Interactive Brokers Group Announces 2Q2019 Results

Income Before Taxes of $225 Million on $413 Million in Net Revenues, Earnings Per Share on Net Income of $0.43 and Earnings Per Share on Comprehensive Income of $0.46.

Declares Quarterly Dividend of $0.10 Per Share.

GREENWICH, Conn.--()--Interactive Brokers Group, Inc. (IEX: IBKR), an automated global electronic broker, reported diluted earnings per share on net income of $0.43 for the quarter ended June 30, 2019 compared to $0.57 for the same period in 2018, and diluted earnings per share on comprehensive income of $0.46 for the quarter, compared to $0.39 for the same period in 2018.

Net revenues were $413 million and income before income taxes was $225 million this quarter, compared to net revenues of $445 million and income before income taxes of $271 million for the same period in 2018. The results for the quarter were positively impacted by strong growth in net interest income, which increased $34 million, or 15%, from the year-ago quarter; partially counterbalanced by lower commissions revenue, which decreased $7 million, or 4%, from the year-ago quarter.

In addition, the results for the quarter also include a $6 million loss on our currency diversification strategy, compared to a $21 million loss in the same period in 2018; and a $74 million mark-to-market loss on our investment in Tiger Brokers.

The Interactive Brokers Group, Inc. Board of Directors declared a quarterly cash dividend of $0.10 per share. This dividend is payable on September 13, 2019 to shareholders of record as of August 30, 2019.

Business Highlights

  • 54% pretax profit margin for this quarter, down from 61% in the year-ago quarter.
  • 64% Electronic Brokerage pretax profit margin for this quarter, unchanged from the year-ago quarter.
  • Customer equity grew 14% from the year-ago quarter to $153.1 billion and customer debits decreased 11% to $25.7 billion.
  • Customer accounts increased 19% from the year-ago quarter to 645 thousand.
  • Total DARTs1 increased 4% from the year-ago quarter to 828 thousand.
  • Brokerage segment equity was $6.4 billion. Total equity was $7.6 billion.

____________________

1 Daily average revenue trades (DARTs) are based on customer orders.

Segment Overview

Electronic Brokerage

Electronic brokerage segment income before income taxes increased 7% to $302 million in the quarter ended June 30, 2019, compared to the same period last year. Net revenues increased 7% to $473 million on higher net interest and other income, partially offset by lower commissions revenue.

Commissions revenue decreased 4% from the year-ago quarter on lower customer trading volume across most product types, which reflected smaller average trade sizes. Net interest income increased 16% as average customer credit balances and benchmark interest rates increased from the year-ago quarter. Other income increased 3% on higher net mark-to-market gains on our U.S. government securities portfolio and higher fees earned from our Insured Bank Deposit Sweep Program. Pretax profit margin was 64% for the quarter ended June 30, 2019, unchanged from the same period last year.

Customer accounts grew 19% to 645 thousand and customer equity increased 14% from the year-ago quarter to $153.1 billion. Total DARTs for cleared and execution-only customers increased 4% to 828 thousand from the year-ago quarter. Cleared DARTs were 740 thousand, slightly higher than the same period last year.

Market Making

Market making segment income before income taxes increased 22% to $11 million in the quarter ended June 30, 2019, compared to the same period last year, primarily due to lower operating costs in the remaining operations.

Corporate

For the quarter ended June 30, 2019, we recognized a mark-to-market loss of approximately $74 million in our strategic investment in Up Fintech Holding Limited (“Tiger Brokers”), compared to a mark-to-market gain of $103 million recognized in the first quarter of 2019 after its initial public offering on March 20, 2019. As a result, we recognized a net gain of $29 million for the six months ended June 30, 2019.

Effects of Foreign Currency Diversification

In connection with our currency diversification strategy, we have determined to base our net worth in GLOBALs, a basket of 14 major currencies in which we hold our equity. In this quarter, our currency diversification strategy increased our comprehensive earnings by $10 million, as the U.S. dollar value of the GLOBAL increased by approximately 0.24%. The effects of the currency diversification strategy are reported as components of (1) Other Income in the corporate segment and (2) Other Comprehensive Income (“OCI”).

