•
|
Commission revenue increased 3% to $331 million on higher customer futures trading volume and larger average trade size in options, tempered by lower customer stock trading volume.
|
•
|
Net interest income increased 92% to $565 million on higher benchmark interest rates and customer credit balances, despite a decline in margin lending balances.
|
•
|
Other income increased $107 million to a gain of $37 million. This increase was mainly comprised of $58 million related to our strategic investment in Up Fintech Holding Limited ("Tiger Brokers"), $34 million related to our currency diversification strategy and $6 million related to the remeasurement of our Tax Receivable Agreement liability.
|
•
|
Reported pretax profit margin was 71% for the current quarter and 70% as adjusted. For the year-ago quarter, reported pretax margin was 62% and 66% as adjusted.
|
•
|
Total equity of $11.6 billion.
|
•
|
Customer accounts increased 25% to 2.09 million.
|
•
|
Customer equity decreased 18% to $306.7 billion.
|
•
|
Total DARTs2 decreased 22% to 1.89 million.
|
•
|
Cleared DARTs decreased 22% to 1.69 million.
|
•
|
Customer credits increased 9% to $95.2 billion.
|
•
|
Customer margin loans decreased 29% to $38.9 billion.
|
Three Months
|
Twelve Months
| |||||||||||||
Ended December 31,
|
Ended December 31,
| |||||||||||||
2022
|
2021
|
2022
|
2021
| |||||||||||
(in millions, except share and per share data)
| ||||||||||||||
Revenues:
| ||||||||||||||
Commissions
|
$
|
331
|
$
|
320
|
$
|
1,322
|
$
|
1,350
| ||||||
Other fees and services
|
43
|
58
|
184
|
218
| ||||||||||
Other income (loss)
|
37
|
(70)
|
(107)
|
(2)
| ||||||||||
Total non-interest income
|
411
|
308
|
1,399
|
1,566
| ||||||||||
Interest income
|
1,111
|
350
|
2,686
|
1,372
| ||||||||||
Interest expense
|
(546)
|
(55)
|
(1,018)
|
(224)
| ||||||||||
Total net interest income
|
565
|
295
|
1,668
|
1,148
| ||||||||||
Total net revenues
|
976
|
603
|
3,067
|
2,714
| ||||||||||
Non-interest expenses:
| ||||||||||||||
Execution, clearing and distribution fees
|
90
|
53
|
324
|
236
| ||||||||||
Employee compensation and benefits
|
119
|
108
|
454
|
399
| ||||||||||
Occupancy, depreciation and amortization
|
22
|
22
|
90
|
80
| ||||||||||
Communications
|
8
|
9
|
33
|
33
| ||||||||||
General and administrative
|
48
|
38
|
165
|
176
| ||||||||||
Customer bad debt
|
-
|
-
|
3
|
3
| ||||||||||
Total non-interest expenses
|
287
|
230
|
1,069
|
927
| ||||||||||
Income before income taxes
|
689
|
373
|
1,998
|
1,787
| ||||||||||
Income tax expense
|
56
|
35
|
156
|
151
| ||||||||||
Net income
|
633
|
338
|
1,842
|
1,636
| ||||||||||
Net income attributable to noncontrolling interests
|
497
|
271
|
1,462
|
1,328
| ||||||||||
Net income available for common stockholders
|
$
|
136
|
$
|
67
|
$
|
380
|
$
|
308
| ||||||
Earnings per share:
| ||||||||||||||
Basic
|
$
|
1.32
|
$
|
0.68
|
$
|
3.78
|
$
|
3.27
| ||||||
Diluted
|
$
|
1.31
|
$
|
0.67
|
$
|
3.75
|
$
|
3.24
| ||||||
Weighted average common shares outstanding:
| ||||||||||||||
Basic
|
102,875,250
|
98,181,875
|
100,460,016
|
94,167,572
| ||||||||||
Diluted
|
103,656,668
|
98,980,339
|
101,299,609
|
95,009,880
|
Three Months
|
Twelve Months
| |||||||||||||
Ended December 31,
|
Ended December 31,
| |||||||||||||
2022 |
2021 | 2022 | 2021 | |||||||||||
