Interactive Brokers Group Inc.’s (NasdaqGS:IBKR - News) Electronic Brokerage segment has announced its monthly brokerage data for January 2012. The segment under review clears and settles trades globally for both individual and institutional clients.
Interactive’s total customer accounts for January were 190,600, up 18% from 161,000 in January 2011 and 1% from 189,100 in December 2011. Moreover, total customer Daily Average Revenue Trades (DARTs) were in line with the prior-year month and jumped 12% from the prior month to 418,000.
Further during January, Interactive recorded Cleared Customer DARTs of 381,000 at par with January 2011 and up from 343,000 in December 2011. On an annualized basis, the company reported Cleared Average DART per customer account of 504,000, down from 602,000 in the comparable month last year but up from 459,000 recorded in the previous month.
Interactive’s total options contracts fell 8% from the prior-year month but grew 9% from the prior month to 20,422 in January 2012. However, during the reported month, the company’s futures contracts stood at 5,847, down from 6,383 in the year-ago month and 6,365 in the previous month.
Interactive also provides period-end statistics for customer equity, customer credit balances and customer margin loan balances. For the period ended January 2012, customer equity stood at $27.1 billion, growing 19% year over year and 8% sequentially.
Additionally, Interactive’s Electronic Brokerage segment recorded customer margin loan balances of $7.4 billion in the reported month, flat year over year and up 6% sequentially. The company’s customer credit balances of $17.6 billion at January 2012-end jumped 17% from $15.0 billion at January 2011-end and 6% from $16.6 billion at December 2011-end.
Though Interactive’s fundamentals remain strong with a liquid balance sheet, sturdy capital base and high barriers to entry, we remain concerned about the Market Making segment’s ability to consistently generate sufficient returns for funding dividend payments. However, continued strong performance of its brokerage business and the restoring of quarterly dividend were quite impressive.
Currently, Interactive retains a Zacks #2 Rank (a short-term ‘Buy’ rating). However, one of its peers, Knight Capital Group Inc. (NYSE:KCG - News) retains a Zacks # 3 Rank (a short-term ‘Hold’ rating).
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