[July 17, 2018] |
|
Interactive Brokers Group Announces 2Q2018 Results
Interactive Brokers Group, Inc. (NASDAQ GS: IBKR), an automated global
electronic broker and market maker, today reported diluted earnings per
share on net income of $0.58 for the quarter ended June 30, 2018,
compared to $0.32 for the same period in 2017, and diluted earnings per
share on comprehensive income of $0.39 for the quarter, compared to
$0.41 for the same period in 2017.
Net revenues were $445 million and income before income taxes was $271
million this quarter, compared to net revenues of $387 million and
income before income taxes of $204 million for the same period in 2017.
The results for the quarter were positively impacted by strong growth in
net interest income, which increased $70 million, or 45%, and higher
commissions, which increased $25 million, or 16% from the year-ago
quarter.
In addition, the results for the quarter include a $21 million loss on
our currency diversification strategy, compared to a $29 million gain in
the same period in 2017; and a $3 million net mark-to-market gain on our
U.S. government securities portfolio, compared to a $3 million net
mark-to-market loss in the same period in 2017.
The Interactive Brokers Group, Inc. Board of Directors declared a
quarterly cash dividend of $0.10 per share. This dividend is payable on
September 14, 2018 to shareholders of record as of August 31, 2018.
Business Highlights
-
61% pretax profit margin for this quarter, up from 53% in the year-ago
quarter.
-
64% Electronic Brokerage pretax profit margin for this quarter, up
from 59% in the year-ago quarter.
-
Customer equity grew 29% from the year-ago quarter to $134.7 billion
and customer debits increased 27% to $28.8 billion.
-
Customer accounts increased 27% from the year-ago quarter to 542
thousand.
-
Total DARTs1 increased 19% from the year-ago quarter to 797
thousand.
-
Brokerage segment equity was $5.2 billion. Total equity was $6.7
billion.
__________
|
1 Daily average revenue trades (DARTs) are based on
customer orders.
|
|
Segment Overview
Electronic Brokerage
Electronic brokerage segment income before income taxes increased 43%,
to $283 million in the quarter ended June 30, 2018, compared to the same
period last year. Net revenues increased 33% to $443 million on higher
net interest income, commissions revenue and other income.
Net interest income increased 47% as average customer credit and margin
loan balances and benchmark interest rates increased from the year-ago
quarter. Commissions revenue increased 16% from the year-ago quarter on
higher customer volumes in futures and options, which increased 21% and
13%, respectively, while stock volumes decreased 5% from the year-ago
quarter. Other income increased 58% on higher net mark-to-market gains
on our U.S. government securities portfolio and other investments.
Pretax profit margin was 64% for the quarter ended June 30, 2018, up
from 59% in the same period last year.
Customer accounts grew 27% to 542 thousand and customer equity increased
29% from the year-ago quarter to $134.7 billion. Total DARTs for cleared
and execution-only customers increased 19% to 797 thousand from the
year-ago quarter. Cleared DARTs were 739 thousand, 19% higher than in
the same period last year.
Market Making
Market making segment income before income taxes increased to $9 million
in the quarter ended June 30, 2018, as compared to a pretax loss of $24
million in the year-ago quarter, during which we continued to wind down
operations in this segment. The quarter's results reflect lower
operating costs on the remaining operations and the non-recurrence of
$22 million in one-time exit costs related to the wind-down of our
options market making business recognized in the year-ago quarter. In
the third quarter of 2017 we completed the transfer of our U.S. options
market making business to Two Sigma Securities, LLC and by year-end we
had exited the majority of our market making activities outside the U.S.
Effects of Foreign Currency Diversification
In connection with our currency diversification strategy, we have
determined to base our net worth in GLOBALs, a basket of 14 major
currencies in which we hold our equity. In this quarter, our currency
diversification strategy decreased our comprehensive earnings by $100
million, as the U.S. dollar value of the GLOBAL decreased by
approximately 1.41%. The effects of the currency diversification
strategy are reported as components of (1) Other Income in the corporate
segment and (2) Other Comprehensive Income ("OCI").