(in millions, except share and per share data)
| ||||||||||||||
Comprehensive income:
| ||||||||||||||
Net income available for common stockholders
|
$
|
136
|
$
|
67
|
$
|
380
|
$
|
308
| ||||||
Other comprehensive income:
| ||||||||||||||
Cumulative translation adjustment, before income taxes
|
38
|
(1)
|
(26)
|
(22)
| ||||||||||
Income taxes related to items of other comprehensive income
|
-
|
-
|
-
|
-
| ||||||||||
Other comprehensive income (loss), net of tax
|
38
|
(1)
|
(26)
|
(22)
| ||||||||||
Comprehensive income available for common stockholders
|
$
|
174
|
$
|
66
|
$
|
354
|
$
|
286
| ||||||
Comprehensive earnings per share:
| ||||||||||||||
Basic
|
$
|
1.70
|
$
|
0.67
|
$
|
3.53
|
$
|
3.04
| ||||||
Diluted
|
$
|
1.68
|
$
|
0.67
|
$
|
3.50
|
$
|
3.01
| ||||||
Weighted average common shares outstanding:
| ||||||||||||||
Basic
|
102,875,250
|
98,181,875
|
100,460,016
|
94,167,572
| ||||||||||
Diluted
|
103,656,668
|
98,980,339
|
101,299,609
|
95,009,880
| ||||||||||
Comprehensive income attributable to noncontrolling interests:
| ||||||||||||||
Net income attributable to noncontrolling interests
|
$
|
497
|
$
|
271
|
$
|
1,462
|
$
|
1,328
| ||||||
Other comprehensive income - cumulative translation adjustment
|
120
|
(1)
|
(85)
|
(75)
| ||||||||||
Comprehensive income attributable to noncontrolling interests
|
$
|
617
|
$
|
270
|
$
|
1,377
|
$
|
1,253
|
December 31,
2022
|
December 31,
2021
| ||||||||
(in millions)
| |||||||||
Assets
| |||||||||
Cash and cash equivalents
|
$
|
3,436
|
$
|
2,395
| |||||
Cash - segregated for regulatory purposes
|
25,167
|
22,888
| |||||||
Securities - segregated for regulatory purposes
|
31,781
|
15,121
| |||||||
Securities borrowed
|
4,749
|
3,912
| |||||||
Securities purchased under agreements to resell
|
6,029
|
4,380
| |||||||
Financial instruments owned, at fair value
|
485
|
673
| |||||||
Receivables from customers, net of allowance for credit losses
|
38,760
|
54,935
| |||||||
Receivables from brokers, dealers and clearing organizations
|
3,469
|
3,771
| |||||||
Other assets
|
1,267
|
1,038
| |||||||
Total assets
|
$
|
115,143
|
$
|
109,113
| |||||
Liabilities and equity
| |||||||||
Liabilities
| |||||||||
Short-term borrowings
|
$
|
18
|
$
|
27
| |||||
Securities loaned
|
8,940
|
11,769
| |||||||
Financial instruments sold but not yet purchased, at fair value
|
146
|
182
| |||||||
Other payables:
| |||||||||
Customers
|
93,195
|
85,634
| |||||||
Brokers, dealers and clearing organizations
|
291
|
557
| |||||||
Other payables
|
938
|
722
| |||||||
94,424
|
86,913
| ||||||||
Total liabilities
|
103,528
|
98,891
| |||||||
Equity
| |||||||||
Stockholders' equity
|
2,848
|
2,395
| |||||||
Noncontrolling interests
|
8,767
|
7,827
| |||||||
Total equity
|
11,615
|
10,222
| |||||||
Total liabilities and equity
|
$
|
115,143
|
$
|
109,113
| |||||
December 31, 2022
|
December 31, 2021
| ||||||||
Ownership of IBG LLC Membership Interests
|
Interests
|
%
|
Interests
|
%
| |||||
IBG, Inc.
|
102,927,703
|
24.5%
|
98,230,127
|
23.5%
| |||||
Noncontrolling interests (IBG Holdings LLC)
|
316,609,102
|
75.5%
|
319,880,492
|
76.5%
| |||||
Total IBG LLC membership interests
|
419,536,805
|
100.0%
|
418,110,619
|
100.0%
|
Cleared
|
Non-Cleared
|
Avg. Trades
| ||||||||||||||||
Customer
|
%
|
Customer
|
%
|
Principal
|
%
|
Total
|
%
|
per U.S.
