This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Interactive Brokers Group Announces 2012 Results

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 $0.92 for the year ended December 31, 2012, compared to diluted earnings per share on a comprehensive basis of $1.31 for 2011.

Reported results on a comprehensive basis reflect the GAAP convention adopted in 2011 that requires the reporting of currency translation results contained in Other Comprehensive Income as part of reportable earnings.

On a non-comprehensive basis, which excludes the effect of changes in the U.S. dollar value of the Company’s non-U.S. subsidiaries, the Company reported diluted earnings per share on net income of $0.89 for the year ended December 31, 2012, compared to diluted earnings per share on net income of $1.37 for 2011.

Net revenues were $1,131 million and income before income taxes was $527 million for the year, compared to net revenues of $1,358 million and income before income taxes of $741 million for 2011.

The Interactive Brokers Group, Inc. Board of Directors declared a quarterly cash dividend of $0.10 per share. This dividend is payable on March 14, 2013 to shareholders of record as of March 1, 2013.

Business Highlights
  • 47% pretax profit margin for 2012.
  • 51% Electronic Brokerage pretax profit margin for 2012.
  • 41% Market Making pretax profit margin for 2012.
  • Customer equity grew 31% from 2011 to $32.9 billion and customer accounts increased 11%.
  • Cleared DARTs decreased 6% from 2011 to 384,000.

Segment Overview

Electronic Brokerage

Electronic Brokerage segment income before income taxes decreased 8%, to $342 million, in 2012. Customer accounts grew 11% from the prior year and customer equity increased 31% during 2012. Commissions and execution fees decreased 10%, consistent with the subdued trading environment. Net interest income grew 9% from the prior year. Pretax profit margin was 51% in 2012, down from 54% in 2011. Total DARTs (1) for cleared and execution-only customers decreased 7% to 413,000 in 2012, compared to 444,000 during 2011. Cleared DARTs were 384,000 in 2012, 6% lower than in 2011.

Market Making

Market Making segment income before income taxes decreased 54%, to $189 million, in 2012. This decrease was driven by lower exchange volumes, lower actual-to-implied volatility and a swing in currency translation gains. In 2012, our currency diversification strategy negatively impacted the income statement by $39 million, compared to an $11 million gain in 2011. Including balance sheet effects, our currency strategy resulted in a slightly smaller loss than last year. Currency translation effects are reported as part of Trading Gains in the Market Making segment. Pretax profit margin decreased to 41% in 2012 from 59% in 2011. Market Making options contract volume decreased 9% in 2012.

1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $93.74 0.00%
FB $117.58 0.00%
GOOG $693.01 0.00%
TSLA $240.76 0.00%
YHOO $36.60 0.00%


Chart of I:DJI
DOW 17,773.64 -57.12 -0.32%
S&P 500 2,065.30 -10.51 -0.51%
NASDAQ 4,775.3580 -29.9330 -0.62%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs