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 2013 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 $0.67 for the year ended December 31, 2013, compared to diluted earnings per share on a comprehensive basis of $1.13 for 2012.

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 $0.73 for the year ended December 31, 2013, compared to diluted earnings per share of $0.89 for the same period in 2012.

Net revenues were $1,076 million and income before income taxes was $451 million for the year, compared to net revenues of $1,131 million and income before income taxes of $527 million for 2012.

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, 2014 to shareholders of record as of February 28, 2014.

Business Highlights
  • 42% pretax profit margin for 2013, or 48% without unusual item.
  • 48% Electronic Brokerage pretax profit margin for 2013, or 56% excluding unusual item.
  • 26% Market Making pretax profit margin for 2013.
  • Customer equity grew 39% from 2012 to $45.7 billion.
  • Customer accounts increased 14% in 2013 to 239,000.
  • Total DARTs increased 18% from 2012 to 486,000.
  • Brokerage segment equity was $2.5 billion. Total equity was $5.1 billion.

Segment Overview

Electronic Brokerage

Electronic Brokerage segment income before income taxes grew 15%, to $391 million, in 2013. Customer accounts grew 14% from the prior year and customer equity increased 39% during 2013 (1). Commissions and execution fees increased 22%. Net interest income grew 24% from the prior year, to $228 million. Pretax profit margin was 48% in 2013, down from 51% in 2012. Excluding $64.3 million in expense related to an unusual item (see below), pretax profit margin was 56% in 2013.

Total DARTs (2), for cleared and execution-only customers, increased 18% to 486,000 in 2013, compared to 413,000 during 2012. Cleared DARTs were 441,000 in 2013, 15% higher than in 2012.

Market Making

Market Making segment income before income taxes decreased 62%, to $72 million, in 2013. This decrease was driven by a market making environment with persistent low volatility and low actual-to-implied volatility, and by a greater loss from holding our equity in a basket of currencies, as measured in U.S. dollars. In 2013, our currency diversification strategy resulted in a reported loss of $89 million, compared to a $39 million loss in 2012. Currency translation effects are reported as part of Trading Gains in the Market Making segment. Including balance sheet effects, our currency strategy resulted in a loss of $116 million in 2013, as compared to a loss of $19 million in the prior year. Pretax profit margin decreased to 26% in 2013 from 41% in 2012. Market Making options contract volume decreased 12% in 2013.

1 of 4

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 $95.18 1.64%
FB $117.43 -0.96%
GOOG $692.36 -0.84%
TSLA $232.32 -3.92%
YHOO $36.01 -1.42%


Chart of I:DJI
DOW 17,750.91 -140.25 -0.78%
S&P 500 2,063.37 -18.06 -0.87%
NASDAQ 4,763.2240 -54.37 -1.13%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs