Interactive Brokers reports record revenues for Q4 2022

abdelaziz Fathi

Interactive Brokers reported largest-ever quarterly profit, buoyed by a favorable interest rate environment and an increasing user base.

The discount broker posted strong fourth-quarter earnings led by a recovery in interest income and its investment in Tiger Brokers. However, IBKR’s commission revenue was muted due to higher operating expenses and lower customer stock trading volume.

Ranked as the largest US electronic broker by some measures, Interactive Brokers’ fourth-quarter adjusted revenues rose 40 percent year-over-year, to $958 million compared to $683 million in Q4 2021.

On an adjusted basis, income before tax totaled $671 million, up 48 percent year-over-year from $453 million in the previous year. Diluted earnings per share came in at $1.30 for this quarter compared to $0.83 in Q4 2021.

Despite headwinds from a push to no-fee trading, Interactive Brokers’ commission revenue increased 3 percent from the year-ago quarter to $331 million. The growth was attributed to customer’s futures trading volume and higher options commission per contract. However, the figure was tempered partially by lower stock volume.

The upbeat results for the quarter were also driven by strong interest revenue, which jumped to $565 million, or 92 percent on a yearly basis. This was due to the aggressive interest rate hikes by the Federal Reserve and customer credit balances, partially offset by a decline in margin lending balances.

IBKR reports fewer monthly trades

Aside from its core electronic-brokerage business, the IBKR earnings for the fourth quarter included a mark-to-market gain of $58 million from its 7.7 percent stake in Tiger Brokers.

Under the other income section, Interactive Brokers booked $34 million in gains related to currency diversification strategy, and $6 million related to the remeasurement of its tax liability. Interactive Brokers holds its cash reserves in different currencies to reflect its global operations, which include significant overseas segments.

In terms of its operational metrics, Interactive Brokers said its trading volumes took a step back in the fourth quarter, an indication that investor confidence is still fairly mixed over the past few months.

During December 2022, the number of DARTs was reported at 1.751 million transactions, down from 1.96 million transactions in the month of November. Over a year-on-year basis, Interactive Brokers saw a larger drop in its DARTs with December’s figure down by 21 percent relative to 2.23 million reported in December 2021.

Elsewhere, the discount brokerage has won more than 25,400 new accounts. December’s active accounts increased to 2.09 million, or 1 percent higher from November and 25 percent above the previous year’s figure of 1.67 million ‎accounts.

Read this next

Fundamental Analysis

Global FX Market Summary: USD, ECB, Gold, Oil  April 12 ,2024

A strong US economy, cautious Fed policy compared to Europe, and safe-haven demand are all fueling the surge of the US Dollar.

Digital Assets

Thai crypto exchange Bitkub eyes $3 billion valuation

Thailand’s largest cryptocurrency exchange Bitkub is gearing up for a public offering next year with a potential valuation of up to $3 billion, according to Bitkub Capital Group CEO Jirayut Srupsrisopa.

Technical Analysis

GBPUSD Technical Analysis Report 12 April, 2024

GBPUSD currency pair can be expected to all further toward the next support level 1.2400, target price for the completion of the active minor impulse wave.

Market News

Navigating Currency Trends: Extensive Analysis on EUR/USD Signal

Traders Union provides comprehensive daily analysis and signals for EUR/USD.

Retail FX

Axi extends sponsorship of Brazilian Esporte Clube Bahia

Forex and CFD broker Axi has just announced they’re extending their sponsorship with Brazilian Serie A team Esporte Clube Bahia into the 2024 season.

Digital Assets

Binance-backed Gopax narrows losses amid strong crypto trading

Binance-backed cryptocurrency exchange Gopax reported lower net losses for 2023, according to its parent company Streami’s year-end financial report.

Chainwire

99Bitcoins Launches Learn-To-Earn Presale and Raises $150K On First Day

99Bitcoins, established in 2013, has recently begun its token presale in an effort to harness the current upward trend in Bitcoin’s value. The 99BTC team, seizing this opportunity, offers its learn-to-earn platform, a longstanding resource in cryptocurrency education.

Reviews

Brokeree Solutions Review

Brokeree Solutions is an international provider of innovative technological solutions for multi-asset brokers worldwide. The company specializes in high-grade solutions development, including flagship Social Trading, PAMM, Prop Pulse, and Liquidity Bridge. With 10 years of industry expertise and an extensive product portfolio, Brokeree Solutions offers technologies covering almost any broker’s needs.

Reviews

Zota: revolutionizing global payments in emerging markets

Zota is a global payment service provider that empowers businesses to transcend borders and tap into emerging markets with ease.

<