Regulatory Matters

The Company is subject to regulatory oversight and examination by numerous governmental and self-regulatory authorities. It is currently providing information to certain of such authorities, including FINRA, the SEC, the CFTC and the United States Department of Justice, and cooperating with those authorities. The Company believes that the regulators are focused on compliance practices, including anti money laundering and Bank Secrecy Act practices. The Company periodically reviews these practices to make them more robust and to keep pace with changing regulatory standards, and the Company has been enhancing and augmenting its procedures and personnel in these areas over the past several years. While the outcome of the examinations and inquiries currently in progress cannot be predicted, the Company does not believe that they are likely to have a materially adverse effect on the Company’s financial results.

Conference Call Information:

Interactive Brokers Group, Inc. will hold a conference call with investors today, July 16, 2019, at 4:30 p.m. ET to discuss its quarterly results. Investors who would like to listen to the conference call live should dial 877-324-1965 (U.S. domestic) and 631-291-4512 (international). The number should be dialed approximately ten minutes prior to the start of the conference call. Ask for the “Interactive Brokers Conference Call.”

The conference call will also be accessible simultaneously, and through replays, as an audio webcast through the Investor Relations section of the Interactive Brokers web site, www.interactivebrokers.com/ir.

About Interactive Brokers Group, Inc.:

Interactive Brokers Group affiliates provide automated trade execution and custody of securities, commodities and foreign exchange around the clock on over 125 markets in numerous countries and currencies, from a single IBKR Integrated Investment Account to customers worldwide. We service individual investors, hedge funds, proprietary trading groups, financial advisors and introducing brokers. Our four decades of focus on technology and automation has enabled us to equip our customers with a uniquely sophisticated platform to manage their investment portfolios at the lowest cost according to Barron's Best Online Brokers review, February 25, 2019. We strive to provide our customers with advantageous execution prices and trading, risk and portfolio management tools, research facilities and investment products, all at low or no cost, positioning them to achieve superior returns on investments.

Cautionary Note Regarding Forward-Looking Statements:

The foregoing information contains certain forward-looking statements that reflect the Company’s current views with respect to certain current and future events and financial performance. These forward-looking statements are and will be, as the case may be, subject to many risks, uncertainties and factors relating to the Company’s operations and business environment which may cause the Company’s actual results to be materially different from any future results, expressed or implied, in these forward-looking statements. Any forward-looking statements in this release are based upon information available to the Company on the date of this release. The Company does not undertake to publicly update or revise its forward-looking statements even if experience or future changes make it clear that any statements expressed or implied therein will not be realized. Additional information on risk factors that could potentially affect the Company’s financial results may be found in the Company’s filings with the Securities and Exchange Commission.

INTERACTIVE BROKERS GROUP, INC. AND SUBSIDIARIES
OPERATING DATA

TRADE VOLUMES:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(in 000's, except %)

 

 

 

 

 

 

 

Brokerage

 

 

 

 

 

 

 

 

 

 

Market

 

 

 

Brokerage

 

 

 

Non

 

 

 

 

 

 

 

Avg. Trades

 

 

Making

 

%

 

Cleared

 

%

 

Cleared

 

%

 

Total

 

%

 

per U.S.

Period

 

Trades

 

Change

 

Trades

 

Change

 

Trades

 

Change

 

Trades

 

Change

 

Trading Day

2016

 

                   64,038

 

 

 

         259,932

 

 

 

           16,515

 

 

 

         340,485

 

 

 

                  1,354

2017

 

                   31,282

 

 (51%)

 

         265,501

 

2%

 

           14,835

 

 (10%)

 

         311,618

 

 (8%)

 

                  1,246

2018

 

                   18,663

 

 (40%)

 

         328,099

 

24%

 

           21,880

 

47%

 

         368,642

 

18%

 

                  1,478

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2Q2018

 

                     4,575

 

 

 

           78,026

 

 

 

             4,641

 

 

 

           87,242

 

 

 

                  1,363

2Q2019

 

                     3,853

 

 (16%)

 

           74,269

 

 (5%)

 

             6,827

 

47%

 

           84,949

 

 (3%)

 

                  1,348

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1Q2019

 

                     4,342

 

 

 

           75,935

 

 

 

             6,669

 

 

 

           86,946

 

 

 

