Interactive Brokers Group Announces 4Q2023 Results

Rhea-AI Summary

Interactive Brokers Group, Inc. (IBKR) reported a GAAP diluted EPS of $1.48 and adjusted EPS of $1.52, with net revenues of $1,139 million and adjusted net revenues of $1,149 million for the quarter ended December 31, 2023. The company's financial highlights include an increase in commission revenue by 5%, a 29% increase in net interest income, and a 23% increase in customer accounts to 2.56 million. The effects of the currency diversification strategy increased comprehensive earnings by $139 million. The company declared a quarterly cash dividend of $0.10 per share, payable on March 14, 2024. The PR also announced a conference call with investors on January 16, 2024, to discuss its quarterly results.

Insights

Financial Analyst

Analyzing the financial results of Interactive Brokers Group, Inc., the reported growth in GAAP net revenues from the year-ago quarter is noteworthy, indicating a robust increase from $976 million to $1,139 million. This substantial growth is reflective of the company's operational efficiency and ability to capitalize on market conditions, such as increased customer trading volumes in specific areas like options and futures.

Furthermore, the pretax profit margin remaining stable at 72% is indicative of effective cost management despite the increase in execution, clearing and distribution fees expenses, which rose in tandem with higher trading volumes. The dividend declaration provides a tangible return to shareholders, reinforcing the company's financial stability and commitment to shareholder value.

Market Research Analyst

The reported increase in customer accounts by 23% and customer equity by 39% is a clear signal of Interactive Brokers Group's growing market presence. The rise in customer margin loans by 14% to $44.4 billion, alongside a 10% increase in customer credits, suggests a heightened level of trading activity and confidence among its customer base, which could be attributed to the company's platform and service offerings.

Additionally, the mixed customer trading volume, with a decrease in stock share volume, may reflect shifting investor preferences or market trends that could influence future revenue streams. Companies in the brokerage sector need to continuously adapt to these trends to maintain competitiveness.

Currency Strategist

The currency diversification strategy employed by Interactive Brokers Group, which resulted in a net increase to comprehensive earnings by $139 million, demonstrates the company's proactive approach to managing foreign exchange risk. The strategy's contribution to Other Comprehensive Income, with a gain of $148 million, partially offset by a loss of $9 million in Other Income, underscores the volatility and complexity inherent in currency management.

Understanding the impact of such strategies is crucial for stakeholders as it can significantly affect the company's financial health and risk profile. The use of GLOBALs as a benchmark for net worth is an innovative approach to safeguarding against currency fluctuations and could be a point of interest for investors with an eye on risk mitigation.

GAAP DILUTED EPS OF $1.48, ADJUSTED¹ EPS OF $1.52

GAAP NET REVENUES OF $1,139 MILLION, ADJUSTED NET REVENUES OF $1,149 MILLION

GREENWICH, Conn.--(BUSINESS WIRE)-- Interactive Brokers Group, Inc. (Nasdaq: IBKR), an automated global electronic broker, announced results for the quarter ended December 31, 2023.

Reported diluted earnings per share were $1.48 for the current quarter and $1.52 as adjusted. For the year-ago quarter, reported diluted earnings per share were $1.31 and $1.30 as adjusted.

Reported net revenues were $1,139 million for the current quarter and $1,149 million as adjusted. For the year-ago quarter, reported net revenues were $976 million and $958 million as adjusted.

Reported income before income taxes was $816 million for the current quarter and $831 million as adjusted. For the year-ago quarter, reported income before income taxes was $689 million and $671 million as adjusted.

Financial Highlights
(All comparisons are to the year-ago quarter.)

