Interactive Brokers Witnesses Net Revenue Boost in Q4 2023, Hitting $1,139M

The brokerage giant Interactive Brokers has released its financial results for the fourth quarter of 2023 (Q4 2023), reporting a net revenue of $1,139 million, with an adjusted figure of $1,149 million. 

During the same period last year, comparatively, the company disclosed $976 million in net revenue and an adjusted amount of $958 million.

Regarding pre-tax income, Interactive Brokers posted earnings of $816 million for Q4 2023, with an adjusted figure of $831 million. The pre-tax income reported in Q4 2022 was $689 million, with an adjusted amount of $671 million.

Interactive Brokers’ posted diluted earnings per share came in at $1.48, with an adjusted figure soaring to $1.52. This represents a significant improvement compared to the same period in the prior year.

The company witnessed an increase of 5% in commission revenue at $348 million. The customer trading volume demonstrated diverse performance, with options and futures contract volumes up 21% and 4% respectively, and stock share volume down 22%.

Interactive Brokers’ net interest income increased by a significant 29% to $730 million, driven by higher benchmark interest rates, increased customer margin loans, and growing customer credit balances. 

Due to higher customer trading volumes in options and futures, expenses in execution, clearing, and distribution fees increased by 11% to $100 million.

Interactive Brokers’ customer accounts grew 23% to 2.56 million, with customer equity reaching $426 billion, and expansion of 39%. The company’s Board of Directors has declared a quarterly cash dividend of $0.10 per share. The total equity reached $14.1 billion.

(Source: Finance Magnates)