Interactive Brokers : Q1 2024 Press Release

INTERACTIVE BROKERS GROUP ANNOUNCES 1Q2024 RESULTS

- - -

GAAP DILUTED EPS OF $1.61, ADJUSTED1 EPS OF $1.64

GAAP NET REVENUES OF $1,203 MILLION, ADJUSTED NET REVENUES OF $1,216 MILLION

RAISES QUARTERLY DIVIDEND FROM $0.10 TO $0.25

GREENWICH, CT, April 16, 2024 - Interactive Brokers Group, Inc. (Nasdaq: IBKR), an automated global electronic broker, announced results for the quarter ended March 31, 2024.

Reported diluted earnings per share were $1.61 for the current quarter and $1.64 as adjusted. For the year-ago quarter, reported diluted earnings per share were $1.42 and $1.35 as adjusted.

Reported net revenues were $1,203 million for the current quarter and $1,216 million as adjusted. For the year-ago quarter, reported net revenues were $1,056 million and $1,015 million as adjusted.

Reported income before income taxes was $866 million for the current quarter and $879 million as adjusted. For the year- ago quarter, reported income before income taxes was $761 million and $720 million as adjusted.

Financial Highlights

(All comparisons are to the year-ago quarter.)

• Commission revenue increased 6% to $379 million. Customer trading volume was mixed across product types with options contract volume up 24%, while futures contract and stock share volumes were down 3% and 16%, respectively.
• Net interest income increased 17% to $747 million on higher benchmark interest rates, customer margin loans and customer credit balances.
• Other fees and services increased $16 million, or 37%, to $59 million, driven primarily by increases of $13 million in risk exposure fees and $2 million in FDIC sweeps fees.
• Execution, clearing and distribution fees expenses increased 6% to $101 million, driven by higher customer trading volume in options.
• Pretax profit margin for the current quarter was 72% both as reported and as adjusted. For the year-ago quarter, reported pretax margin was 72% and 71% as adjusted.
• Total equity of $14.7 billion.

The Interactive Brokers Group, Inc. Board of Directors declared an increase in the quarterly cash dividend from $0.10 per share to $0.25 per share. This dividend is payable on June 14, 2024, to shareholders of record as of May 31, 2024.

1 See the reconciliation of non-GAAP financial measures starting on page 9.

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Business Highlights

(All comparisons are to the year-ago quarter.)

• Customer accounts increased 25% to 2.75 million.
• Customer equity increased 36% to $465.9 billion.
• Total DARTs2 increased 14% to 2.35 million.
• Customer credits increased 9% to $104.9 billion.
• Customer margin loans increased 30% to $51.2 billion.

Other Items

In connection with our currency diversification strategy, we base our net worth in GLOBALs, a basket of 10 major currencies in which we hold our equity. In this quarter, our currency diversification strategy decreased our comprehensive earnings by $104 million, as the U.S. dollar value of the GLOBAL decreased by approximately 0.73%. The effects of the currency diversification strategy are reported as components of (1) Other Income (loss of $2 million) and (2) Other Comprehensive Income (loss of $102 million).

Conference Call Information:

Interactive Brokers Group, Inc. will hold a conference call with investors today, April 16, 2024, at 4:30 p.m. ET to discuss its quarterly results. Members of the public who would like to listen to the conference call should register athttps://register.vevent.com/register/BI26c88a82ea0c42b9a6ac91b51a30659cto obtain the dial-indetails. The number should be dialed approximately ten minutes prior to the start of the 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 150 markets in numerous countries and currencies, from a single unified platform to clients worldwide. We serve 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 clients with a uniquely sophisticated platform to manage their investment portfolios. We strive to provide our clients 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. For the sixth consecutive year, Barron's ranked Interactive Brokers #1 with 5 out of 5 stars in its June 9, 2023, Best Online Brokers Review.

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.

For Interactive Brokers Group, Inc. Investors: Nancy Stuebe, [e-mail] or Media: Rob Garfield, [e-mail].

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

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

			Three Months
			Ended March 31,
			2024				2023
			(in millions, except	share and per share data)
Revenues:
Commissions	$	379	$	357
Other fees and services			59				43
Other income			18				19
Total non-interest income			456				419
Interest income			1,760				1,347
Interest expense			(1,013)				(710)
Total net interest income			747				637
Total net revenues
		1,203				1,056
Non-interest expenses:
Execution, clearing and distribution fees			101				95
Employee compensation and benefits			145				128
Occupancy, depreciation and amortization			26				24
Communications			10				9
General and administrative			50				36
Customer bad debt			5				3
Total non-interest expenses			337				295
Income before income taxes			866				761
Income tax expense			71				61
Net income			795				700
Net income attributable to noncontrolling interests			620				552
Net income available for common stockholders	$	175	$	148
Earnings per share:
Basic		$	1.63		$	1.44
Diluted
	$	1.61		$	1.42
Weighted average common shares outstanding:
Basic			107,070,830				102,958,660
Diluted			108,149,440				104,042,571