                  1,425

2Q2019

 

                     3,853

 

 (11%)

 

           74,269

 

 (2%)

 

             6,827

 

2%

 

           84,949

 

 (2%)

 

                  1,348

CONTRACT AND SHARE VOLUMES:

 

 

 

 

 

 

 

 

 

 

(in 000's, except %)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

TOTAL

 

Options

 

%

 

Futures1

 

%

 

Stocks

 

%

 

Period

 

(contracts)

 

Change

 

(contracts)

Change

 

(shares)

 

Change

 

2016

 

         572,834

 

 

 

         143,287

 

 

 

         155,439,227

 

 

 

2017

 

         395,885

 

 (31%)

 

         124,123

 

 (13%)

 

         220,247,921

 

42%

 

2018

 

         408,406

 

3%

 

         151,762

 

22%

 

         210,257,186

 

 (5%)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2Q2018

 

           93,253

 

 

 

           36,693

 

 

 

           51,370,386

 

 

 

2Q2019

 

           96,007

 

3%

 

           32,424

 

 (12%)

 

           42,995,205

 

 (16%)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1Q2019

 

           90,242

 

 

 

           31,142

 

 

 

           51,258,862

 

 

 

2Q2019

 

           96,007

 

6%

 

           32,424

 

4%

 

           42,995,205

 

 (16%)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

MARKET MAKING

 

Options

 

%

 

Futures1

 

%

 

Stocks

 

%

 

Period

 

(contracts)

 

Change

 

(contracts)

 

Change

 

(shares)

 

Change

 

2016

 

         307,377

 

 

 

           14,205

 

 

 

           13,082,887

 

 

 

2017

 

         102,025

 

 (67%)

 

             5,696

 

 (60%)

 

             7,139,622

 

 (45%)

 

2018

 

           49,554

 

 (51%)

 

             3,277

 

 (42%)

 

           11,347,811

 

59%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2Q2018

 

           11,813

 

 

 

                756

 

 

 

             2,442,203

 

 

 

2Q2019

 

           10,008

 

 (15%)

 

                621

 

 (18%)

 

             2,598,531

 

6%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1Q2019

 

           11,638

 

 

 

                640

 

 

 

             2,842,219

 

 

 

2Q2019

 

           10,008

 

 (14%)

 

                621

 

 (3%)

 

             2,598,531

 

 (9%)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

BROKERAGE TOTAL

Options

 

%

 

Futures1

 

%

 

Stocks

 

%

 

Period

 

(contracts)

 

Change

 

(contracts)

 

Change

 

(shares)

 

Change

 

2016

 

         265,457

 

 

 

         129,082

 

 

 

         142,356,340

 

 

 

2017

 

         293,860

 

11%

 

         118,427

 

 (8%)

 

         213,108,299

 

50%

 

2018

 

         358,852

 

22%

 

         148,485

 

25%

 

         198,909,375

 

 (7%)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2Q2018

 

           81,440

 

 

 

           35,937

 

 

 

           48,928,183

 

 

 

2Q2019

 

           85,999

 

6%

 

           31,803

 

 (12%)

 

           40,396,674

 

 (17%)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1Q2019

 

           78,604

 

 

 

           30,502

 

 

 

           48,416,643

 

 

 

2Q2019

 

           85,999

 

9%

 

           31,803

 

4%

 

           40,396,674

 

 (17%)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1 Includes options on futures.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

BROKERAGE CLEARED

Options

 

%

 

Futures1

 

%

 

Stocks

 

%

 

Period

 

(contracts)

 

Change

 

(contracts)

 

Change

 

(shares)

 

Change

 

2016

 

         227,413

 

 

 

         128,021

 

 

 

         138,523,932

 

 

 

2017

 

         253,304

 

11%

 

         116,858

 

 (9%)

 

         209,435,662

 

51%

 

2018

 

         313,795

 

24%

 

         146,806

 

26%

 

         194,012,882

 

 (7%)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2Q2018

 

           71,873

 

 

 

           35,679

 

 

 

           47,840,126

 

 

 

2Q2019

 

           71,524

 

0%

 

           31,564

 

 (12%)

 

           39,086,399

 

 (18%)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1Q2019

 

           68,237

 

 

