Interactive Brokers Sees Q2 Revenue Dip despite 36% Jump in Clients

Interactive Brokers (Nasdaq: IBKR) published its financials for the second quarter of 2022 on Tuesday, reporting net revenue of $656 million, with the adjusted figure at $717 million. There was a 13 percent decline year-over-year in net revenue, whereas the adjusted amount strengthened by 10.3 percent.

The revenue generated from commissions jumped 5 percent to $322 million. It was pushed by the higher customer options and futures trading volume with a lower stock volume.

Additionally, the net interest income of the broker increased 27 percent to $348 million. However, the income from the other sources dipped $175 million to a loss of $57 million. The disappearance of several non-recurrence gains pushed this segment to losses.

The currency diversification strategy of the broker in Q2 decreased its comprehensive earnings by $158 million, which was reported in other incomes.

The broker ended the quarter between April and June with a pre-tax income of $392 million, which is down from $541 million generated a year earlier. However, the adjusted number strengthened to $453 million from $437 million.

The pre-tax profit margin for the reported figures dropped to 60 percent from 70 percent in a year, whereas the adjusted figure witnessed a drop to 63 percent from 67 percent.

Client Metrics

Despite the declined reported net revenue and profits, the American broker witnessed a string quarter when it comes to some customer metrics. The number of customer accounts on the platform increased by 36 percent year-over-year to reach 1.92 million by the end of the quarter.

Moreover, customer credits jumped 13 percent to $92.5 billion.

However, the total DARTs for the quarter declined 6 percent to 2.17 million. The cleared DARTs came in at 1.93 million, which was 7 percent lower. Further, the customer margin loans witnessed a decline of 13 percent to $42.6 billion.