Interactive Brokers has released its financial results for the first quarter of 2023. The US trading platform announced that between January and March 2023, it has registered revenue of $1,056 million.
According to the numbers, the figure jumped 63.7% compared to the first quarter of the previous year.
On an adjusted basis, the numbers reached $1,015 million from $692 million.
Reported income before tax surged 93% to $761 million for the current quarter. The number was 63% higher on adjusted basis, reaching $720 million.
Revenue generated from commission was only 2% higher, reaching $357 million.
The revenue earned from commissions rose only by 2% and amounted to $357 million. This was due to a surge in contract volumes in futures, coupled with higher average trade sizes in both options and futures. However, the increase was offset by reduced trading volume in stocks among customers.
During the first quarter of 2022, income earned from the interest after deducting expenses surged significantly, registering a growth of 126%, and reaching $637 million. This was attributed to an uptick in the benchmark interest rates, along with an increase in the credit balances of customers.
Between January and March, other income came down to $58 million with a $19 million gain. This figure was comprised of a $39 million related to US government securities portfolio, all of which matures within three months, and $19 million related to the company’s currency diversification strategy.
During the quarter, the reported pretax profit margin stood at 72%, while the adjusted margin was 71%. In comparison, during the same period last year, the reported pretax margin was 61%, and the adjusted margin was 64%.
The reported diluted earnings for the quarter stood at $1.42 with the adjusted figure at $1.35, a yearly rise of 91.9% and 64.6%, respectively.
Customers
Interactive Brokers reported 21% increase in number of customer accounts to 2.20 million during the first quarter. However, Daily Average Revenue Trades (DARTs) fell 19% to 2.05 million and cleared DARTs came in at 1.85 million, also seeing a decrease of 17%.
Customer equity went down by 4% to $343.1 billion, while customer credits rose 4% to $96.6 billion. The customer margin loans for the period fell by 18% to $39.4 billion.
Interactive Brokers reported a 15% drop in DARTs in February as they came in at 2.121 million. The global electronic broker also recently announced the launch of cryptocurrency trading in Hong Kong, following a growing interest shown by investor clients.
