Interactive Brokers swings back to profit in Q2 2015

Interactive Brokers Group, Inc. (NASDAQ:IBKR), one of the leading US Forex brokers, last night announced its financial metrics for the second quarter of 2015.

Investors in the company were probably happy to see the company return to profitability in the April-June 2015 period, following a rather dismal first quarter this year, when the company posted a loss of $111 million. The best piece of news for shareholders is, of course, that there will be a dividend for this quarter – not very generous, but still…there is one (of $0.10 per share).

Let’s check out the highlights of Interactive Brokers’ financial performance in Q2 2015:

  • Income before tax for Q2 2015 was $240 million, compared with a loss of $111 million incurred in Q1 2015 and up 38% from $174 million recorded in Q2 2014.
  • Net revenues rose 125% from Q1 2015 and 25% from Q2 2014 to $387 million in Q2 2015.
  • Diluted earnings per share on a comprehensive basis reached $0.44 in Q2 2015, compared to diluted earnings per share on a comprehensive basis of $0.29 in Q2 2014.
  • The Board of Directors declared a quarterly cash dividend of $0.10 per share. This dividend is payable on September 14, 2015 to shareholders of record as of September 1, 2015.


Performance across segments

Electronic Brokerage

  • Pre-tax income increased 42% to $188 million in Q2 2015 from Q2 2014, on the back of higher commissions revenue and net interest income.
  • Customer accounts rose 18% to 310,000 and customer equity increased 22% to $66 billion compared to Q2 2014.
  • Total DARTs, for cleared and execution-only customers, increased 16% to 616,000 when compared to Q2 2014.
  • Cleared DARTs were 565,000, 17% higher than the same period last year.

Market Making

  • Pre-tax income rose 15% from Q2 2014 to $30 million on the back of slightly improved volatility.
  • Pretax profit margin increased to 42% in the current quarter from 37% in same period last year.

To view the official announcement, click here.


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