| ||||||||||
Period
|
Trades
|
Change
|
Trades
|
Change
|
Trades
|
Change
|
Trades
|
Change
|
Trading Day
| |||||||||
2020
|
620,405
|
56,834
|
27,039
|
704,278
|
2,795
| |||||||||||||
2021
|
871,319
|
40%
|
78,276
|
38%
|
32,621
|
21%
|
982,216
|
39%
|
3,905
| |||||||||
2022
|
735,619
|
(16%)
|
70,049
|
(11%)
|
32,863
|
1%
|
838,531
|
(15%)
|
3,347
| |||||||||
4Q2021
|
207,457
|
19,961
|
8,001
|
235,419
|
3,707
| |||||||||||||
4Q2022
|
165,769
|
(20%)
|
14,923
|
(25%)
|
7,358
|
(8%)
|
188,050
|
(20%)
|
3,009
| |||||||||
3Q2022
|
170,240
|
16,181
|
7,953
|
194,374
|
3,037
| |||||||||||||
4Q2022
|
165,769
|
(3%)
|
14,923
|
(8%)
|
7,358
|
(7%)
|
188,050
|
(3%)
|
3,009
|
Options
|
%
|
Futures1 |
%
|
Stocks
|
%
| |||||||
Period
|
(contracts)
|
Change
|
(contracts)
|
Change
|
(shares)
|
Change
| ||||||
2020
|
624,035
|
167,078
|
338,513,068
| |||||||||
2021
|
887,849
|
42%
|
154,866
|
(7%)
|
771,273,709
|
128%
| ||||||
2022
|
908,415
|
2%
|
207,138
|
34%
|
330,035,586
|
(57%)
| ||||||
4Q2021
|
244,349
|
41,997
|
117,410,095
| |||||||||
4Q2022
|
229,441
|
(6%)
|
51,519
|
23%
|
75,713,964
|
(36%)
| ||||||
3Q2022
|
215,988
|
50,486
|
75,776,756
| |||||||||
4Q2022
|
229,441
|
6%
|
51,519
|
2%
|
75,713,964
|
(0%)
|
Options
|
%
|
Futures1 |
%
|
Stocks
|
%
| |||||||
Period
|
(contracts)
|
Change
|
(contracts)
|
Change
|
(shares)
|
Change
| ||||||
2020
|
584,195
|
164,555
|
331,263,604
| |||||||||
2021
|
852,169
|
46%
|
152,787
|
(7%)
|
766,211,726
|
131%
| ||||||
2022
|
873,914
|
3%
|
203,933
|
33%
|
325,368,714
|
(58%)
| ||||||
4Q2021
|
235,400
|
41,318
|
116,546,652
| |||||||||
4Q2022
|
221,855
|
(6%)
|
50,773
|
23%
|
74,353,901
|
(36%)
| ||||||
3Q2022
|
208,145
|
49,725
|
74,944,418
| |||||||||
4Q2022
|
221,855
|
7%
|
50,773
|
2%
|
74,353,901
|
(1%)
|
Options
|
%
|
Futures1 |
%
|
Stocks
|
%
| |||||||
Period
|
(contracts)
|
Change
|
(contracts)
|
Change
|
(shares)
|
Change
| ||||||
2020
|
518,965
|
163,101
|
320,376,365
| |||||||||
2021
|
773,284
|
49%
|
151,715
|
(7%)
|
752,720,070
|
135%
| ||||||
2022
|
781,373
|
1%
|
202,145
|
33%
|
314,462,672
|
(58%)
| ||||||
4Q2021
|
213,143
|
41,096
|
113,441,967
| |||||||||
4Q2022
|
194,962
|
(9%)
|
50,326
|
22%
|
71,924,864
|
(37%)
| ||||||
3Q2022
|
185,166
|
49,242
|
72,394,078
| |||||||||
4Q2022
|
194,962
|
5%
|
50,326
|
2%
|
71,924,864
|
(1%)
|
1 |
Includes options on futures.
|
Options
|
%
|
Futures1 |
%
|
Stocks
|
%
| |||||||
Period
|
(contracts)
|
Change
|
(contracts)
|
Change
|
(shares)
|
Change
| ||||||
2020
|
39,840
|
2,523
|
7,249,464
| |||||||||
2021
|
35,680
|
(10%)
|
2,079
|
(18%)
|
5,061,983
|
(30%)
| ||||||
2022
|
34,501
|
(3%)
|
3,205
|
54%
|
4,666,872
|
(8%)
| ||||||
4Q2021
|
8,949
|
679
|
863,443
| |||||||||
4Q2022
|
7,586
|
(15%)
|
746
|
10%
|
1,360,063
|
58%
| ||||||
3Q2022
|
7,843
|
761
|
832,338
| |||||||||
4Q2022
|
7,586
|
(3%)
|
746
|
(2%)
|
1,360,063
|
63%
|
1 |
Includes options on futures.
