Interactive Brokers Group, Inc. (NASDAQ:IBKR) Posts Mixed Results

Interactive Brokers Group, Inc. (NASDAQ:IBKR) stock rose 0.37% (As on Jan 19, 11:24:55 AM UTC-4, Source: Google Finance) after the company posted mixed results for the fourth quarter of FY 21. The company has reported income before income taxes was $373 million for the current quarter and $453 million as adjusted. For the year-ago quarter, reported income before income taxes was $392 million and $375 million as adjusted. Commission revenue increased $32 million, or 11%, from the year-ago quarter on higher customer options and futures trading volumes and higher average per share commission in stocks. Net interest income increased $70 million, or 31%, from the year-ago quarter on higher margin loan balances and strong securities lending activity. Other income decreased $104 million from the year-ago quarter. This decrease was mainly comprised of $89 million related to the strategic investment in Up Fintech Holding Limited (“Tiger Brokers”) and $10 million related to the currency diversification strategy. Reported pretax profit margin was 62% for the current quarter and 66% as adjusted. For the year-ago quarter, reported pretax margin was 65% and 64% as adjusted. Total equity of $10.2 billion.

Moreover, Customer accounts increased 56% from the year-ago quarter to 1.68 million. The customer equity grew 30% from the year-ago quarter to $373.8 billion. Total DARTs increased 16% from the year-ago quarter to 2.44 million. Cleared DARTs increased 16% from the year-ago quarter to 2.16 million. Customer credits increased 12% from the year-ago quarter to $87.1 billion and the customer margin loans increased 40% from the year-ago quarter to $54.6 billion.

IBKR in the fourth quarter of FY 21  has reported the adjusted earnings per share of 83 cents, beating the analysts’ estimates for the adjusted earnings per share of 82 cents, according to Zacks Investment Research. The company had reported the adjusted revenue growth of 35.9 percent to $603 million in the fourth quarter of FY 21, missing the analysts’ estimates for revenue by 7.23%.

Additionally, in this quarter, the currency diversification strategy decreased the comprehensive earnings by $25 million, as the U.S. dollar value of the GLOBAL decreased by approximately 0.22%. The effects of the currency diversification strategy are reported as components of (1) Other Income (loss of $23 million) and (2) Other Comprehensive Income (loss of $2 million).

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