• Commission revenue increased 5% to $348 million. Customer trading volume was mixed across product types with options and futures contract volumes up 21% and 4%, respectively, while stock share volume was down 22%.
• Net interest income increased 29% to $730 million on higher benchmark interest rates, customer margin loans and customer credit balances.
• Other income decreased $31 million to $6 million. This decrease was mainly comprised of $20 million related to our currency diversification strategy and $8 million related to our investment in Tiger Brokers.
• Execution, clearing and distribution fees expenses increased 11% to $100 million, driven by higher customer trading volume in options and futures.
• Pretax profit margin for the current quarter was 72% both as reported and as adjusted. For the year-ago quarter, reported pretax margin was 71% and 70% as adjusted.
• Total equity of $14.1 billion.

The Interactive Brokers Group, Inc. Board of Directors declared a quarterly cash dividend of $0.10 per share. This dividend is payable on March 14, 2024, to shareholders of record as of March 1, 2024.

Business Highlights
(All comparisons are to the year-ago quarter.)

• Customer accounts increased 23% to 2.56 million.
• Customer equity increased 39% to $426.0 billion.
• Total DARTs² increased 2% to 1.93 million.
• Cleared DARTs increased 2% to 1.73 million.
• Customer credits increased 10% to $104.5 billion.
• Customer margin loans increased 14% to $44.4 billion.

Effects of Foreign Currency Diversification

In connection with our currency diversification strategy, we base our net worth in GLOBALs, a basket of 10 major currencies in which we hold our equity. In this quarter, our currency diversification strategy increased our comprehensive earnings by $139 million, as the U.S. dollar value of the GLOBAL increased by approximately 1.05%. The effects of the currency diversification strategy are reported as components of (1) Other Income (loss of $9 million) and (2) Other Comprehensive Income (gain of $148 million).

Conference Call Information:

Interactive Brokers Group, Inc. will hold a conference call with investors today, January 16, 2024, at 4:30 p.m. ET to discuss its quarterly results. Members of the public who would like to listen to the conference call should register at https://register.vevent.com/register/BI9b8b0781a22347468c0936eccc35776d to obtain the dial-in details. The number should be dialed approximately ten minutes prior to the start of the conference call. The conference call will also be accessible simultaneously, and through replays, as an audio webcast through the Investor Relations section of the Interactive Brokers web site, www.interactivebrokers.com/ir.

About Interactive Brokers Group, Inc.:

Interactive Brokers Group affiliates provide automated trade execution and custody of securities, commodities and foreign exchange around the clock on over 150 markets in numerous countries and currencies, from a single unified platform to clients worldwide. We serve individual investors, hedge funds, proprietary trading groups, financial advisors and introducing brokers. Our four decades of focus on technology and automation has enabled us to equip our clients with a uniquely sophisticated platform to manage their investment portfolios. We strive to provide our clients with advantageous execution prices and trading, risk and portfolio management tools, research facilities and investment products, all at low or no cost, positioning them to achieve superior returns on investments. For the sixth consecutive year, Barron’s ranked Interactive Brokers #1 with 5 out of 5 stars in its June 9, 2023, Best Online Brokers Review.

Cautionary Note Regarding Forward-Looking Statements:

The foregoing information contains certain forward-looking statements that reflect the Company’s current views with respect to certain current and future events and financial performance. These forward-looking statements are and will be, as the case may be, subject to many risks, uncertainties and factors relating to the Company’s operations and business environment which may cause the Company’s actual results to be materially different from any future results, expressed or implied, in these forward-looking statements. Any forward-looking statements in this release are based upon information available to the Company on the date of this release. The Company does not undertake to publicly update or revise its forward-looking statements even if experience or future changes make it clear that any statements expressed or implied therein will not be realized. Additional information on risk factors that could potentially affect the Company’s financial results may be found in the Company’s filings with the Securities and Exchange Commission.

___________________________________
¹ See the reconciliation of non-GAAP financial measures starting on page 9.
² Daily average revenue trades (DARTs) are based on customer orders.