|
Year over Year
|
4Q2022
|
4Q2021
|
% Change
| |||||
Total Accounts (in thousands)
|
2,091
|
1,676
|
25%
| |||||
Customer Equity (in billions)1 |
$
|
306.7
|
$
|
373.8
|
(18%)
| |||
Cleared DARTs (in thousands)
|
1,689
|
2,162
|
(22%)
| |||||
Total Customer DARTs (in thousands)
|
1,889
|
2,436
|
(22%)
| |||||
Cleared Customers
| ||||||||
Commission per Cleared Commissionable Order2 |
$
|
3.15
|
$
|
2.38
|
32%
| |||
Cleared Avg. DARTs per Account (Annualized)
|
206
|
339
|
(39%)
| |||||
Consecutive Quarters
|
4Q2022
|
3Q2022
|
% Change
| |||||
Total Accounts (in thousands)
|
2,091
|
2,012
|
4%
| |||||
Customer Equity (in billions)1 |
$
|
306.7
|
$
|
287.1
|
7%
| |||
Cleared DARTs (in thousands)
|
1,689
|
1,706
|
(1%)
| |||||
Total Customer DARTs (in thousands)
|
1,889
|
1,920
|
(2%)
| |||||
Cleared Customers
| ||||||||
Commission per Cleared Commissionable Order2 |
$
|
3.15
|
$
|
2.96
|
6%
| |||
Cleared Avg. DARTs per Account (Annualized)
|
206
|
217
|
(5%)
|
1 |
Excludes non-customers.
|
2 |
Commissionable Order - a customer order that generates commissions.
|
Three Months
|
Twelve Months
| |||||||||||||
Ended December 31,
|
Ended December 31,
| |||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||
(in millions)
| ||||||||||||||
Average interest-earning assets
| ||||||||||||||
Segregated cash and securities
|
$
|
57,327
|
$
|
37,674
|
$
|
51,644
|
$
|
40,328
| ||||||
Customer margin loans
|
39,277
|
51,889
|
43,402
|
45,681
| ||||||||||
Securities borrowed
|
4,368
|
3,200
|
3,961
|
3,677
| ||||||||||
Other interest-earning assets
|
9,203
|
7,861
|
9,000
|
7,029
| ||||||||||
FDIC sweeps1 |
2,347
|
2,377
|
2,229
|
2,663
| ||||||||||
$
|
112,522
|
$
|
103,001
|
$
|
110,235
|
$
|
99,376
| |||||||
Average interest-bearing liabilities
| ||||||||||||||
Customer credit balances
|
$
|
93,401
|
$
|
83,001
|
$
|
90,172
|
$
|
79,297
| ||||||
Securities loaned
|
9,071
|
10,810
|
10,095
|
10,871
| ||||||||||
Other interest-bearing liabilities
|
1
|
1
|
4
|
109
| ||||||||||
$
|
102,473
|
$
|
93,812
|
$
|
100,271
|
$
|
90,277
| |||||||
Net interest income
| ||||||||||||||
Segregated cash and securities, net
|
$
|
454
|
$
|
(5)
|
$
|
742
|
$
|
(9)
| ||||||
Customer margin loans2 |
420
|
149
|
1,083
|
535
| ||||||||||
Securities borrowed and loaned, net
|
73
|
134
|
413
|
568
| ||||||||||
Customer credit balances, net2 |
(487)
|
8
|
(763)
|
33
| ||||||||||
Other net interest income1/3 |
112
|
11
|
207
|
36
| ||||||||||
Net interest income3 |
$
|
572
|
$
|
297
|
$
|
1,682
|
$
|
1,163
| ||||||
Net interest margin ("NIM")
|
2.02%
|
1.14%
|
1.53%
|
1.17%
| ||||||||||
Annualized yields
| ||||||||||||||
Segregated cash and securities
|
3.14%
|
-0.05%
|
1.44%
|
-0.02%
| ||||||||||
Customer margin loans
|
4.24%
|
1.14%
|
2.50%
|
1.17%
| ||||||||||
Customer credit balances
|
2.07%
|
-0.04%
|
0.85%
|
-0.04%
|
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, 2022 and 2021, $3 million, $1 million, $10 million, and $15 million were reported in other fees and services, respectively. For the three and twelve months ended December 31, 2022 and 2021, $3 million, $1 million, $4 million, and $0 million were reported in other income, respectively. |
Three Months
|
Twelve Months
| ||||||||||||
Ended December 31,
|
Ended December 31,
| ||||||||||||
2022
|
2021
|
2022
|
2021
| ||||||||||
(in millions)
| |||||||||||||
Adjusted net revenues1 | |||||||||||||
Net revenues - GAAP
|
$
|
976
|
$
|
603
|
$
|
3,067
|
$
|
2,714
| |||||
Non-GAAP adjustments