Conference Call Information:
Interactive Brokers Group, Inc. will hold a conference call with
investors today, July 17, 2018, at 4:30 p.m. ET to discuss its quarterly
results. Investors who would like to listen to the conference call live
should dial 877-324-1965 (U.S. domestic) and 631-291-4512
(international). The number should be dialed approximately ten minutes
prior to the start of the conference call. Ask for the "Interactive
Brokers Conference Call."
The conference call will also be accessible simultaneously, and through
replays, as an audio webcast through the Investor Relations section of
the Interactive Brokers web site, www.interactivebrokers.com/ir.
About Interactive Brokers Group, Inc.:
Interactive Brokers Group affiliates provide automated trade execution
and custody of securities, commodities and foreign exchange around the
clock on over 120 markets in numerous countries and currencies, from a
single IB Universal Account? to customers worldwide.
We service individual investors, hedge funds, proprietary trading
groups, financial advisors and introducing brokers. Our four decades of
focus on technology and automation has enabled us to equip our customers
with a uniquely sophisticated platform to manage their investment
portfolios at the lowest cost according to Barron's Best Online Brokers
review, March 26, 2018. We strive to provide our customers with
advantageous execution prices and trading, risk and portfolio management
tools, research facilities and investment products, all at low or no
cost, positioning them to achieve superior returns on investments.
Cautionary Note Regarding Forward-Looking Statements:
The foregoing information contains certain forward-looking statements
that reflect the Company's current views with respect to certain current
and future events and financial performance. These forward-looking
statements are and will be, as the case may be, subject to many risks,
uncertainties and factors relating to the Company's operations and
business environment which may cause the Company's actual results to be
materially different from any future results, expressed or implied, in
these forward-looking statements. Any forward-looking statements in this
release are based upon information available to the Company on the date
of this release. The Company does not undertake to publicly update or
revise its forward-looking statements even if experience or future
changes make it clear that any statements expressed or implied therein
will not be realized. Additional information on risk factors that could
potentially affect the Company's financial results may be found in the
Company's filings with the Securities and Exchange Commission.
|
INTERACTIVE BROKERS GROUP, INC. AND SUBSIDIARIES
OPERATING DATA
|
|
TRADE VOLUMES:
|
(in 000'S, except %)
|
|
|
|
|
|
|
|
|
|
|
|
|
Brokerage
|
|
|
|
|
|
|
|
|
|
|
|
|
Market
|
|
|
|
Brokerage
|
|
|
|
Non
|
|
|
|
|
|
|
|
Avg. Trades
|
|
|
|
|
Making
|
|
%
|
|
Cleared
|
|
%
|
|
Cleared
|
|
%
|
|
Total
|
|
%
|
|
per U.S.