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

			Three Months
			Ended March 31,
			2024				2023
			(in millions, except		share and per share data)
Comprehensive income:
Net income available for common stockholders	$	175	$	148
Other comprehensive income:
Cumulative translation adjustment, before income taxes			(26)				5
Income taxes related to items of other comprehensive income			-				-
Other comprehensive income (loss), net of tax			(26)				5
Comprehensive income available for common stockholders	$	149		$	153
Comprehensive earnings per share:
Basic	$	1.39	$	1.48
Diluted		$	1.37		$	1.47
Weighted average common shares outstanding:
Basic			107,070,830				102,958,660
Diluted			108,149,440				104,042,571
Comprehensive income attributable to noncontrolling interests:
Net income attributable to noncontrolling interests	$	620	$	552
Other comprehensive income - cumulative translation adjustment			(76)				14
Comprehensive income attributable to noncontrolling interests		$	544			$	566

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INTERACTIVE BROKERS GROUP, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (UNAUDITED)

										March 31,					December 31,
										2024					2023
										(in millions)
Assets
Cash and cash equivalents				$	4,063	$	3,753
Cash - segregated for regulatory purposes									29,961					28,840
Securities - segregated for regulatory purposes									29,292					35,386
Securities borrowed									6,362					5,835
Securities purchased under agreements to resell									6,674					5,504
Financial instruments owned, at fair value									1,112					1,488
Receivables from customers, net of allowance for credit losses									51,395					44,472
Receivables from brokers, dealers and clearing organizations									1,684					1,643
Other assets									1,695					1,502
Total assets					$	132,238			$	128,423
Liabilities and equity
Liabilities
Short-term borrowings				$	14	$	17
Securities loaned									14,216					11,347
Financial instruments sold but not yet purchased, at fair value									236					193
Other payables:
Customers									101,197					101,012
Brokers, dealers and clearing organizations									561					590
Other payables									1,355					1,197
Total liabilities									103,113					102,799
								117,579					114,356
Equity
Stockholders' equity									3,732					3,584
Noncontrolling interests									10,927					10,483
Total equity									14,659					14,067
Total liabilities and equity					$	132,238				$	128,423
		March 31, 2024						December 31, 2023
Ownership of IBG LLC Membership Interests		Interests		%				Interests						%
IBG, Inc.	107,099,483			25.4%				107,049,483					25.4%
Noncontrolling interests (IBG Holdings LLC)		313,976,354			74.6%				313,976,354					74.6%
Total IBG LLC membership interests	421,075,837			100.0%				421,025,837					100.0%

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INTERACTIVE BROKERS GROUP, INC. AND SUBSIDIARIES

OPERATING DATA

EXECUTED ORDER VOLUMES: (in 000's, except %)

Period	Customer	%	Principal	%	Total	%
Orders	Change	Orders	Change	Orders	Change
2021	646,440		27,334		673,774
2022	532,064	(18%)	26,966	(1%)	559,030	(17%)
2023	483,015	(9%)	29,712	10%	512,727	(8%)
1Q2023	127,329		6,757		134,086
1Q2024	143,320	13%	9,190	36%	152,510	14%
4Q2023	120,886		7,932		128,818
1Q2024	143,320	19%	9,190	16%	152,510	18%
CONTRACT AND SHARE VOLUMES:
(in 000's, except %)
TOTAL	Options	%	Futures1	%	Stocks	%
Period
(contracts)	Change	(contracts)	Change	(shares)	Change
2021	887,849		154,866		771,273,709
2022	908,415	2%	207,138	34%	330,035,586	(57%)
2023	1,020,736	12%	209,034	1%	252,742,847	(23%)
1Q2023	247,508		55,197		75,522,066
1Q2024	307,593	24%	54,046	(2%)	64,027,092	(15%)
4Q2023	279,945		53,883		59,046,908
1Q2024	307,593	10%	54,046	0%	64,027,092	8%
CUSTOMER	Options	%	Futures1	%	Stocks	%
Period
(contracts)	Change	(contracts)	Change	(shares)	Change
2021	852,169		152,787		766,211,726
2022	873,914	3%	203,933	33%	325,368,714	(58%)
2023	981,172	12%	206,073	1%	248,588,960	(24%)
1Q2023	239,038		54,577		74,562,384
1Q2024	296,146	24%	53,018	(3%)	62,898,480	(16%)
4Q2023	269,082		52,996		58,112,082
1Q2024	296,146	10%	53,018	0%	62,898,480	8%
PRINCIPAL TRANSACTIONS		Futures1
Period	Options	%	%	Stocks	%
(contracts)	Change	(contracts)	Change	(shares)	Change
2021	35,680		2,079		5,061,983
2022	34,501	(3%)	3,205	54%	4,666,872	(8%)
2023	39,564	15%	2,961	(8%)	4,153,887	(11%)
1Q2023	8,470		620		959,682
1Q2024	11,447	35%	1,028	66%	1,128,612	18%
4Q2023	10,863		887		934,826
1Q2024	11,447	5%	1,028	16%	1,128,612	21%