INTERACTIVE BROKERS GROUP, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
				Three Months						Twelve Months
				Ended December 31,						Ended December 31,
				2023			2022			2023			2022
				(in millions, except share and per share data)
Revenues:
	Commissions			$	348		$	331		$	1,360		$	1,322
	Other fees and services				55			43			197			184
	Other income (loss)				6			37			(11)			(107)
		Total non-interest income			409			411			1,546			1,399
	Interest income				1,695			1,111			6,230			2,686
	Interest expense				(965)			(546)			(3,436)			(1,018)
		Total net interest income			730			565			2,794			1,668
		Total net revenues			1,139			976			4,340			3,067
Non-interest expenses:
	Execution, clearing and distribution fees				100			90			386			324
	Employee compensation and benefits				136			119			527			454
	Occupancy, depreciation and amortization				25			22			99			90
	Communications				12			8			41			33
	General and administrative				45			48			211			165
	Customer bad debt				5			-			7			3
		Total non-interest expenses			323			287			1,271			1,069
Income before income taxes					816			689			3,069			1,998
Income tax expense					77			56			257			156
Net income					739			633			2,812			1,842
Net income attributable to noncontrolling interests					579			497			2,212			1,462
Net income available for common stockholders				$	160		$	136		$	600		$	380
Earnings per share:
	Basic			$	1.49		$	1.32		$	5.72		$	3.78
	Diluted			$	1.48		$	1.31		$	5.67		$	3.75
Weighted average common shares outstanding:
	Basic				107,021,836			102,875,250			104,965,050			100,460,016
	Diluted				107,811,190			103,656,668			105,846,877			101,299,609

INTERACTIVE BROKERS GROUP, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED)
				Three Months						Twelve Months
				Ended December 31,						Ended December 31,
				2023			2022			2023			2022
					(in millions, except share and per share data)
Comprehensive income:
	Net income available for common stockholders			$	160		$	136		$	600		$	380
	Other comprehensive income:
		Cumulative translation adjustment, before income taxes			37			38			30			(26)
		Income taxes related to items of other comprehensive income			-			-			-			-
	Other comprehensive income (loss), net of tax				37			38			30			(26)
Comprehensive income available for common stockholders				$	197		$	174		$	630		$	354
Comprehensive earnings per share:
	Basic			$	1.84		$	1.70		$	6.00		$	3.53
	Diluted			$	1.83		$	1.68		$	5.95		$	3.50
Weighted average common shares outstanding:
	Basic				107,021,836			102,875,250			104,965,050			100,460,016
	Diluted				107,811,190			103,656,668			105,846,877			101,299,609
Comprehensive income attributable to noncontrolling interests:
	Net income attributable to noncontrolling interests			$	579		$	497		$	2,212		$	1,462
	Other comprehensive income - cumulative translation adjustment				111			120			92			(85)
Comprehensive income attributable to noncontrolling interests				$	690		$	617		$	2,304		$	1,377

INTERACTIVE BROKERS GROUP, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (UNAUDITED)
			December 31, 2023			December 31, 2022
			(in millions)
Assets
Cash and cash equivalents			$	3,753		$	3,436
Cash - segregated for regulatory purposes				28,840			25,167
Securities - segregated for regulatory purposes				35,386			31,781
Securities borrowed				5,835			4,749
Securities purchased under agreements to resell				5,504			6,029
Financial instruments owned, at fair value				1,488			485
Receivables from customers, net of allowance for credit losses				44,472			38,760
Receivables from brokers, dealers and clearing organizations				1,643			3,469
Other assets				1,502			1,267
	Total assets		$	128,423		$	115,143
Liabilities and equity
Liabilities
Short-term borrowings			$	17		$	18
Securities loaned				11,347			8,940
Financial instruments sold but not yet purchased, at fair value				193			146
Other payables:
	Customers			101,012			93,195
	Brokers, dealers and clearing organizations			590			291
	Other payables			1,197			938
				102,799			94,424
	Total liabilities			114,356			103,528
Equity
Stockholders' equity				3,584			2,848
Noncontrolling interests				10,483			8,767
	Total equity			14,067			11,615
	Total liabilities and equity		$	128,423		$	115,143

