Interactive Brokers sees 13% revenue drop in Q2 2022

Steffy Bogdanova
July 20, 2022 3:35 pm

Interactive Brokers has published its financial results for the second quarter of 2022. The US trading platform saw a significant decline in revenue and income in the last three months.

According to its financial report, the broker earned $656 million in net revenue in Q2 2022. This is nearly a 13% decrease from the $754 million during the same period last year. On an adjusted basis, the figure was $717 million.

The company noted that its commission-based revenue was up 5% to $322 million. The numbers were pushed by high customer options and futures trading volume with a lower stock volume.

The net interest income also increased 27% to $348 million. However, it was offset by a $175 million dip in income from the other sources to a loss of $57 million. The segment was pushed to losses by investment of several non-recurrence gains.

Interactive Brokers

Between April and June, pre-tax income came in at $392 million, with the adjusted figure at $453 million. These numbers were down from the figures of the second quarter the previous year – $451 million and $437 million, respectively.

Pre-tax profit margin fell to 60%, compared to Q2 2021 when it was 72%. The adjusted profit margin was 63% in the second quarter and 67% a year ago.

Clients

Despite the decline in revenue, the Interactive Brokers reported 36% increase in number of customer accounts to 1.92 million during the second quarter. Customer credit also increased by 13% to $42.6 billion.

However, customer equity went down by 19% to $294.8 billion. DARTs also dropped 6% to 2.17 million.

LeapRate Analyst

Experienced writer and journalist, working in the global online trading sector, Steffy is the Editor of LeapRate. She has previous experience as a copywriter and has been with the company since January 2020. Steffy has a British and American Studies degree from St. Kliment Ochridski University in Sofia.
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