consecutive Quarters |
|
|
|
|
1Q2018
|
|
|
|
|
4Q2017
|
|
|
|
% Change
|
Total Accounts |
|
|
|
|
517 |
|
|
|
|
483 |
|
|
|
7% |
Customer Equity (in billions)1 |
|
|
|
$ |
129.2 |
|
|
|
$ |
124.8 |
|
|
|
4% |
Cleared DARTs |
|
|
|
|
876 |
|
|
|
|
681 |
|
|
|
29% |
Total Customer DARTs |
|
|
|
|
939 |
|
|
|
|
730 |
|
|
|
29% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cleared Customers (in $'s, except DART per account) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commission per DART |
|
|
|
$ |
4.04 |
|
|
|
$ |
3.92 |
|
|
|
3% |
DART per Avg. Account (Annualized) |
|
|
|
|
439 |
|
|
|
|
363 |
|
|
|
21% |
Net Revenue per Avg. Account (Annualized) |
|
|
|
$ |
3,768 |
|
|
|
$ |
3,318 |
|
|
|
14% |
|
|
1 Excluded non-customers.
|
|
|
INTERACTIVE BROKERS GROUP, INC. AND SUBSIDIARIES
|
NET INTEREST MARGIN
|
(UNAUDITED)
|
|
|
|
|
|
|
|
|
Three Months |
|
|
|
|
Ended March 31, |
|
|
|
|
2018 |
|
2017 |
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions) |
Average interest-earning assets |
|
|
|
|
|
|
|
|
Segregated cash and securities |
|
|
|
$ |
20,989 |
|
$ |
24,637 |
Customer margin loans |
|
|
|
|
29,428 |
|
|
19,802 |
Securities borrowed |
|
|
|
|
3,019 |
|
|
3,973 |
Other interest-earning assets |
|
|
|
|
3,943 |
|
|
2,258 |
FDIC sweeps1 |
|
|
|
|
781 |
|
|
35 |
|
|
|
|
$ |
58,160 |
|
$ |
50,705 |
|
|
|
|
|
|
|
|
|
Average interest-bearing liabilities |
|
|
|
|
|
|
|
|
Customer credit balances |
|
|
|
$ |
47,865 |
|
$ |
43,115 |
Securities loaned |
|
|
|
|
4,341 |
|
|
3,695 |
|
|
|
|
$ |
52,206 |
|
$ |
46,810 |
|
|
|
|
|
|
|
|
|
Net interest income |
|
|
|
|
|
|
|
|
Segregated cash and securities, net |
|
|
|
$ |
74 |
|
$ |
43 |
Customer margin loans2 |
|
|
|
|
139 |
|
|
75 |
Securities borrowed and loaned, net |
|
|
|
|
47 |
|
|
33 |
Customer credit balances, net2 |
|
|
|
|
(49) |
|
|
(13) |
Other net interest income3 |
|
|
|
|
11 |
|
|
4 |
Net interest income |
|
|
|
$ |
222 |
|
$ |
142 |
|
|
|
|
|
|
|
|
|
Net interest margin ("NIM") |
|
|
|
|
1.55% |
|
|
1.12% |
|
|
|
|
|
|
|
|
|
Annualized yields |
|
|
|
|
|
|
|
|
Segregated cash and securities |
|
|
|
|
1.43% |
|
|
0.71% |
Customer margin loans |
|
|
|
|
1.92% |
|
|
1.54% |
Customer credit balances |
|
|
|
|
0.42% |
|
|
0.12% |
|
|
|
|
|
|
|
1Represents the average amount of customer cash swept into FDIC-insured banks as part of
our Insured
Bank Deposit Sweep Program. This item is not recorded in the Company's consolidated statements of
financial condition. Income derived from program deposits is reported in other net interest income in the
table above.
|
|
2Interest income and interest expense on customer margin loans and customer credit
balances,
respectively, are calculated on daily cash balances within each customer’s account on a net basis, which
may result in an offset of balances across multiple account segments (e.g., between securities and
commodities segments).
|
|
3Includes income from financial instruments which has the same characteristics as
interest, but is reported
in other income in the Company's consolidated statements of comprehensive income.