		December 31, 2023				December 31, 2022
Ownership of IBG LLC Membership Interests		Interests		%		Interests			%
IBG, Inc.		107,049,483		25.4%		102,927,703			24.5%
Noncontrolling interests (IBG Holdings LLC)		313,976,354		74.6%		316,609,102			75.5%
Total IBG LLC membership interests		421,025,837		100.0%		419,536,805			100.0%

INTERACTIVE BROKERS GROUP, INC. AND SUBSIDIARIES OPERATING DATA
TRADE VOLUMES:
(in 000's, except %)
		Cleared					Non-Cleared															Avg. Trades
		Customer		%			Customer		%			Principal		%			Total		%			per U.S.
Period		Trades		Change			Trades		Change			Trades		Change			Trades		Change			Trading Day
2021		871,319					78,276					32,621					982,216					3,905
2022		735,619		(16	%)		70,049		(11	%)		32,863		1	%		838,531		(15	%)		3,347
2023		670,263		(9	%)		58,580		(16	%)		36,725		12	%		765,568		(9	%)		3,075
4Q2022		165,769					14,923					7,358					188,050					3,009
4Q2023		164,975		(0	%)		14,922		(0	%)		10,047		37	%		189,944		1	%		3,039
3Q2023		163,318					14,218					10,109					187,645					3,002
4Q2023		164,975		1	%		14,922		5	%		10,047		(1	%)		189,944		1	%		3,039

CONTRACT AND SHARE VOLUMES:
(in 000's, except %)
TOTAL		Options		%			Futures1		%			Stocks		%
Period		(contracts)		Change			(contracts)		Change			(shares)		Change
2021		887,849					154,866					771,273,709
2022		908,415		2	%		207,138		34	%		330,035,586		(57	%)
2023		1,020,736		12	%		209,034		1	%		252,742,847		(23	%)
4Q2022		229,441					51,519					75,713,964
4Q2023		279,945		22	%		53,883		5	%		59,046,908		(22	%)
3Q2023		256,481					50,309					59,453,190
4Q2023		279,945		9	%		53,883		7	%		59,046,908		(1	%)
ALL CUSTOMERS		Options		%			Futures1		%			Stocks		%
Period		(contracts)		Change			(contracts)		Change			(shares)		Change
2021		852,169					152,787					766,211,726
2022		873,914		3	%		203,933		33	%		325,368,714		(58	%)
2023		981,172		12	%		206,073		1	%		248,588,960		(24	%)
4Q2022		221,855					50,773					74,353,901
4Q2023		269,082		21	%		52,996		4	%		58,112,082		(22	%)
3Q2023		245,169					49,459					58,202,858
4Q2023		269,082		10	%		52,996		7	%		58,112,082		(0	%)
CLEARED CUSTOMERS		Options		%			Futures1		%			Stocks		%
Period		(contracts)		Change			(contracts)		Change			(shares)		Change
2021		773,284					151,715					752,720,070
2022		781,373		1	%		202,145		33	%		314,462,672		(58	%)
2023		834,866		7	%		204,691		1	%		240,270,617		(24	%)
4Q2022		194,962					50,326					71,924,864
4Q2023		222,082		14	%		52,883		5	%		56,240,615		(22	%)
3Q2023		209,097					49,345					56,323,672
4Q2023		222,082		6	%		52,883		7	%		56,240,615		(0	%)
1 Includes options on futures

INTERACTIVE BROKERS GROUP, INC. AND SUBSIDIARIES OPERATING DATA, CONTINUED
PRINCIPAL TRANSACTIONS		Options		%			Futures1		%			Stocks		%
Period		(contracts)		Change			(contracts)		Change			(shares)		Change
2021		35,680					2,079					5,061,983
2022		34,501		(3	%)		3,205		54	%		4,666,872		(8	%)
2023		39,564		15	%		2,961		(8	%)		4,153,887		(11	%)
4Q2022		7,586					746					1,360,063
4Q2023		10,863		43	%		887		19	%		934,826		(31	%)
3Q2023		11,312					850					1,250,332
4Q2023		10,863		(4	%)		887		4	%		934,826		(25	%)
1 Includes options on futures