|
Period
|
|
|
|
Trades
|
|
Change
|
|
Trades
|
|
Change
|
|
Trades
|
|
Change
|
|
Trades
|
|
Change
|
|
Trading Day
|
2015
|
|
|
|
65,937
|
|
|
|
242,846
|
|
|
|
18,769
|
|
|
|
327,553
|
|
|
|
1,305
|
2016
|
|
|
|
64,038
|
|
(3%)
|
|
259,932
|
|
7%
|
|
16,515
|
|
(12%)
|
|
340,485
|
|
4%
|
|
1,354
|
2017
|
|
|
|
31,282
|
|
(51%)
|
|
265,501
|
|
2%
|
|
14,835
|
|
(10%)
|
|
311,618
|
|
(8%)
|
|
1,246
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2Q2017
|
7,960
|
|
|
|
64,823
|
|
|
|
3,672
|
|
|
|
76,455
|
|
|
|
1,214
|
2Q2018
|
4,575
|
|
(43%)
|
|
78,026
|
|
20%
|
|
4,641
|
|
26%
|
|
87,242
|
|
14%
|
|
1,363
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1Q2018
|
4,469
|
|
|
|
89,621
|
|
|
|
4,695
|
|
|
|
98,785
|
|
|
|
1,619
|
2Q2018
|
4,575
|
|
2%
|
|
78,026
|
|
(13%)
|
|
4,641
|
|
(1%)
|
|
87,242
|
|
(12%)
|
|
1,363
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONTRACT AND SHARE VOLUMES:
|
(in 000's, except %)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Options
|
|
%
|
|
Futures1
|
|
%
|
|
Stocks
|
|
%
|
Period
|
|
(contracts)
|
|
Change
|
|
(contracts)
|
|
Change
|
|
(shares)
|
|
Change
|
2015
|
|
634,388
|
|
|
|
140,668
|
|
|
|
172,742,520
|
|
|
2016
|
|
572,834
|
|
(10%)
|
|
143,287
|
|
2%
|
|
155,439,227
|
|
(10%)
|
2017
|
|
395,885
|
|
(31%)
|
|
124,123
|
|
(13%)
|
|
220,247,921
|
|
42%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2Q2017
|
91,879
|
|
|
|
30,805
|
|
|
|
53,378,165
|
|
|
2Q2018
|
93,253
|
|
1%
|
|
36,693
|
|
19%
|
|
51,370,386
|
|
(4%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1Q2018
|
115,438
|
|
|
|
43,449
|
|
|
|
68,380,398
|
|
|
2Q2018
|
93,253
|
|
(19%)
|
|
36,693
|
|
(16%)
|
|
51,370,386
|
|
(25%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MARKET MAKING
|
|
|
|
|
|
|
|
|
|
|
|
|
Options
|
|
%
|
|
Futures1
|
|
%
|
|
Stocks
|
|
%
|
Period
|
|
(contracts)
|
|
Change
|
|
(contracts)
|
|
Change
|
|
(shares)
|
|
Change
|
2015
|
|
335,406
|
|
|
|
14,975
|
|
|
|
15,376,076
|
|
|
2016
|
|
307,377
|
|
(8%)
|
|
14,205
|
|
(5%)
|
|
13,082,887
|
|
(15%)
|
2017
|
|
102,025
|
|
(67%)
|
|
5,696
|
|
(60%)
|
|
7,139,622
|
|
(45%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2Q2017
|
19,831
|
|
|
|
1,143
|
|
|
|
1,620,275
|
|
|
2Q2018
|
11,813
|
|
(40%)
|
|
756
|
|
(34%)
|
|
2,442,203
|
|
51%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1Q2018
|
13,256
|
|
|
|
935
|
|
|
|
2,817,831
|
|
|
2Q2018
|
11,813
|
|
(11%)
|
|
756
|
|
(19%)
|
|
2,442,203
|
|
(13%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BROKERAGE TOTAL
|
|
|
|
|
|
|
|
|
|
|
|
Options
|
|
%
|
|
Futures1
|
|
%
|
|
Stocks
|
|
%
|
Period
|
|
(contracts)
|
|
Change
|
|
(contracts)
|
|
Change
|
|
(shares)
|
|
Change
|
2015
|
|
298,982
|
|
|
|
125,693
|
|
|
|
157,366,444
|
|
|
2016
|
|
265,457
|
|
(11%)
|
|
129,082
|
|
3%
|
|
142,356,340
|
|
(10%)
|
2017
|
|
293,860
|
|
11%
|
|
118,427
|
|
(8%)
|
|
213,108,299
|
|
50%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2Q2017
|
72,048
|
|
|
|
29,662
|
|
|
|
51,757,890
|
|
|
2Q2018
|
81,440
|
|
13%
|
|
35,937
|
|
21%
|
|
48,928,183
|
|
(5%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1Q2018
|
102,182
|
|
|
|
42,514
|
|
|
|
65,562,567
|
|
|
2Q2018
|
81,440
|
|
(20%)
|
|
35,937
|
|
(15%)
|
|
48,928,183
|
|
(25%)