| |||||||||||||
Currency diversification strategy, net
|
(11)
|
23
|
100
|
37
| |||||||||
Mark-to-market on investments2 |
(1)
|
57
|
52
|
30
| |||||||||
Remeasurement of TRA liability3 |
(6)
|
-
|
(6)
|
(1)
| |||||||||
Total non-GAAP adjustments
|
(18)
|
80
|
146
|
66
| |||||||||
Adjusted net revenues
|
$
|
958
|
$
|
683
|
$
|
3,213
|
$
|
2,780
| |||||
Adjusted income before income taxes1 | |||||||||||||
Income before income taxes - GAAP
|
$
|
689
|
$
|
373
|
$
|
1,998
|
$
|
1,787
| |||||
Non-GAAP adjustments
| |||||||||||||
Currency diversification strategy, net
|
(11)
|
23
|
100
|
37
| |||||||||
Mark-to-market on investments2 |
(1)
|
57
|
52
|
30
| |||||||||
Remeasurement of TRA liability3 |
(6)
|
-
|
(6)
|
(1)
| |||||||||
Total non-GAAP adjustments
|
(18)
|
80
|
146
|
66
| |||||||||
Adjusted income before income taxes
|
$
|
671
|
$
|
453
|
$
|
2,144
|
$
|
1,853
| |||||
Adjusted pre-tax profit margin
|
70%
|
66%
|
67%
|
67%
|
Three Months
|
Twelve Months
| ||||||||||||
Ended December 31,
|
Ended December 31,
| ||||||||||||
2022
|
2021
|
2022
|
2021
| ||||||||||
(in millions)
| |||||||||||||
Adjusted net income available for common stockholders1 | |||||||||||||
Net income available for common stockholders - GAAP
|
$
|
136
|
$
|
67
|
$
|
380
|
$
|
308
| |||||
Non-GAAP adjustments
| |||||||||||||
Currency diversification strategy, net
|
(3)
|
6
|
24
|
8
| |||||||||
Mark-to-market on investments2 |
(0)
|
13
|
13
|
7
| |||||||||
Remeasurement of TRA liability3 |
(6)
|
0
|
(6)
|
(1)
| |||||||||
Income tax effect of above adjustments4 |
1
|
(4)
|
(7)
|
(3)
| |||||||||
Remeasurement of deferred income taxes5 |
7
|
-
|
7
|
1
| |||||||||
Total non-GAAP adjustments
|
(1)
|
15
|
30
|
12
| |||||||||
Adjusted net income available for common stockholders
|
$
|
134
|
$
|
82
|
$
|
410
|
$
|
320
|
Three Months
|
Twelve Months
| ||||||||||||
Ended December 31,
|
Ended December 31,
| ||||||||||||
2022
|
2021
|
2022
|
2021
| ||||||||||
(in dollars)
| |||||||||||||
Adjusted diluted EPS1 | |||||||||||||
Diluted EPS - GAAP
|
$
|
1.31
|
$
|
0.67
|
$
|
3.75
|
$
|
3.24
| |||||
Non-GAAP adjustments
| |||||||||||||
Currency diversification strategy, net
|
(0.03)
|
0.06
|
0.24
|
0.09
| |||||||||
Mark-to-market on investments2 |
(0.00)
|
0.13
|
0.12
|
0.07
| |||||||||
Remeasurement of TRA liability3 |
(0.06)
|
0.00
|
(0.06)
|
(0.01)
| |||||||||
Income tax effect of above adjustments4 |
0.01
|
(0.04)
|
(0.07)
|
(0.03)
| |||||||||
Remeasurement of deferred income taxes5 |
0.07
|
0.00
|
0.07
|
0.01
| |||||||||
Total non-GAAP adjustments
|
(0.01)
|
0.15
|
0.30
|
0.13
| |||||||||
Adjusted diluted EPS
|
$
|
1.30
|
$
|
0.83
|
$
|
4.05
|
$
|
3.37
| |||||
Diluted weighted average common shares outstanding
|
103,656,668
|
98,980,339
|
101,299,609
|
95,009,880
|
•
|
We define adjusted net revenues as net revenues adjusted to remove the effect of our currency diversification strategy and our net mark-to-market gains (losses) on investments2.
|
•
|
We define adjusted income before income taxes as income before income taxes adjusted to remove the effect of our currency diversification strategy and our net mark-to-market gains (losses) on investments.
|
•
|
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 and our mark-to-market gains (losses) on investments.
|
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Interactive Brokers Group Inc. published this content on 17 January 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 17 January 2023 21:09:04 UTC.