CUSTOMER STATISTICS
Year over Year			4Q2023			4Q2022		% Change
Total Accounts (in thousands)			2,562			2,091		23	%
Customer Equity (in billions)1		$	426.0		$	306.7		39	%
Cleared DARTs (in thousands)			1,727			1,689		2	%
Total Customer DARTs (in thousands)			1,934			1,889		2	%
Cleared Customers
Commission per Cleared Commissionable Order2		$	3.19		$	3.15		1	%
Cleared Avg. DARTs per Account (Annualized)			172			206		(17	%)
Consecutive Quarters			4Q2023			3Q2023		% Change
Total Accounts (in thousands)			2,562			2,431		5	%
Customer Equity (in billions)1		$	426.0		$	369.8		15	%
Cleared DARTs (in thousands)			1,727			1,709		1	%
Total Customer DARTs (in thousands)			1,934			1,907		1	%
Cleared Customers
Commission per Cleared Commissionable Order2		$	3.19		$	3.11		3	%
Cleared Avg. DARTs per Account (Annualized)			172			180		(4	%)
(1) Excludes non-Customers.
(2) Commissionable Order - a customer order that generates commissions.

INTERACTIVE BROKERS GROUP, INC. AND SUBSIDIARIES NET INTEREST MARGIN (UNAUDITED)
				Three Months								Twelve Months
				Ended December 31,								Ended December 31,
				2023				2022				2023				2022
				(in millions)
Average interest-earning assets
	Segregated cash and securities			$	59,482			$	57,327			$	59,582			$	51,644
	Customer margin loans				42,769				39,277				41,229				43,402
	Securities borrowed				5,185				4,368				5,315				3,961
	Other interest-earning assets				10,534				9,203				10,114				9,000
	FDIC sweeps1				3,554				2,347				3,003				2,229
				$	121,524			$	112,522			$	119,242			$	110,235
Average interest-bearing liabilities
	Customer credit balances			$	96,598			$	93,401			$	96,081			$	90,172
	Securities loaned				9,922				9,071				9,518				10,095
	Other interest-bearing liabilities				1				1				1				4
				$	106,521			$	102,473			$	105,599			$	100,271
Net interest income
	Segregated cash and securities, net			$	760			$	454			$	2,791			$	742
	Customer margin loans2				631				420				2,278				1,083
	Securities borrowed and loaned, net				43				73				276				413
	Customer credit balances, net2				(866	)			(487	)			(3,125	)			(763	)
	Other net interest income1/3				171				112				600				207
		Net interest income3		$	739			$	572			$	2,820			$	1,682
Net interest margin ("NIM")					2.41	%			2.02	%			2.36	%			1.53	%
Annualized yields
	Segregated cash and securities				5.07	%			3.14	%			4.68	%			1.44	%
	Customer margin loans				5.85	%			4.24	%			5.53	%			2.50	%
	Customer credit balances				3.56	%			2.07	%			3.25	%			0.85	%

______________________________________________________
1		Represents the average amount of customer cash swept into FDIC-insured banks as part of our Insured Bank Deposit Sweep Program. This item is not recorded in the Company's consolidated statements of financial condition. Income derived from program deposits is reported in other net interest income in the table above.
2		Interest income and interest expense on customer margin loans and customer credit balances, respectively, are calculated on daily cash balances within each customer’s account on a net basis, which may result in an offset of balances across multiple account segments (e.g., between securities and commodities segments).
3		Includes income from financial instruments that has the same characteristics as interest, but is reported in other fees and services and other income in the Company’s consolidated statements of comprehensive income. For the three and twelve months ended December 31, 2023 and 2022, $5 million, $19 million, $3 million, and $10 million were reported in other fees and services, respectively. For the three and twelve months ended December 31, 2023 and 2022, $4 million, $7 million, $3 million, and $4 million were reported in other income, respectively.

