Interactive Brokers has unveiled its financial results for Q4 2023, showcasing a notable revenue and net income increase. The brokerage firm reported a net revenue of $1.139 billion, with an adjusted total slightly higher at $1.149 billion. This performance marks a significant rise from the same quarter in the previous year, where net revenue was $976 million and the adjusted figure was $958 million.
Interactive Brokers Q4 2023 Revenues Surge on Options Volume
The company earned $816 million before tax, with an adjusted income of $831 million. This is a substantial increase from the $689 million income before tax (adjusted to $671 million) reported in the corresponding quarter of the previous year.
Diluted earnings per share were reported at $1.48, with an adjusted value of $1.52, showing a considerable improvement from the same quarter of the previous year.
The firm experienced a 5% increase in commission revenue, reaching $348 million. The rise was primarily due to a 21% increase in options contract volumes and a 4% rise in futures contract volumes, although there was a 22% decrease in stock share volume.
Net interest income saw a 29% jump to $730 million thanks to higher benchmark interest rates, increased customer margin loans, and growing customer credit balances. Despite a $31 million drop in other income, amounting to $6 million, the firm successfully managed the challenges associated with its currency diversification strategy and investments in companies like Tiger Brokers.
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Customer trading volumes played a significant role, with execution, clearing, and distribution fees expenses climbing 11% to $100 million, primarily due to increased trading in options and futures.
The firm reported a 23% growth in customer accounts, totalling 2.56 million, and a 39% increase in customer equity, reaching $426 billion. The Board of Directors announced a quarterly cash dividend of $0.10 per share. Interactive Brokers solidified its financial standing with a total equity of $14.1 billion.
For the third quarter of 2023, Interactive Brokers recorded a net revenue of $1.145 billion. Diluted earnings per share reached $1.56, exceeding market predictions and highlighting the company’s robust growth.
Commission revenue rose 4% to $333 million, driven by an 18% increase in options trading volume. The firm also reported a 21% rise in the number of accounts and a 29% increase in customer equity, totalling $369.8 billion.