 

           30,246

 

 

 

           47,082,741

 

 

 

2Q2019

 

           71,524

 

5%

 

           31,564

 

4%

 

           39,086,399

 

 (17%)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1 Includes options on futures.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

BROKERAGE STATISTICS

 

 

 

 

 

 

 

 

 

(in 000's, except % and where noted)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year over Year

 

 

2Q2019

 

 

2Q2018

 

% Change

 

   Total Accounts

 

 

                     645

 

 

                     542

 

19%

 

   Customer Equity (in billions)1

 

$

153.1

 

$

134.7

 

14%

 

 

 

 

 

 

 

 

 

 

 

   Cleared DARTs

 

 

                     740

 

 

                     739

 

0%

 

   Total Customer DARTs

 

 

                     828

 

 

                     797

 

4%

 

 

 

 

 

 

 

 

 

 

 

Cleared Customers (in $'s, except DART per account)

 

 

 

 

 

 

 

 

 

   Commission per DART

 

$

3.68

 

$

3.86

 

 (5%)

 

   DART per Avg. Account (Annualized)

 

 

                     293

 

 

                     350

 

 (16%)

 

   Net Revenue per Avg. Account (Annualized)

 

$

2,863

 

$

3,190

 

 (10%)

 

 

 

 

 

 

 

 

 

 

 

Consecutive Quarters

 

 

2Q2019

 

 

1Q2019

 

% Change

 

   Total Accounts

 

 

                     645

 

 

                     623

 

4%

 

   Customer Equity (in billions)1

 

$

153.1

 

$

147.6

 

4%

 

 

 

 

 

 

 

 

 

 

 

   Cleared DARTs

 

 

                     740

 

 

                     757

 

 (2%)

 

   Total Customer DARTs

 

 

                     828

 

 

                     848

 

 (2%)

 

 

 

 

 

 

 

 

 

 

 

Cleared Customers (in $'s, except DART per account)

 

 

 

 

 

 

 

 

 

   Commission per DART

 

$

3.68

 

$

3.68

 

0%

 

   DART per Avg. Account (Annualized)

 

 

                     293

 

 

                     311

 

 (6%)

 

   Net Revenue per Avg. Account (Annualized)

 

$

2,863

 

$

2,961

 

 (3%)

 

 

 

 

 

 

 

 

 

 

 

1 Excludes non-customers.

 

 

 

 

 

 

 

 

 

INTERACTIVE BROKERS GROUP, INC. AND SUBSIDIARIES
NET INTEREST MARGIN 
(UNAUDITED)

        Three Months   Six Months  
        Ended June 30,   Ended June 30,  
       

2019

 

2018

 

2019

 

2018

                             
        (in millions)
Average interest-earning assets                          
  Segregated cash and securities  

$

                  27,313

 

$

                  19,512

 

$

                  26,452

 

$

                  20,248

 
  Customer margin loans    

                  26,184

   

                  29,839

   

                  25,929

   

                  29,658

 
  Securities borrowed    

                    3,991

   

                    3,327

   

                    3,840

   

                    3,202

 
  Other interest-earning assets    

                    5,105

   

                    4,020

   

                    5,095

   

                    4,079

 
  FDIC sweeps1    

                    2,012

   

                    1,186

   

                    1,924

   

                       973

 
       

$

                  64,605

 

$

                  57,884

 

$

                  63,240

 

$

                  58,160

 
                               
Average interest-bearing liabilities                          
  Customer credit balances  

$

                  51,777

 

$

                  47,390

 

$

                  50,838

 

$

                  47,657

 
  Securities loaned    

                    4,131

   

                    4,013

   

                    3,913

   

                    4,178

 
       

$

                  55,908

 

$

                  51,403

 

$

                  54,751

 

$

                  51,835

 
                               
Net interest income                          
  Segregated cash and securities, net2  

$

                       145

 

$

                         71

 

$

                       281

 

$

                       142

 
  Customer margin loans3    

                       188

   

                       164

   

                       362

   

                       303

 
  Securities borrowed and loaned, net4    

                         48

   

                         53

   

                       100

   

                       112

 
  Customer credit balances, net3/4    

                     (147)

   

                       (80)

   

                     (284)

   

                     (141)