|
__________
|
1 Includes options on futures.
|
|
|
|
|
|
|
|
|
INTERACTIVE BROKERS GROUP, INC. AND SUBSIDIARIES
OPERATING DATA, CONTINUED
|
|
|
|
|
|
|
|
|
BROKERAGE CLEARED
|
|
|
|
|
|
|
|
|
|
|
|
Options
|
|
%
|
|
Futures1
|
|
%
|
|
Stocks
|
|
%
|
Period
|
|
(contracts)
|
|
Change
|
|
(contracts)
|
|
Change
|
|
(shares)
|
|
Change
|
2015
|
|
244,356
|
|
|
|
124,206
|
|
|
|
153,443,988
|
|
|
2016
|
|
227,413
|
|
(7%)
|
|
128,021
|
|
3%
|
|
138,523,932
|
|
(10%)
|
2017
|
|
253,304
|
|
11%
|
|
116,858
|
|
(9%)
|
|
209,435,662
|
|
51%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2Q2017
|
62,342
|
|
|
|
29,255
|
|
|
|
50,807,138
|
|
|
2Q2018
|
71,873
|
|
15%
|
|
35,679
|
|
22%
|
|
47,840,126
|
|
(6%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1Q2018
|
87,705
|
|
|
|
41,742
|
|
|
|
64,494,943
|
|
|
2Q2018
|
71,873
|
|
(18%)
|
|
35,679
|
|
(15%)
|
|
47,840,126
|
|
(26%)
|
__________
|
1 Includes options on futures.
|
BROKERAGE STATISTICS
|
|
|
|
|
|
|
|
|
(in 000's, except % and where noted)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year over Year
|
|
|
2Q2018
|
|
|
2Q2017
|
|
% Change
|
Total Accounts
|
|
|
542
|
|
|
428
|
|
27%
|
Customer Equity (in billions)1
|
|
$
|
134.7
|
|
$
|
104.8
|
|
29%
|
|
|
|
|
|
|
|
|
|
Cleared DARTs
|
|
|
739
|
|
|
621
|
|
19%
|
Total Customer DARTs
|
|
|
797
|
|
|
669
|
|
19%
|
|
|
|
|
|
|
|
|
|
Cleared Customers (in $'s, except DART per account)
|
|
|
|
|
|
|
|
|
Commission per DART
|
|
$
|
3.86
|
|
$
|
4.00
|
|
(4%)
|
DART per Avg. Account (Annualized)
|
|
|
350
|
|
|
372
|
|
(6%)
|
Net Revenue per Avg. Account (Annualized)
|
|
$
|
3,190
|
|
$
|
3,141
|
|
2%
|
|
|
|
|
|
|
|
|
|
Consecutive Quarters
|
|
|
2Q2018
|
|
|
1Q2018
|
|
% Change
|
Total Accounts
|
|
|
542
|
|
|
517
|
|
5%
|
Customer Equity (in billions)1
|
|
$
|
134.7
|
|
$
|
129.2
|
|
4%
|
|
|
|
|
|
|
|
|
|
Cleared DARTs
|
|
|
739
|
|
|
876
|
|
(16%)
|
Total Customer DARTs
|
|
|
797
|
|
|
939
|
|
(15%)
|
|
|
|
|
|
|
|
|
|
Cleared Customers (in $'s, except DART per account)
|
|
|
|
|
|
|
|
|
Commission per DART
|
|
$
|
3.86
|
|
$
|
4.04
|
|
(4%)
|
DART per Avg. Account (Annualized)
|
|
|
350
|
|
|
439
|
|
(20%)
|
Net Revenue per Avg. Account (Annualized)
|
|
$
|
3,190
|
|
$
|
3,768
|
|
(15%)
