Interactive Brokers’ Q3 Revenues Largely Unchanged, Accounts Rise YoY

Interactive Brokers (NASDAQ:IBKR) has reported its Q3 2016 financial metrics ending for the period ending September 30, 2016 – the latest figures show a somewhat mitigated profit margin relative to the year prior, which was tempered by a growth in accounts, according to an Interactive Brokers financial release.

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For Q3 2016, Interactive Brokers yielded a net revenue of $345 million – this correlated to $359 million in Q3 2015, or -3.9% YoY. In addition, the broker’s income before taxes was $183 million for the quarter, down from $202 million over the same period in 2015, reflective of a loss of -9.4% YoY. These figures were influenced by a highly active summer in 2015 in conjunction with market tranquility that enveloped financial markets this past summer.

The group also saw its reported diluted earnings per share increase on a comprehensive basis to $0.30 for Q3 2016, up from just $0.23 from Q3 2015 or 30.4% YoY. In particular, these results were dictated in part by an strong performance in net interest income, which swelled by 28.0% YoY in Q3 2016, relative to the year prior.

Interactive Brokers also reported a decrease in its electronic brokerage segment’s income, which fell to $162.0 million in Q3 2016, down -12.0% YoY from Q3 2015. Moreover, net revenues also saw a marginal decline to $288.0 million in Q3 2016, retreating -4.0% YoY – this figure was shackled by lower commissions and Execution Execution Execution is the process during which a client submits an order to the brokerage, which consequently executes it resulting in an open position in a given asset. The execution of the order occurs only when it is filled. There is typically a time delay between the placement of the order and the execution which is called latency.In the retail FX space, reliable brokers always strive to deliver best execution to their clients in order to maintain a solid business relationship with them. This is a co Execution is the process during which a client submits an order to the brokerage, which consequently executes it resulting in an open position in a given asset. The execution of the order occurs only when it is filled. There is typically a time delay between the placement of the order and the execution which is called latency.In the retail FX space, reliable brokers always strive to deliver best execution to their clients in order to maintain a solid business relationship with them. This is a co Read this Term fees.

As such, commission and execution fees experienced a -15.0% decline in Q3 2016, compared with the same period in the year prior. Finally, lower customer volumes in options, futures, and stocks also registered a decline of -24.0%, -17.0%, and -5.0%, respectively, from the same period last year.

Lastly, Interactive Brokers’ customer accounts notched a growth of 15.0% YoY in Q3 2016 compared with Q3 2015. Over the same period the broker reported a climb in customer equity by a margin of 33% YoY $82.7 billion in Q3 2016.