Interactive Brokers has released its financial results for the second quarter of 2023. The US trading platform announced that between April and June 2023, it has registered revenue of $1,000 million.
According to the numbers, the figure jumped 56% compared to the first quarter of the previous year, when it recorded $656 million. On an adjusted basis, the numbers reached $1,064 million from $717 million in Q2 2022.
Based on the previous quarter, however, the broker saw a 5% decrease from Q1’s $1,056 million revenue.
Reported income before tax dropped 14% to $652 million for the current quarter from $761 million in the previous one.
On yearly basis, Interactive Brokers’s income before tax increased 66% YoY to $652 million, with the adjusted number climbing 58% to $716 million. Additionally, income from interest paid by clients rose 9% from Q1 to $694 million during Q2.
During the quarter, the electronic brokerage reported pretax profit margin of 65%, while the last quarter, this was 72%.
The reported diluted earnings for the quarter stood at $1.20 with the adjusted figure at $1.32, a monthly decrease of 15% and 2%, respectively.
Interactive Brokers reported 4% QoQ increase in number of customer accounts to 2.29 million during the first quarter. However, Daily Average Revenue Trades (DARTs) fell 8.8% QoQ to 1.87 million and cleared DARTs came in at 1.67 million, also seeing a decrease of 9.7% QoQ.
The American online broker noted that its financial results were affected by the US Securities and Exchange Commission’s recent regulatory actions.
Interactive Brokers stated:
General and administrative expenses increased $43 million to $85 million. The increase is largely attributable to reserves related to the previously-disclosed regulatory investigations into the use of unapproved electronic messaging and record-keeping requirements. As has been publicly reported, the SEC and CFTC are conducting an industry-wide sweep that has resulted in substantial settlements with other financial services firms.
Interactive Brokers reported that its DARTs came in at 1.960 million in June, which was 5% higher compared to the previous month.