|
__________
|
1 Excluded non-customers.
|
|
INTERACTIVE BROKERS GROUP, INC. AND SUBSIDIARIES
NET INTEREST MARGIN
(UNAUDITED)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
|
|
|
Six Months
|
|
|
|
|
|
Ended June 30,
|
|
|
Ended June 30,
|
|
|
|
|
|
2018
|
|
|
2017
|
|
|
2018
|
|
|
2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions)
|
Average interest-earning assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segregated cash and securities
|
|
|
$
|
19,512
|
|
|
|
$
|
24,063
|
|
|
|
$
|
20,248
|
|
|
|
$
|
24,298
|
|
|
Customer margin loans
|
|
|
|
29,839
|
|
|
|
|
22,134
|
|
|
|
|
29,658
|
|
|
|
|
20,924
|
|
|
Securities borrowed
|
|
|
|
3,327
|
|
|
|
|
4,062
|
|
|
|
|
3,202
|
|
|
|
|
4,031
|
|
|
Other interest-earning assets
|
|
|
|
4,020
|
|
|
|
|
2,681
|
|
|
|
|
4,079
|
|
|
|
|
2,512
|
|
|
FDIC sweeps1
|
|
|
|
1,186
|
|
|
|
|
61
|
|
|
|
|
973
|
|
|
|
|
47
|
|
|
|
|
|
|
$
|
57,884
|
|
|
|
$
|
53,001
|
|
|
|
$
|
58,160
|
|
|
|
$
|
51,812
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average interest-bearing liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Customer credit balances
|
|
|
$
|
47,390
|
|
|
|
$
|
44,791
|
|
|
|
$
|
47,657
|
|
|
|
$
|
43,903
|
|
|
Securities loaned
|
|
|
|
4,013
|
|
|
|
|
3,653
|
|
|
|
|
4,178
|
|
|
|
|
3,632
|
|
|
|
|
|
|
$
|
51,403
|
|
|
|
$
|
48,444
|
|
|
|
$
|
51,835
|
|
|
|
$
|
47,535
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segregated cash and securities, net2
|
|
|
$
|
75
|
|
|
|
$
|
47
|
|
|
|
$
|
149
|
|
|
|
$
|
86
|
|
|
Customer margin loans3
|
|
|
|
164
|
|
|
|
|
89
|
|
|
|
|
303
|
|
|
|
|
164
|
|
|
Securities borrowed and loaned, net
|
|
|
|
36
|
|
|
|
|
37
|
|
|
|
|
83
|
|
|
|
|
70
|
|
|
Customer credit balances, net2/3
|
|
|
|
(63
|
)
|
|
|
|
(23
|
)
|
|
|
|
(112
|
)
|
|
|
|
(32
|
)
|
|
Other net interest income1/4
|
|
|
|
20
|
|
|
|
|
5
|
|
|
|
|
31
|
|
|
|
|
9
|
|
|
|
Net interest income
|
|
|
$
|
232
|
|
|
|
$
|
155
|
|
|
|
$
|
454
|
|
|
|
$
|
297
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest margin ("NIM")
|
|
|
|
1.61
|
%
|
|
|
|
1.17
|
%
|
|
|
|
1.57
|
%
|
|
|
|
1.16
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Annualized yields
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segregated cash and securities
|
|
|
|
1.54
|
%
|
|
|
|
0.78
|
%
|
|
|
|
1.48
|
%
|
|
|
|
0.71
|
%
|
|
Customer margin loans
|
|
|
|
2.20
|
%
|
|
|
|
1.61
|
%
|
|
|
|
2.06
|
%
|
|
|
|
1.58
|
%
|
|
Customer credit balances
|
|
|
|
0.53
|
%
|
|
|
|
0.21
|
%
|
|
|
|
0.47
|
%
|
|
|
|
0.15
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
We have recategorized components of net interest income related to
currencies with negative interest rates and as such, prior period
amounts have been adjusted to conform to the current period
presentation. For the quarter and six months ended June 30, 2017, $4
million and $8 million has been recategorized from net interest
income on "segregated cash and securities, net" to "customer credit
balances, net", respectively.
|
|
|
|
|
|
|
|
3
|
|
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).