INTERACTIVE BROKERS GROUP, INC. AND SUBSIDIARIES RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (UNAUDITED)
			Three Months								Twelve Months
			Ended December 31,								Ended December 31,
			2023				2022				2023				2022
			(in millions)
Adjusted net revenues1
Net revenues - GAAP			$	1,139			$	976			$	4,340			$	3,067
Non-GAAP adjustments
	Currency diversification strategy, net			9				(11	)			80				100
	Mark-to-market on investments2			8				(1	)			(46	)			52
	Remeasurement of TRA liability3			(7	)			(6	)			(7	)			(6	)
Total non-GAAP adjustments				10				(18	)			27				146
Adjusted net revenues			$	1,149			$	958			$	4,367			$	3,213
Adjusted income before income taxes1
Income before income taxes - GAAP			$	816			$	689			$	3,069			$	1,998
Non-GAAP adjustments
	Currency diversification strategy, net			9				(11	)			80				100
	Mark-to-market on investments2			8				(1	)			(46	)			52
	Remeasurement of TRA liability3			(7	)			(6	)			(7	)			(6	)
	Bad debt expense5			5				-				5				0
Total non-GAAP adjustments				15				(18	)			32				146
Adjusted income before income taxes			$	831			$	671			$	3,101			$	2,144
Adjusted pre-tax profit margin				72	%			70	%			71	%			67	%

			Three Months								Twelve Months
			Ended December 31,								Ended December 31,
			2023				2022				2023				2022
			(in millions)
Adjusted net income available for common stockholders1
Net income available for common stockholders - GAAP			$	160			$	136			$	600			$	380
Non-GAAP adjustments
	Currency diversification strategy, net			2				(3	)			20				24
	Mark-to-market on investments2			2				(0	)			(12	)			13
	Remeasurement of TRA liability3			(7	)			(6	)			(7	)			(6	)
	Bad debt expense4			1				-				1				-
	Income tax effect of above adjustments5			(1	)			1				(2	)			(7	)
	Remeasurement of deferred income taxes6			7				7				7				7
Total non-GAAP adjustments				5				(1	)			8				30
Adjusted net income available for common stockholders			$	164			$	135			$	608			$	410
Note: Amounts may not add due to rounding.
			Three Months								Twelve Months
			Ended December 31,								Ended December 31,
			2023				2022				2023				2022
			(in dollars)
Adjusted diluted EPS1
Diluted EPS - GAAP			$	1.48			$	1.31			$	5.67			$	3.75
Non-GAAP adjustments
	Currency diversification strategy, net			0.02				(0.03	)			0.19				0.24
	Mark-to-market on investments2			0.02				(0.00	)			(0.11	)			0.12
	Remeasurement of TRA liability3			(0.07	)			(0.06	)			(0.07	)			(0.06	)
	Bad debt expense4			0.01				0.00				0.01				0.00
	Income tax effect of above adjustments5			(0.01	)			0.01				(0.01	)			(0.07	)
	Remeasurement of deferred income taxes6			0.07				0.07				0.07				0.07
Total non-GAAP adjustments				0.04				(0.01	)			0.08				0.30
Adjusted diluted EPS			$	1.52			$	1.30			$	5.75			$	4.05
Diluted weighted average common shares outstanding				107,811,190				103,656,668				105,846,877				101,299,609
Note: Amounts may not add due to rounding.

Note: The term “GAAP” in the following explanation refers to generally accepted accounting principles in the United States.

¹ Adjusted net revenues, adjusted income before income taxes, adjusted net income available for common stockholders and adjusted diluted earnings per share (“EPS”) are non-GAAP financial measures.