1 Includes options on futures

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INTERACTIVE BROKERS GROUP, INC. AND SUBSIDIARIES

OPERATING DATA, CONTINUED

CUSTOMER STATISTICS
Year over Year	1Q2024	1Q2023	% Change
Total Accounts (in thousands)	2,746	2,195	25%
Customer Equity (in billions)1	$465.9	$343.1	36%
Total Customer DARTs (in thousands)	2,350	2,054	14%
Cleared Customers
Commission per Cleared Commissionable Order2	$2.93	$3.16	(7%)
Cleared Avg. DARTs per Account (Annualized)	197	214	(8%)

Consecutive Quarters	1Q2024	4Q2023	% Change
Total Accounts (in thousands)	2,746	2,562	7%
Customer Equity (in billions)1	$465.9	$426.0	9%
Total Customer DARTs (in thousands)	2,350	1,934	22%
Cleared Customers
Commission per Cleared Commissionable Order2	$2.93	$3.19	(8%)
Cleared Avg. DARTs per Account (Annualized)	197	172	15%
(1)	Excludes non-Customers.
(2)	Commissionable Order - a customer order that generates commissions.

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INTERACTIVE BROKERS GROUP, INC. AND SUBSIDIARIES NET INTEREST MARGIN

(UNAUDITED)

		Three Months
	2024	Ended March 31,	2023
Average interest-earning assets		(in millions)
Segregated cash and securities	$	61,132	$	59,679
Customer margin loans		46,653			39,303
Securities borrowed		5,368			4,868
Other interest-earning assets		9,952			9,777
FDIC sweeps1		3,861			2,428
	$	126,966		$	116,055
Average interest-bearing liabilities
Customer credit balances	$	99,510	$	95,802
Securities loaned		11,734			8,571
Other interest-bearing liabilities		-			1
	$	111,244		$	104,374
Net interest income
Segregated cash and securities, net	$	764	$	603
Customer margin loans2		678			477
Securities borrowed and loaned, net		26			88
Customer credit balances, net2		(881)			(653)
Other net interest income1/3		175			125
Net interest income3	$	762	$	640
Net interest margin ("NIM")		2.41%			2.24%
Annualized yields
Segregated cash and securities		5.03%			4.10%
Customer margin loans		5.85%			4.92%
Customer credit balances		3.56%			2.76%

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. 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).
3. Includes income from financial instruments that has the same characteristics as interest, but is reported in other fees and services and other income in the Company's consolidated statements of comprehensive income. For the three months ended March 31, 2024 and 2023, $6 million and $3 million were reported in other fees and services, respectively. For the three months ended March 31, 2024 and 2023, $9 million and $0 million were reported in other income, respectively.

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INTERACTIVE BROKERS GROUP, INC. AND SUBSIDIARIES RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (UNAUDITED)

		Three Months
	Ended March 31,
	2024			2023
		(in millions)
Adjusted net revenues1
Net revenues - GAAP	$	1,203	$	1,056
Non-GAAP adjustments
Currency diversification strategy, net		2					(1)
Mark-to-market on investments2		11					(40)
Total non-GAAP adjustments
	13					(41)
Adjusted net revenues	$	1,216	$	1,015
Adjusted income before income taxes1
Income before income taxes - GAAP	$	866	$	761
Non-GAAP adjustments
Currency diversification strategy, net		2					(1)
Mark-to-market on investments2		11					(40)
Total non-GAAP adjustments		13					(41)
Adjusted income before income taxes	$	879	$	720
Adjusted pre-tax profit margin		72%					71%

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		Three Months
		Ended March 31,
		2024			2023
		(in millions)
Adjusted net income available for common stockholders1
Net income available for common stockholders - GAAP	$	175	$	148
Non-GAAP adjustments
Currency diversification strategy, net		0			0
Mark-to-market on investments2		3			(10)
Income tax effect of above adjustments3		(1)			2
Total non-GAAP adjustments
	2			(8)
Adjusted net income available for common stockholders	$	177	$	140
Note: Amounts may not add due to rounding.
		Three Months
		Ended March 31,
		2024			2023
		(in dollars)
Adjusted diluted EPS1
Diluted EPS - GAAP	$	1.61	$	1.42
Non-GAAP adjustments
Currency diversification strategy, net		0.00			(0.00)
Mark-to-market on investments2		0.03			(0.09)
Income tax effect of above adjustments3		(0.01)			0.02
Total non-GAAP adjustments		0.02			(0.07)
Adjusted diluted EPS	$	1.64	$	1.35
Diluted weighted average common shares outstanding		108,149,440			104,042,571
Note: Amounts may not add due to rounding.

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