|
|
|
|
|
|
|
|
4
|
|
Includes income from financial instruments which has the same
characteristics as interest, but is reported in other income.
|
|
INTERACTIVE BROKERS GROUP, INC. AND SUBSIDIARIES
SEGMENT FINANCIAL INFORMATION
(UNAUDITED)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
|
|
|
Six Months
|
|
|
|
|
|
|
Ended June 30,
|
|
|
Ended June 30,
|
|
|
|
|
|
|
2018
|
|
|
2017
|
|
|
2018
|
|
|
2017
|
|
|
|
|
|
|
(in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Electronic Brokerage
|
|
Net revenues
|
|
|
$
|
443
|
|
|
|
$
|
334
|
|
|
|
$
|
908
|
|
|
|
$
|
648
|
|
|
|
|
Non-interest expenses
|
|
|
|
160
|
|
|
|
|
136
|
|
|
|
|
334
|
|
|
|
|
265
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income taxes
|
|
|
$
|
283
|
|
|
|
$
|
198
|
|
|
|
$
|
574
|
|
|
|
$
|
383
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pre-tax profit margin
|
|
|
|
64
|
%
|
|
|
|
59
|
%
|
|
|
|
63
|
%
|
|
|
|
59
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Market Making
|
|
Net revenues
|
|
|
$
|
22
|
|
|
|
$
|
23
|
|
|
|
$
|
43
|
|
|
|
$
|
31
|
|
|
|
|
Non-interest expenses
|
|
|
|
13
|
|
|
|
|
47
|
|
|
|
|
25
|
|
|
|
|
77
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) before income taxes
|
|
|
$
|
9
|
|
|
|
$
|
(24
|
)
|
|
|
$
|
18
|
|
|
|
$
|
(46
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pre-tax profit (loss) margin
|
|
|
|
41
|
%
|
|
|
|
(104
|
%)
|
|
|
|
42
|
%
|
|
|
|
(148
|
%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate 1
|
|
Net revenues
|
|
|
$
|
(20
|
)
|
|
|
$
|
30
|
|
|
|
$
|
21
|
|
|
|
$
|
82
|
|
|
|
|
Non-interest expenses
|
|
|
|
1
|
|
|
|
|
-
|
|
|
|
|
2
|
|
|
|
|
2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) before income taxes
|
|
|
$
|
(21
|
)
|
|
|
$
|
30
|
|
|
|
$
|
19
|
|
|
|
$
|
80
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
Net revenues
|
|
|
$
|
445
|
|
|
|
$
|
387
|
|
|
|
$
|
972
|
|
|
|
$
|
761
|
|
|
|
|
Non-interest expenses
|
|
|
|
174
|
|
|
|
|
183
|
|
|
|
|
361
|
|
|
|
|
344
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income taxes
|
|
|
$
|
271
|
|
|
|
$
|
204
|
|
|
|
$
|
611
|
|
|
|
$
|
417
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pre-tax profit margin
|
|
|
|
61
|
%
|
|
|
|
53
|
%
|
|
|
|
63
|
%
|
|
|
|
55
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1
|
|
Corporate includes corporate related activities as well as
inter-segment eliminations and gains and losses on positions held as
part of our overall currency diversification strategy.
