Interactive Brokers’ Q3 Revenues Largely Unchanged, Accounts Rise YoY

Key metrics were largely mixed in Q3, with account growth offset by decreases in incomes and revenues.

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.

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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 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.

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