 
  Other net interest income1/2/5    

                         33

   

                         24

   

                         63

   

                         38

 
    Net interest income5  

$

                       267

 

$

                       232

 

$

                       522

 

$

                       454

 
                               
Net interest margin ("NIM")    

1.66%

   

1.61%

   

1.66%

   

1.57%

 
                               
Annualized yields                          
  Segregated cash and securities    

2.13%

   

1.46%

   

2.14%

   

1.41%

 
  Customer margin loans    

2.88%

   

2.20%

   

2.82%

   

2.06%

 
  Customer credit balances    

1.14%

   

0.68%

   

1.13%

   

0.60%

 
 

1

 

Represents the average amount of customer cash swept into FDIC-insured banks as part of our Insured Bank Deposit Sweep Program. This item is not
recorded in the Company's consolidated statements of financial condition. Income derived from program deposits is reported in other net interest income in the table
above.

 

 

 

2

 

During the quarter ended September 30, 2018, we reclassified certain components of net interest income related to investments in U.S. Treasury notes
and reverse repurchase agreements and as such, prior period amounts have been adjusted to conform to the current period presentation. For the three
and six months ended June 30, 2018, $4 million and $7 million have been reclassified from net interest income on "Segregated cash and securities, net"
to "Other net interest income, net", respectively.

 

 

 

3

 

Interest income and interest expense on customer margin loans and customer credit balances, respectively, are calculated on daily cash balances within
each customer’s account on a net basis, which may result in an offset of balances across multiple account segments (e.g., between securities and commodities segments).   

 

 

 

4

 

During the quarter ended December 31, 2018, we reclassified components of net interest income related to interest paid on short sale proceeds and as
such, prior period amounts have been adjusted to conform to the current period presentation. For the three and six months ended June 30, 2018, ($17)
million and ($29) million have been reclassified from net interest income on “Securities borrowed and loaned, net” to “Customer credit balances, net”, respectively.   

 

 

 

5

 

Includes income from financial instruments which has the same characteristics as interest, but is reported in other income in the Company’s consolidated
statements of comprehensive income, of $8 million and $7 million for the three months ended June 30, 2019 and 2018, and $17 million and $12 million for
the six months ended June 30, 2019 and 2018, respectively.

INTERACTIVE BROKERS GROUP, INC. AND SUBSIDIARIES
SEGMENT FINANCIAL INFORMATION
(UNAUDITED)

   

 

   

 

   

 

   

 

 
      Three Months   Six Months
      Ended June 30,   Ended June 30,
     

2019

 

2018

 

2019

 

2018

      (in millions)
     

 

   

 

   

 

   

 

 
Electronic Brokerage Net revenues  

$

473

 

$

443

 

$

929

 

$

908

  Non-interest expenses  

 

171

 

160

 

 

377

 

 

334

     

 

 

 

 

  Income before income taxes  

$

302

$

283

 

$

552

 

$

574

     

 

 

 

 

 

  Pre-tax profit margin  

 

64%

 

 

64%

 

 

59%

 

 

63%

     

 

   

 

   

 

   

 

 
Market Making Net revenues  

$

20

 

$

22

 

$

35

 

$

43

  Non-interest expenses  

 

9

 

13

 

 

18

 

 

25

     

 

 

 

 

 

 

  Income before income taxes  

$

11

$

9

 

$

17

 

$

18

     

 

 

 

 

 

  Pre-tax profit margin  

 

55%

 

 

41%

 

 

49%

 

 

42%

     

 

   

 

   

 

   

 

 
Corporate 1 Net revenues  

$

(80)

 

$

(20)

 

$

                         7

 

$

21

  Non-interest expenses  

 

                         8

 

                         1

 

 

                       12

 

 

                         2

     

 

 

 

 

 

 

  Income (loss) before income taxes  

$

(88)

$

(21)

 

$

(5)

 

$

19

     

 

 

 

 

 

     

 

   

 

   

 

   

 

 
Total Net revenues  

$

413

 

$

445

 

$

971

 

$

972

  Non-interest expenses  

 

188

 

174

 

 

407

 

 

361

     

 

 

 

 

 

 

  Income before income taxes  

$

225

$

271

 

$

564

 

$

611

     

 

   

 

   

 

   

 

 
  Pre-tax profit margin  

 

54%

 

 

61%

 

 

58%

 

 

63%

     

 

   

 

   

 

   

 

 

1

 

Corporate includes corporate related activities as well as inter-segment eliminations and gains and losses on positions held as part of our overall currency diversification strategy.