|
|
INTERACTIVE BROKERS GROUP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(UNAUDITED)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
|
|
Six Months
|
|
|
|
|
Ended June 30,
|
|
Ended June 30,
|
|
|
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
|
|
|
(in millions, except share and per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
Commissions
|
|
$
|
185
|
|
|
$
|
160
|
|
$
|
405
|
|
|
$
|
314
|
Interest income
|
|
|
333
|
|
|
|
206
|
|
|
644
|
|
|
|
383
|
Trading gains
|
|
|
12
|
|
|
|
13
|
|
|
25
|
|
|
|
15
|
Other income
|
|
|
23
|
|
|
|
59
|
|
|
100
|
|
|
|
135
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenues
|
|
|
553
|
|
|
|
438
|
|
|
1,174
|
|
|
|
847
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense
|
|
|
108
|
|
|
|
51
|
|
|
202
|
|
|
|
86
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total net revenues
|
|
|
445
|
|
|
|
387
|
|
|
972
|
|
|
|
761
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
Execution and clearing
|
|
|
66
|
|
|
|
63
|
|
|
139
|
|
|
|
124
|
Employee compensation and benefits
|
|
|
68
|
|
|
|
66
|
|
|
138
|
|
|
|
128
|
Occupancy, depreciation and amortization
|
|
|
11
|
|
|
|
10
|
|
|
23
|
|
|
|
23
|
Communications
|
|
|
7
|
|
|
|
7
|
|
|
13
|
|
|
|
15
|
General and administrative
|
|
|
22
|
|
|
|
36
|
|
|
45
|
|
|
|
52
|
Customer bad debt
|
|
|
-
|
|
|
|
1
|
|
|
3
|
|
|
|
2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total non-interest expenses
|
|
|
174
|
|
|
|
183
|
|
|
361
|
|
|
|
344
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income taxes
|
|
|
271
|
|
|
|
204
|
|
|
611
|
|
|
|
417
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax expense
|
|
|
12
|
|
|
|
17
|
|
|
33
|
|
|
|
35
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
|
|
259
|
|
|
|
187
|
|
|
578
|
|
|
|
382
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to noncontrolling interests
|
|
|
217
|
|
|
|
164
|
|
|
490
|
|
|
|
335
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income available for common stockholders
|
|
$
|
42
|
|
|
$
|
23
|
|
$
|
88
|
|
|
$
|
47
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
0.58
|
|
|
$
|
0.33
|
|
$
|
1.22
|
|
|
$
|
0.68
|
Diluted
|
|
$
|
0.58
|
|
|
$
|
0.32
|
|
$
|
1.21
|
|
|
$
|
0.67
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average common shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
72,476,729
|
|
|
|
69,087,853
|
|
|
71,979,104
|
|
|
|
68,539,526
|
Diluted
|
|
|
73,329,496
|
|
|
|
70,063,427
|
|
|
72,923,743
|
|
|
|
69,613,567
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive income:
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income available for common stockholders
|
|
$
|
42
|
|
|
$
|
23
|
|
$
|
88
|
|
|
$
|
47
|
Other comprehensive income:
|
|
|
|
|
|
|
|
|
|
|
|
|
Cumulative translation adjustment, before income taxes
|
|
|
(14
|
)
|
|
|
6
|
|
|
(13
|
)
|
|
|
10
|
Income taxes related to items of other comprehensive income
|
|
-
|
|
|
|
-
|
|
|
-
|
|
|
|
-
|
Other comprehensive income (loss), net of tax
|
|
|
(14
|
)
|
|
|
6
|
|
|
(13
|
)
|
|
|
10
|
Comprehensive income available for common stockholders
|
|
$
|
28
|
|
|
$
|
29
|
|
$
|
75
|
|
|
$
|
57
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive income attributable to noncontrolling interests:
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to noncontrolling interests
|
|
$
|
217
|
|
|
$
|
164
|
|
$
|
490
|
|
|
$
|
335
|
Other comprehensive income - cumulative translation adjustment
|
|
(65
|
)
|
|
|
31
|
|
|
(58
|
)
|
|
|
50
|
Comprehensive income attributable to noncontrolling interests
|
|
$
|
152
|
|
|
$
|
195
|
|
$
|
432
|
|
|
$
|
385
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INTERACTIVE BROKERS GROUP, INC. AND SUBSIDIARIES
EARNINGS PER SHARE ON COMPREHENSIVE INCOME
