Interactive Brokers Group, Inc. an online broker and market maker, reported its diluted earnings per share (EPS) on a comprehensive basis of $0.60 for the first quarter, while excluding other comprehensive income, Interactive Brokers reported diluted earnings per share of $0.51 for the Q1 2016, both much higher in comparison with Q1 2015 ($0.24, $0.22 resp.)
Net revenues reached $489 million, while income before income taxes was $337 million this quarter, what is a jump of 184% from net revenues of $172 million in Q1 2015, while loss before income taxes reached $111 million for the same period in 2015. Net revenues were 80% higher quarter-on-quarter compared to Q4 2015’s $271 million in net revenue.
As Interactive Brokers states, results for the quarter were positively impacted by strong growth in commissions and execution fees and net interest income, rising 11% and 37%, respectively, from the same period in 2015.
Moreover, the results for the Q1 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.
A negative impact causing the $121 million net loss from to the Swiss National Bank move in the value of the Swiss franc during the Q1 2015 has to be mentioned, causing several of our customers who held currency futures and spot positions to suffer losses in excess of their deposits with Interactive Brokers.
The Board of Directors of hte company 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.
As for the major numbers, which we should mention is the 68% Electronic Brokerage pretax profit margin for this quarter, rising from 18% in the year-ago quarter. Moreover, a 34% Market Making pretax profit margin in Q1 2016, declined from 40% in the year-ago quarter. As for the customer equity, it rose 15% from the Q1 2015 reaching $70.1 billion while customer debits decreased by 13% to $15.0 billion, while customer accounts increased 17% from the year-ago quarter to 345 thousand in total. Total DARTs hiked 15% from the Q1 2015 to 748 thousand and brokerage segment equity reached $3.7 billion. Total equity was $5.7 billion.
To read the full statement of Interactive Brokers, please click here.