INTERACTIVE BROKERS GROUP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(UNAUDITED)

        Three Months   Six Months
        Ended June 30,   Ended June 30,
       

2019

 

2018

 

2019

 

2018

       

 

(in millions, except share and per share data)
       

 

   

 

   

 

   

 

 
Revenues:  

 

   

 

   

 

   

 

 
  Commissions  

$

178

 

$

185

 

$

351

 

$

405

  Interest income  

 

432

 

 

333

 

 

840

 

 

644

  Trading gains  

 

6

 

 

12

 

 

13

 

 

25

  Other income (loss)  

 

(30)

 

 

23

 

 

102

 

 

100

       

 

   

 

   

 

   

 

 
    Total revenues  

 

586

 

 

553

 

 

1,306

 

 

1,174

       

 

   

 

   

 

   

 

 
  Interest expense  

 

173

 

 

108

 

 

335

 

 

202

       

 

   

 

   

 

   

 

 
    Total net revenues   

 

413

 

 

445

 

 

971

 

 

972

       

 

   

 

   

 

   

 

 
Non-interest expenses:  

 

   

 

   

 

   

 

 
  Execution, clearing and distribution fees  

 

63

 

 

66

 

 

124

 

 

139

  Employee compensation and benefits  

 

75

 

 

68

 

 

146

 

 

138

  Occupancy, depreciation and amortization  

 

14

 

 

11

 

 

28

 

 

23

  Communications  

 

6

 

 

7

 

 

12

 

 

13

  General and administrative   

 

26

 

 

22

 

 

50

 

 

45

  Customer bad debt  

 

                         4

 

 

                         -

 

 

47

 

 

3

       

 

   

 

   

 

   

 

 
    Total non-interest expenses   

 

188

 

 

174

 

 

407

 

 

361

       

 

   

 

   

 

   

 

 
Income before income taxes  

 

225

 

 

271

 

 

564

 

 

611

       

 

   

 

   

 

   

 

 
Income tax expense  

 

15

 

 

13

 

 

30

 

 

34

       

 

   

 

   

 

   

 

 
Net income  

 

210

 

 

258

 

 

534

 

 

577

       

 

   

 

   

 

   

 

 
Net income attributable to noncontrolling interests  

 

178

 

 

217

 

 

453

 

 

490

       

 

   

 

   

 

   

 

 
Net income available for common stockholders  

$

32

 

$

41

 

$

81

 

$

87

       

 

   

 

   

 

   

 

 
Earnings per share:  

 

   

 

   

 

   

 

 
  Basic   

$

0.43

 

$

0.57

 

$

1.08

 

$

1.21

  Diluted  

$

0.43

 

$

0.57

 

$

1.07

 

$

1.20

       

 

   

 

   

 

   

 

 
Weighted average common shares outstanding:  

 

   

 

   

 

   

 

 
  Basic   

 

75,868,349

 

 

72,476,729

 

 

75,486,825

 

 

71,979,104

  Diluted  

 

76,594,934

 

 

73,329,496

 

 

76,288,342

 

 

72,923,744

       

 

   

 

   

 

   

 

 
Comprehensive income:  

 

   

 

   

 

   

 

 
  Net income available for common stockholders  

$

32

 

$

41

 

$

81

 

$

87

  Other comprehensive income:  

 

   

 

   

 

   

 

 
    Cumulative translation adjustment, before income taxes  

 

                         4

 

 

                     (14)

 

 

3

 

 

(13)

    Income taxes related to items of other comprehensive income  

 

                         -

 

 

                       (1)

 

 

                         -

 

 

                       (1)

  Other comprehensive income (loss), net of tax  

 

                         4

 

 

                     (13)

 

 

3

 

 

(12)

Comprehensive income available for common stockholders  

$

36

 

$

28

 

$

84

 

$

75

       

 

   

 

   

 

   

 

 
Comprehensive income attributable to noncontrolling interests:  