(UNAUDITED)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
|
|
Six Months
|
|
|
|
|
|
|
Ended June 30,
|
|
Ended June 30,
|
|
|
|
|
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
|
|
|
|
|
(in millions, except share and per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive income available for common stockholders, net of tax
|
|
$
|
28
|
|
$
|
29
|
|
$
|
75
|
|
$
|
57
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive earnings per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
$
|
0.39
|
|
$
|
0.42
|
|
$
|
1.05
|
|
$
|
0.83
|
|
Diluted
|
|
|
$
|
0.39
|
|
$
|
0.41
|
|
$
|
1.03
|
|
$
|
0.81
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
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|
|
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|
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Weighted average common shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
72,476,729
|
|
|
69,087,853
|
|
|
71,979,104
|
|
|
68,539,526
|
|
Diluted
|
|
|
|
73,329,496
|
|
|
70,063,427
|
|
|
72,923,743
|
|
|
69,613,567
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
|
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|
INTERACTIVE BROKERS GROUP, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30,
2018
|
|
December 31,
2017
|
|
|
|
|
|
|
|
(in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
|
|
|
$
|
2,500
|
|
$
|
1,732
|
Cash - segregated for regulatory purposes
|
|
|
|
|
|
|
7,686
|
|
|
6,547
|
Securities - segregated for regulatory purposes
|
|
|
|
|
|
|
13,368
|
|
|
13,685
|
Securities borrowed
|
|
|
|
|
|
|
3,588
|
|
|
2,957
|
Securities purchased under agreements to resell
|
|
|
|
|
|
|
533
|
|
|
2,035
|
Financial instruments owned, at fair value
|
|
|
|
|
|
|
2,088
|
|
|
3,154
|
Receivables from customers, net of allowance for doubtful accounts
|
|
|
|
|
|
28,970
|
|
|
29,821
|
Receivables from brokers, dealers and clearing organizations
|
|
|
|
|
|
|
1,134
|
|
|
823
|
Other assets
|
|
|
|
|
|
|
436
|
|
|
408
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets
|
|
|
|
|
|
$
|
60,303
|
|
$
|
61,162
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
|
|
|
|
|
|
Short-term borrowings
|
|
|
|
|
|
$
|
193
|
|
$
|
15
|
Securities loaned
|
|
|
|
|
|
|
4,091
|
|
|
4,444
|
Securities sold under agreements to repurchase
|
|
|
|
|
|
|
-
|
|
|
1,316
|
Financial instruments sold but not yet purchased, at fair value
|
|
|
|
|
|
|
630
|
|
|
767
|
Other payables:
|
|
|
|
|
|
|
|
|
|
|
Customers
|
|
|
|
|
|
|
48,239
|
|
|
47,548
|
Brokers, dealers and clearing organizations
|
|
|
|
|
|
|
100
|
|
|
283
|
Other payables
|
|
|
|
|
|
|
350
|
|
|
356
|
|
|
|
|
|
|
|
|
48,689
|
|
|
48,187
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities
|
|
|
|
|
|
|
53,603
|
|
|
54,729
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity
|
|
|
|
|
|
|
|
|
|
|
Stockholders' equity
|
|
|
|
|
|
|
1,183
|
|
|
1,090
|
Noncontrolling interests
|
|
|
|
|
|
|
5,517
|
|
|
5,343
|
Total equity
|
|
|
|
|
|
|
6,700
|
|
|
6,433
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and equity
|
|
|
|
|
|
$
|
60,303
|
|
$
|
61,162
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30, 2018
|
|
|
December 31, 2017
|
Ownership of IBG LLC Membership Interests
|
Interests
|
|
|
%
|
|
|
Interests
|
|
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
IBG, Inc.
|
73,544,946
|
|
|
17.8%
|
|
|
71,479,604
|
|
|
17.4%
|
Noncontrolling interests (IBG Holdings LLC)
|
340,229,444
|
|
|
82.2%
|
|
|
340,229,444
|
|
|
82.6%
|
|
|
|
|
|
|
|
|
|
|
|
|
Total IBG LLC membership interests
|
413,774,390
|
|
|
100.0%
|
|
|
411,709,048
|
|
|
100.0%
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20180717005978/en/
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