|
|
|
INTERACTIVE BROKERS GROUP, INC. AND SUBSIDIARIES
|
SEGMENT FINANCIAL INFORMATION
|
(UNAUDITED)
|
|
|
|
|
|
|
|
Three Months |
|
|
|
|
|
|
Ended March 31, |
|
|
|
|
|
|
2018 |
|
2017 |
|
|
|
|
|
|
(in millions) |
|
|
|
|
|
|
|
|
|
|
|
Electronic Brokerage |
|
Net revenues |
|
|
|
$ |
465 |
|
$ |
314 |
|
|
Non-interest expenses |
|
|
|
|
174 |
|
|
129 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income taxes |
|
|
|
$ |
291 |
|
$ |
185 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Pre-tax profit margin |
|
|
|
|
63% |
|
|
59% |
|
|
|
|
|
|
|
|
|
|
|
Market Making |
|
Net revenues |
|
|
|
$ |
21 |
|
$ |
8 |
|
|
Non-interest expenses |
|
|
|
|
12 |
|
|
30 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) before income taxes |
|
|
|
$ |
9 |
|
$ |
(22) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Pre-tax profit (loss) margin |
|
|
|
|
43% |
|
|
(275%) |
|
|
|
|
|
|
|
|
|
|
|
Corporate 1 |
|
Net revenues |
|
|
|
$ |
41 |
|
$ |
52 |
|
|
Non-interest expenses |
|
|
|
|
1 |
|
|
2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income taxes |
|
|
|
$ |
40 |
|
$ |
50 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
Net revenues |
|
|
|
$ |
527 |
|
$ |
374 |
|
|
Non-interest expenses |
|
|
|
|
187 |
|
|
161 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income taxes |
|
|
|
$ |
340 |
|
$ |
213 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Pre-tax profit margin |
|
|
|
|
65% |
|
|
57% |
|
|
|
|
|
|
|
1Corporate includes corporate related activities as well as inter-segment eliminations
and gains and losses on positions held as part of our
overall currency diversification strategy.
|
|
|
INTERACTIVE BROKERS GROUP, INC. AND SUBSIDIARIES
|
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
|
(UNAUDITED)
|
|
|
|
|
|
Three Months |
|
|
|
|
Ended March 31, |
|
|
|
|
2018 |
|
2017 |
|
|
|
|
(in millions, except share and per share data) |
|
|
|
|
|
|
|
|
|
Revenues: |
|
|
|
|
|
|
|
|
Trading gains |
|
|
|
$ |
13 |
|
$ |
2 |
Commissions |
|
|
|
|
220 |
|
|
154 |
Interest income |
|
|
|
|
311 |
|
|
177 |
Other income |
|
|
|
|
77 |
|
|
76 |
|
|
|
|
|
|
|
|
|
Total revenues |
|
|
|
|
621 |
|
|
409 |
|
|
|
|
|
|
|
|
|
Interest expense |
|
|
|
|
94 |
|
|
35 |
|
|
|
|
|
|
|
|
|
Total net revenues |
|
|
|
|
527 |
|
|
374 |
|
|
|
|
|
|
|
|
|
Non-interest expenses: |
|
|
|
|
|
|
|
|
Execution and clearing |
|
|
|
|
73 |
|
|
61 |
Employee compensation and benefits |
|
|
|
|
70 |
|
|
62 |
Occupancy, depreciation and amortization |
|
|
|
|
12 |
|
|
13 |
Communications |
|
|
|
|
6 |
|
|
8 |
General and administrative |
|
|
|
|
23 |
|
|
16 |
Customer bad debt |
|
|
|
|
3 |
|
|
1 |
|
|
|
|
|
|
|
|
|
Total non-interest expenses |
|
|
|
|
187 |
|
|
161 |
|
|
|
|
|
|
|
|
|
Income before income taxes |
|
|
|
|
340 |
|
|
213 |
|
|
|
|
|
|
|
|
|
Income tax expense |
|
|
|
|
21 |
|
|
18 |
|
|
|
|
|
|
|
|
|
Net income |
|
|
|
|
319 |
|
|
195 |
|
|
|
|
|
|
|
|
|
Net income attributable to noncontrolling interests |
|
|
|
|
273 |
|
|
171 |
|
|
|
|
|
|
|
|
|
Net income available for common stockholders |
|
|
|
$ |
46 |
|
$ |
24 |
|
|
|
|
|
|
|
|
|
Earnings per share: |
|
|
|
|
|
|
|
|
Basic |
|
|
|
$ |
0.64 |
|
$ |
0.35 |
Diluted |
|
|
|
$ |
0.63 |
|
$ |
0.34 |
|
|
|
|
|
|
|
|
|
Weighted average common shares outstanding: |
|
|
|
|
|
|
|
|
Basic |
|
|
|
|
71,475,950 |
|
|
67,985,107 |
Diluted |
|
|
|
|
72,512,462 |
|
|
69,157,614 |
|
|
|
|
|
|
|
|
|
Comprehensive income: |
|
|
|
|
|
|
|
|
Net income available for common stockholders |
|
|
|
$ |
46 |
|
$ |
24 |
Other comprehensive income: |
|
|
|
|
|
|
|
|
Cumulative translation adjustment, before income taxes |
|
|
|
|
1 |
|
|
4 |
Income taxes related to items of other comprehensive income |
|
|
|
|
- |
|
|
- |
Other comprehensive income, net of tax |
|
|
|
|
1 |
|
|
4 |
Comprehensive income available for common stockholders |
|
|
|
$ |
47 |
|
$ |
28 |
|
|
|
|
|
|
|
|
|
