S&P revises outlook on IBG LLC and Interactive Brokers LLC

Maria Nikolova

S&P revised the outlook to stable from positive due to uncertainty over the length and severity of COVID-19-related market and economic stress which raises the potential for losses.

S&P Global Ratings on Monday revised the outlook on IBG LLC and its subsidiary Interactive Brokers LLC to stable from positive. At the same time, it affirmed its ‘BBB’ issuer credit rating on IBG LLC and its ‘BBB+’ long-term and ‘A-2’ short-term issuer credit ratings on Interactive Brokers LLC.

S&P explains that it revised the outlook to stable from positive to reflect that although it expects IBG to remain highly profitable and capitalized, uncertainty over the length and severity of COVID-19-related market and economic stress raises the potential for losses, to the extent that S&P is unlikely to raise its ratings on IBG until the COVID-19 threat has receded.

S&P notes that while the firm’s brokerage has been the leader in daily average revenue trades, it is substantially smaller than its main retail peers in terms of total client assets, with $179.8 billion as of April 30, 2020.

The stable outlook reflects our expectation that IBG will maintain very strong capitalization and supportive profitability and liquidity in the face of S&P’s latest COVID-19-related market and economic stress assumptions. S&P expects the firm will maintain its RAC ratio well above 25%, gross stable funding ratio in excess of 110%, and a liquidity coverage metric above 90%.

Let’s recall that Interactive Brokers Group posted diluted earnings per share of $0.60 for the first quarter of 2020, down from $0.64 registered in the corresponding period in 2019, and adjusted diluted earnings per share of $0.69 for this quarter compared to $0.55 for the same period in 2019.

Net revenues for the first quarter of 2020 amounted to $532 million and income before income taxes was $308 million this quarter, compared to net revenues of $558 million and income before income taxes of $339 million for the same period in 2019.

Commission revenue increased $96 million, or 55%, from the year-ago quarter on the back of higher customer trading volume in an environment of high market volatility resulting from the COVID-19 pandemic.

Total equity was $8.1 billion.

Read this next

Digital Assets

DED Trends on Twitter After Memecoin Snapshot Announcement

Polkadot-backed community coin #DED, made it to the trending charts on X, demonstrating community’s engagement and interest behind the memecoin. 

Digital Assets

BlockDAG Presale Nears $10 Million Amid Toncoin’s Momentum, Green Bitcoin’s Presale, and the Rise of Other Top Cryptos

This article will examine three top trending topics: Toncoin’s potential, Green Bitcoin’s innovative presale, and BlockDAG’s sustainable mining approach. These cryptocurrencies take centre stage for their uniqueness and innovation.

Digital Assets

Coinbase scores minor victory vs SEC, but lawsuit to proceed

A federal judge in Manhattan, U.S. District Judge Katherine Polk Failla, ruled on Wednesday that the U.S. Securities and Exchange Commission’s (SEC) lawsuit against Coinbase can largely proceed.

Web3

COTI Teams Up with Civic for Enhanced Digital Identity Control

СOTI and Civic are teaming up to enhance digital identity security in Web3, aiming to provide users with more control over their digital selves through innovative technology.

Digital Assets

BlockDAG Takes on Chainlink (LINK) Crypto, and RON With DeFi Card and 5000x Profit Potential

Explore BlockDAG’s innovative DeFi card, which transforms cryptocurrency into spendable cash, alongside Chainlink (LINK) crypto and Ronin’s advancements.

Digital Assets

Court finally decides on Sam Bankman-Fried sentence, experts predict 20 years

Sam Bankman-Fried, the former CEO of the now-defunct cryptocurrency exchange FTX, is set to face sentencing on Thursday in a pivotal moment that could see the entrepreneur beginning a lengthy period in federal prison.

Crypto Insider

DeFi Winter Thaws: A Look at the Emerging Landscape

The past year has seen a significant shift in the Decentralized Finance (DeFi) market, transitioning from a period of decline (“DeFi winter”) to a potential season of growth.

Digital Assets

KuCoin announces $10 million airdrop as users withdraw $1.2 billion

KuCoin – the fourth-largest crypto exchange in the world by trading volume – today announced plans to distribute $10 million worth of Bitcoin and its native KCS token via an airdrop event.

Reviews

Transform Your Financial Future with ARKMining’s Innovative Blockchain Solutions

Learn About Daily Passive Income Through Cryptocurrency with ARKMining: A Guide to Secure Practices.

<