Interactive Brokers Group, Inc. (NASDAQ:IBKR) stock rose 2.76% (As on January 17, 11:15:50 AM UTC-4, Source: Google Finance) after the company posted mixed results for the fourth quarter of FY 23. Commission revenue increased 5% to $348 million. Customer trading volume was mixed across product types with options and futures contract volumes up 21% and 4%, respectively, while stock share volume was down 22%. Net interest income increased 29% to $730 million on higher benchmark interest rates, customer margin loans and customer credit balances. Other income decreased $31 million to $6 million. This decrease was mainly comprised of $20 million related to the currency diversification strategy and $8 million related to the investment in Tiger Brokers. Execution, clearing and distribution fees expenses increased 11% to $100 million, driven by higher customer trading volume in options and futures.
Moreover, Customer accounts increased 23% to 2.56 million. Customer equity increased 39% to $426.0 billion. Total DARTs increased 2% to 1.93 million. Cleared DARTs increased 2% to 1.73 million. Customer credits increased 10% to $104.5 billion. Customer margin loans increased 14% to $44.4 billion. The total assets ended the year 12% higher at $128 billion with growth driven by higher customer cash and margin loan balances from both new and existing customers. The segregated cash interest income rose 67% on a 4% increase in average balances, while margin loan interest rose by 50% on a 9% increase in average balances.
IBKR in the fourth quarter of FY 23 has reported the adjusted earnings per share of $1.52, missing the analysts’ estimates for the adjusted earnings per share of $1.54, according to the Zacks Consensus Estimate. The company had reported the adjusted revenue growth of 16.7 percent to $1.14 billion in the fourth quarter of FY 23, beating the analysts’ estimates for revenue of $1.12 billion. Pretax profit margin for the current quarter was 72% both as reported and as adjusted. For the year-ago quarter, reported pretax margin was 71% and 70% as adjusted. Total equity of $14.1 billion. The company has reported income before income taxes was $816 million for the current quarter and $831 million as adjusted. For the year-ago quarter, reported income before income taxes was $689 million and $671 million as adjusted.
Additionally, the company has declared a quarterly cash dividend of $0.10 per share. This dividend is payable on March 14, 2024, to shareholders of record as of March 1, 2024.