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Interactive Brokers Group, Inc. (NASDAQ GS: IBKR) an automated global electronic broker and market maker, today reported diluted earnings per share on a comprehensive basis of $0.60 for the quarter ended March 31, 2016, compared to diluted earnings per share on a comprehensive basis of ($0.24) for the same period in 2015.
Excluding other comprehensive income, the Company reported diluted earnings per share of $0.51 for the quarter ended March 31, 2016, compared to diluted earnings per share of ($0.22) for same period in 2015.
Net revenues were $489 million and income before income taxes was $337 million this quarter, compared to net revenues of $172 million (+184%) and loss before income taxes of $111 million for the same period in 2015. Net revenues were 80% higher QoQ from Q4 2015’s $271 million in net revenue.
The results for the quarter were positively impacted by strong growth in commissions and execution fees and net interest income, which increased 11% and 37%, respectively, from the same period in 2015.
In addition, the results for the quarter include a $123 million gain on our currency diversification strategy due to the weakening of the U.S. dollar against other major currencies, compared to a loss of $197 million recognized in the same period in 2015.
The results for the first quarter of 2015 were also negatively impacted by a $121 million net loss due to the sudden, large move in the value of the Swiss franc, causing several of our customers who held currency futures and spot positions to suffer losses in excess of their deposits with us.
The Interactive Brokers Group, Inc. Board of Directors declared a quarterly cash dividend of $0.10 per share. This dividend is payable on June 14, 2016 to shareholders of record as of June 1, 2016.
- 68% Electronic Brokerage pretax profit margin for this quarter, up from 18% in the year-ago quarter.
- 34% Market Making pretax profit margin for this quarter, down from 40% in the year-ago quarter.
- Customer equity grew 15% from the year-ago quarter to $70.1 billion while customer debits decreased by 13% to $15.0 billion.
- Customer accounts increased 17% from the year-ago quarter to 345 thousand.
- Total DARTs increased 15% from the year-ago quarter to 748 thousand.
- Brokerage segment equity was $3.7 billion. Total equity was $5.7 billion.
Performance of Interactive Brokers Retail Customer Forex Accounts:
Performance remains consistent with a large number of profitable FX trading accounts at the brokerage…
Number of Accounts
Percentage of Profitable Accounts
Percentage of Unprofitable Accounts
For more details on Interactive Brokers Q1 2016 results view the official release here.