• We define adjusted net revenues as net revenues adjusted to remove the effect of our currency diversification strategy, our net mark-to-market gains (losses) on investments², and the remeasurement of our Tax Receivable Agreement (“TRA”) liability³.
• We define adjusted income before income taxes as income before income taxes adjusted to remove the effect of our currency diversification strategy, our net mark-to-market gains (losses) on investments, the remeasurement of our TRA liability, and unusual bad debt expense⁴.
• We define adjusted net income available to common stockholders as net income available for common stockholders adjusted to remove the after-tax effects attributable to IBG, Inc. of our currency diversification strategy our net mark-to-market gains (losses) on investments, the remeasurement of our TRA liability, unusual bad debt expense, and the remeasurement of certain deferred tax assets⁶.
• We define adjusted diluted EPS as adjusted net income available for common stockholders divided by the diluted weighted average number of shares outstanding for the period.

Management believes these non-GAAP items are important measures of our financial performance because they exclude certain items that may not be indicative of our core operating results and business outlook and may be useful to investors and analysts in evaluating the operating performance of the business and facilitating a meaningful comparison of our results in the current period to those in prior and future periods. Our currency diversification strategy and our mark-to-market on investments are excluded because management does not believe they are indicative of our underlying core business performance. Adjusted net revenues, adjusted income before income taxes, adjusted net income available to common stockholders and adjusted diluted EPS should be considered in addition to, rather than as a substitute for, GAAP net revenues, income before income taxes, net income attributable to common stockholders and diluted EPS.

² Mark-to-market on investments represents the net mark-to-market gains (losses) on investments in equity securities that do not qualify for equity method accounting which are measured at fair value, on our U.S. government and municipal securities portfolio, which are typically held to maturity, and on certain other investments, including equity securities taken over by the Company from customers related to losses on margin loans.

³ Remeasurement of our tax receivable agreement (“TRA”) liability represents the change in the amount payable to IBG Holdings LLC under the TRA, primarily due to changes in the Company’s effective tax rates. This is related to the remeasurement of the deferred tax assets described below. For further information refer to Note 4 – Equity and Earnings per Share under Part II, Item 8 – Financial Statements and Supplementary Data of the Company’s Annual Report on Form 10 K filed with the Securities Exchange Commission (“SEC”) on February 24, 2023.

⁴Unusual bad debt expense consists of a credit loss on a loan not related to margin lending.

⁵ The income tax effect is estimated using the statutory income tax rates applicable to the Company.

⁶ Remeasurement of certain deferred tax assets represents the change in the unamortized balance of deferred tax assets related to the step-up in basis arising from the acquisition of interests in IBG LLC, primarily due to changes in the Company’s effective tax rates. For further information refer to Note 4 – Equity and Earnings per Share under Part II, Item 8 – Financial Statements and Supplementary Data of the Company’s Annual Report on Form 10 K filed with the Securities Exchange Commission (“SEC”) on February 24, 2023.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240116799662/en/

For Interactive Brokers Group, Inc.

Investors: Nancy Stuebe, investor-relations@ibkr.com

or

Media: Rob Garfield, media@ibkr.com

Source: Interactive Brokers Group, Inc.

FAQ

What is the GAAP diluted EPS reported by IBKR for the quarter ended December 31, 2023?

Interactive Brokers Group, Inc. (IBKR) reported a GAAP diluted EPS of $1.48 for the quarter ended December 31, 2023.

What was the adjusted EPS reported by IBKR for the quarter ended December 31, 2023?

The adjusted EPS reported by IBKR for the quarter ended December 31, 2023, was $1.52.

What were the net revenues reported by IBKR for the quarter ended December 31, 2023?

The net revenues reported by IBKR for the quarter ended December 31, 2023, were $1,139 million.

What was the effect of the currency diversification strategy on IBKR's comprehensive earnings?

The currency diversification strategy increased IBKR's comprehensive earnings by $139 million.

When is the quarterly cash dividend declared by IBKR payable?

The quarterly cash dividend declared by IBKR is payable on March 14, 2024.

What is the date of the conference call with investors announced by IBKR?

IBKR will hold a conference call with investors on January 16, 2024, to discuss its quarterly results.