 

   

 

   

 

   

 

 
Net income attributable to noncontrolling interests  

$

178

 

$

217

 

$

453

 

$

490

Other comprehensive income - cumulative translation adjustment  

 

12

 

 

(65)

 

 

11

 

 

(58)

Comprehensive income attributable to noncontrolling interests  

$

190

 

$

152

 

$

464

 

$

432

INTERACTIVE BROKERS GROUP, INC. AND SUBSIDIARIES
EARNINGS PER SHARE ON COMPREHENSIVE INCOME
(UNAUDITED)

                       
  Three Months   Six Months
  Ended June 30,   Ended June 30,
 

2019

 

2018

 

2019

 

2018

    (in millions, except share and per share data)
                       
Comprehensive income available for common stockholders  

$

36

 

$

28

 

$

84

 

$

75

                       
Comprehensive earnings per share:                        
Basic  

$

0.47

 

$

0.39

 

$

1.11

 

$

1.05

Diluted  

$

0.46

 

$

0.39

 

$

1.10

$

1.03

                       
Weighted average common shares outstanding:                        
Basic    

75,868,349

   

72,476,729

   

75,486,825

   

71,979,104

Diluted    

76,594,934

   

73,329,496

   

76,288,342

   

72,923,744

INTERACTIVE BROKERS GROUP, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(UNAUDITED)     

       

 

   

 

 
        June 30,
2019
  December 31,
2018
        (in millions)
       

 

   

 

 
Assets      

 

   

 

 
Cash and cash equivalents      

$

3,162

 

$

2,597

Cash - segregated for regulatory purposes      

 

                 8,819

 

 

                 7,503

Securities - segregated for regulatory purposes      

 

               20,273

 

 

               15,595

Securities borrowed      

 

                 4,028

 

 

                 3,331

Securities purchased under agreements to resell      

 

                 1,302

 

 

                 1,242

Financial instruments owned, at fair value      

 

                 1,192

 

 

                 2,119

Receivables from customers, net of allowance for doubtful accounts      

 

               25,904

 

 

               27,017

Receivables from brokers, dealers and clearing organizations      

 

                    685

 

 

                    706

Other assets      

 

                    669

 

 

                    437

       

 

   

 

 
Total assets      

$

66,034

 

$

60,547

       

 

   

 

 
Liabilities and equity      

 

   

 

 
       

 

   

 

 
Liabilities      

 

   

 

 
Short-term borrowings      

$

15

 

$

17

Securities loaned      

 

                 4,101

 

 

                 4,037

Financial instruments sold but not yet purchased, at fair value      

 

                    357

 

 

                    681

Other payables:      

 

   

 

 
Customers      

 

               53,054

 

 

               47,993

Brokers, dealers and clearing organizations      

 

                    385

 

 

                    298

Other payables      

 

                    502

 

 

                    365

       

 

               53,941

 

 

               48,656

       

 

   

 

 
Total liabilities      

 

               58,414

 

 

               53,391

       

 

   

 

 
Equity      

 

   

 

 
Stockholders' equity      

 

                 1,380

 

 

                 1,282

Noncontrolling interests      

 

                 6,240

 

 

                 5,874

Total equity      

 

                 7,620

 

 

                 7,156

       

 

   

 

 
Total liabilities and equity      

$

66,034

 

$

60,547

       

 

   

 

 
  June 30, 2019

 

December 31, 2018
Ownership of IBG LLC Membership Interests Interests    %

 

Interests  

 

 %
       

 

   

 

 
IBG, Inc.

76,727,339

 

18.5%

 

75,100,955

 

 

18.1%

Noncontrolling interests (IBG Holdings LLC)

338,691,717

 

81.5%

 

338,691,717

 

 

81.9%

       

 

   

 

 
Total IBG LLC membership interests

415,419,056

 

100.0%

 

413,792,672

 

 

100.0%

 

Contacts

For Interactive Brokers Group, Inc.
Investors: Nancy Stuebe, 203-618-4070
or
Media: Kalen Holliday, 203-913-1369

 

Contacts

For Interactive Brokers Group, Inc.
Investors: Nancy Stuebe, 203-618-4070
or
Media: Kalen Holliday, 203-913-1369