Comprehensive income attributable to noncontrolling interests: |
|
|
|
|
|
|
|
|
Net income attributable to noncontrolling interests |
|
|
|
$ |
273 |
|
$ |
171 |
Other comprehensive income - cumulative translation adjustment |
|
|
|
|
7 |
|
|
19 |
Comprehensive income attributable to noncontrolling interests |
|
|
|
$ |
280 |
|
$ |
190 |
|
|
INTERACTIVE BROKERS GROUP, INC. AND SUBSIDIARIES
|
EARNINGS PER SHARE ON COMPREHENSIVE INCOME
|
(UNAUDITED)
|
|
|
|
|
|
Three Months |
|
|
|
|
Ended March 31, |
|
|
|
|
2018 |
|
2017 |
|
|
|
|
(in millions, except share and per share data) |
|
|
|
|
|
|
|
|
|
Comprehensive income available for common stockholders, net of tax |
|
|
|
$ |
47 |
|
$ |
28 |
|
|
|
|
|
|
|
|
|
Comprehensive earnings per share: |
|
|
|
|
|
|
|
|
Basic |
|
|
|
$ |
0.66 |
|
$ |
0.41 |
Diluted |
|
|
|
$ |
0.65 |
|
$ |
0.40 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average common shares outstanding: |
|
|
|
|
|
|
|
|
Basic |
|
|
|
|
71,475,950 |
|
|
67,985,107 |
Diluted |
|
|
|
|
72,512,462 |
|
|
69,157,614 |
|
|
INTERACTIVE BROKERS GROUP, INC. AND SUBSIDIARIES
|
CONDENSED CONSOLIDATED BALANCE SHEETS
|
(UNAUDITED)
|
|
|
|
|
|
|
|
|
|
|
March 31,
2018
|
|
|
December 31,
2017
|
|
|
|
|
|
|
|
|
|
(in millions) |
|
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
|
|
|
|
|
|
|
$ |
1,901 |
|
|
$ |
1,732 |
Cash and securities - segregated for regulatory purposes |
|
|
|
|
|
|
|
|
|
20,268 |
|
|
|
20,232 |
Securities borrowed |
|
|
|
|
|
|
|
|
|
2,968 |
|
|
|
2,957 |
Securities purchased under agreements to resell |
|
|
|
|
|
|
|
|
|
677 |
|
|
|
2,035 |
Financial instruments owned, at fair value |
|
|
|
|
|
|
|
|
|
2,415 |
|
|
|
3,154 |
Receivables from customers, net of allowance for doubtful accounts |
|
|
|
|
|
|
|
|
|
29,464 |
|
|
|
29,821 |
Receivables from brokers, dealers and clearing organizations |
|
|
|
|
|
|
|
|
|
1,002 |
|
|
|
823 |
Other assets |
|
|
|
|
|
|
|
|
|
398 |
|
|
|
408 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets |
|
|
|
|
|
|
|
|
$ |
59,093 |
|
|
$ |
61,162 |
|
Liabilities and equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Short-term borrowings |
|
|
|
|
|
|
|
|
$ |
19 |
|
|
$ |
15 |
Securities loaned |
|
|
|
|
|
|
|
|
|
4,171 |
|
|
|
4,444 |
Securities sold under agreements to repurchase |
|
|
|
|
|
|
|
|
|
- |
|
|
|
1,316 |
Financial instruments sold but not yet purchased, at fair value |
|
|
|
|
|
|
|
|
|
242 |
|
|
|
767 |
Other payables: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Customers |
|
|
|
|
|
|
|
|
|
47,423 |
|
|
|
47,548 |
Brokers, dealers and clearing organizations |
|
|
|
|
|
|
|
|
|
170 |
|
|
|
283 |
Other payables |
|
|
|
|
|
|
|
|
|
362 |
|
|
|
356 |
|
|
|
|
|
|
|
|
|
|
47,955 |
|
|
|
48,187 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities |
|
|
|
|
|
|
|
|
|
52,387 |
|
|
|
54,729 |
|
Equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders' equity |
|
|
|
|
|
|
|
|
|
1,132 |
|
|
|
1,090 |
Noncontrolling interests |
|
|
|
|
|
|
|
|
|
5,574 |
|
|
|
5,343 |
Total equity |
|
|
|
|
|
|
|
|
|
6,706 |
|
|
|
6,433 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and equity |
|
|
|
|
|
|
|
|
$ |
59,093 |
|
|
$ |
61,162 |
|
|
|
|
|
March 31, 2018 |
|
|
|
December 31, 2017 |
Ownership of IBG LLC Membership Interests |
|
|
Interests
|
|
|
%
|
|
|
|
Interests
|
|
|
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
IBG, Inc. |
|
|
71,481,136 |
|
|
17.4% |
|
|
|
71,479,604 |
|
|
|
17.4% |
Noncontrolling interests (IBG Holdings LLC) |
|
|
340,229,444 |
|
|
82.6% |
|
|
|
340,229,444 |
|
|
|
82.6% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total IBG LLC membership interests |
|
|
411,710,580 |
|
|
100.0% |
|
|
|
411,709,048 |
|
|
|
100.0% |
For Interactive Brokers Group, Inc.
Investors:
Nancy Stuebe, 203-618-4070
or
Media:
Kalen Holliday, 203-913-1369
View source version on businesswire.com: https://www.businesswire.com/news/home/20180417006557/en/