Interactive Brokers Group Inc (IBKR) Reports Strong Q3 2023 Earnings
Interactive Brokers Group Inc (NASDAQ:IBKR) reported a GAAP diluted EPS of $1.56, up from $0.97 in the year-ago quarter.
The company's GAAP net revenues for Q3 2023 stood at $1,145 million, a significant increase from $790 million in the same period last year.
Income before income taxes was $840 million, compared to $523 million in the year-ago quarter.
The company declared a quarterly cash dividend of $0.10 per share, payable on December 14, 2023.
Interactive Brokers Group Inc (NASDAQ:IBKR) released its earnings report for the third quarter of 2023 on October 17, 2023. The company reported a GAAP diluted earnings per share (EPS) of $1.56, up from $0.97 in the same period last year. Adjusted EPS was $1.55, compared to $1.08 in the year-ago quarter.
Financial Performance
Interactive Brokers Group Inc (NASDAQ:IBKR) reported GAAP net revenues of $1,145 million for the current quarter, a significant increase from $790 million in the same period last year. Adjusted net revenues were $1,139 million. The company's income before income taxes was $840 million for the current quarter, up from $523 million in the year-ago quarter. Adjusted income before income taxes was $834 million.
Dividend Announcement
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, 2023, to shareholders of record as of December 1, 2023.
Effects of Foreign Currency Diversification
Interactive Brokers Group Inc (NASDAQ:IBKR) reported that its currency diversification strategy decreased its comprehensive earnings by $93 million in the quarter, as the U.S. dollar value of the GLOBAL decreased by approximately 0.66%. The effects of the currency diversification strategy are reported as components of Other Income (loss of $17 million) and Other Comprehensive Income (loss of $76 million).
Financial Statements Summary
The company's consolidated statements of income showed revenues from commissions at $333 million, other fees and services at $52 million, and other income at $27 million. Total non-interest income was $412 million. Interest income was $1,643 million while interest expense was $910 million, resulting in total net interest income of $733 million.
The company's consolidated statements of comprehensive income showed net income available for common stockholders at $167 million. Other comprehensive loss, net of tax, was $19 million, resulting in comprehensive income available for common stockholders at $148 million.
The company's condensed consolidated statements of financial condition showed total assets at $120,636 million as of September 30, 2023, up from $115,143 million as of December 31, 2022. Total liabilities were $107,372 million, and total equity was $13,264 million.
Operating Data
The company's operating data showed a decrease in customer trades and an increase in principal trades compared to the same period last year. The total average trades per U.S. trading day were 3,002, down from 3,037 in the same period last year.
Interactive Brokers Group Inc (NASDAQ:IBKR) continues to demonstrate strong financial performance, with significant increases in net revenues and income before income taxes. The company's strategy of currency diversification, while impacting comprehensive earnings, is part of its broader financial strategy.
This article first appeared on GuruFocus.
