Interactive Brokers sees 28% revenue drop in Q1 2022

Steffy Bogdanova
April 20, 2022 9:51 am

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

According to its financial report, the broker earned $645 million in net revenue in Q1 2022. This is nearly a 28% drop from $893 million last year. On an adjusted basis, the figure was $692 million, compared to $796 million in Q1 2021.

Between January and March, pre-tax income came in at $394 million, with the adjusted figure at $441 million. These numbers were down from the figures the previous year – $639 million and $542 million, respectively.

The company noted that its commission-based revenue fell 15% to $349 million. The drop was attributed to unusually active trading period in 2021, but it was helped by higher customer options and futures trading volumes.

Interactive Brokers

The net interest income also fell 8% to $282 million, due to a drop in securities lending activity but was offset by gains on margin lending and segregated cash balances. However, the other income decreased by $159 million to a loss of $39 million.

Pre-tax profit margin came in at 61%, compared to Q1 2021 when it was 72%. The adjusted profit margin was 64% in the first quarter and 68% a year ago.

Interactive Brokers saw diluted earnings of $0.74 per share in Q1, compared to last year’s $1.16. The adjusted figure stood at $0.82 per share, down from $0.98 in the same period last year. The company declared a quarterly cash dividend of $0.10 per share.

However, the broker reported 36% increase in number of customer accounts to 1.81 million during the first quarter. Customer equity was also up by 8% to $355.9 billion. DARTs dropped 24% to 2.52 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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