Shortly after the close of U.S. trading session, Interactive Brokers LLC (NASDAQ:IBKR), a global electronic multi-asset broker and market-maker listed on Nasdaq, has disclosed its financial results for Q1 2017, revealing that its metrics failed to live up to the strong performance of the equivalent quarter a year ago.
During the reported quarter, the US brokerage has reported that its net revenues for Q1 2017 amounted to $374 million, which was lower by -23.5 percent compared with $489 million in the same period last year. In addition, the amount of income before income taxes totalled $213 million, down -36.8 percent year-over-year from $337 million that had been announced in Q1 2016.
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The decrease in net revenues was primarily due to lower trading gains, which decreased 96 percent from the year-ago quarter, as well as commissions and execution fees but the figure was partially offset by higher net interest income which increased $15 million, or 12 percent.
Delving further into financial metrics, Interactive Brokers reported diluted earnings per share (EPS) on a comprehensive basis at $0.34 for the quarter ended March 31, 2017, reflecting a -33.3 percent year-over-year decrease from a profit of $0.51 per share during Q1 2016.
Business highlights, according to the company’s press release, included a pretax profit margin of 59 percent for the Electronic Brokerage division which was down from 68 percent in 2016. It also showed a -275 percent market making pretax loss margin during Q1 2017, down from 34 percent profit margin in the year-ago quarter. During the three months period through March 2017, customer equity grew 38 percent from 2016 to $96.8 billion, while customer debits increased 39 percent to $20.9 billion.
Finally, customer accounts at IB increased 18 percent from the year ago to 406 thousand, while total daily average revenue trades (DARTs) jumped 12 percent year-over-year to 657,000. Relative to last year’s figures, IB reported a climb in brokerage segment equity which totaled $4.3 billion while total equity registered $6.0 billion during Q1 2016.