Interactive Brokers has published its financial results for the fourth quarter of 2022. The US trading platform registered revenue of $976 million in the final three months of the year.
According to the numbers, the revenue jumped 62% compared to the fourth quarter of the previous year. Additionally, there was a 23.5% increase from the third quarter of 2022.
On an adjusted basis, the figure reached $958 million from $683 million.
The net interest income surged 92% to $565 million, with higher customer futures trading volume and larger average trade size in options, tempered by lower customer stock trading volume. Revenue generated from commission was only 3% higher, reaching $331 million.
Between October and December, other income rose to $107 million from $104 million in Q4 2021. This figure was comprised of $58 million related to the company’s investment in Up Fintech Holding Limited (Tiger Brokers), $34 million related to currency diversification strategy and $6 million remeasurement of its Tax Receivable Agreement liability.
During the fourth quarter, reported pretax profit margin reached 71% for the current quarter and 70% as adjusted, compared to last year’s 62% and 66% as adjusted. Total equity for the period came in at $11.6 billion.
The reported diluted earnings for the quarter stood at $1.31 with the adjusted figure at $1.30, a yearly rise of 95.5% and 56.6%, respectively.
Customers
Interactive Brokers reported 25% increase in number of customer accounts to 2.09 million during the third quarter. However, Daily Average Revenue Trades (DARTs) fell 22% to 1.89 million and cleared DARTs came in at 1.69 million, also seeing a decrease of 22%.
Customer equity went down by 18% to $306.7 billion, while customer credits rose 9% to $95.2 billion. The customer margin loans for the period fell by 29% to $38.9 billion.
