Earnings Reports

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Interactive Brokers reported better than expected second quarter earnings after the close Tuesday as did its competitor Charles Schwab $SCHW earlier. $IBKR saw huge jumps in revenue from brokerage and interest from higher margin trading.

Interactive brokers

The increased volatilty and higher Fed Funds rate means higher commission and interest income.

Earnings

EPS of 58 cents on revenue of $445 million beating estimates of 53 cents a share on revenue of $437 million as volatity in the stock bull market continued to pick up.

Interactive Brokers Group, Inc. NASDAQ: $IBKR

Market Summary > After hours 64.90 +0.21 (0.32%)

Note: $IBKR Closed at $64.69 USD +2.00 (+3.19%) Jul 17, 2018 prior to the report largely on the back of $SCHW strong earnings report. (see link below)

Highlights

  • Electronic brokerage revenue rose 32.6% to $443 million.
  • Customer equity grew 29% to $134.7 billion
  • Customer debits increased 27% to $28.8 billion.
  • Accounts grew 27% to 542,000
  • Total daily average revenue trades rose 19% to 797,000.
  • Net interest income grew 45% as average customer credit and margin loan balances with benchmark interest rates increased from a year ago.
  • Commission revenue rose 16% on higher customer volumes in futures and options trading.

The brokers follow the earnings from the money center banks JPMorgan $JPM, Wells Fargo $WFC and PNC Financial $PNC which all announced big jumps in revenue.

See: Charles Schwab Earnings Surge With Record Trading Volumes and Revenue

Source: Interactive Brokers

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