UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of Earliest Event Reported): October 15, 2024
Interactive Brokers Group, Inc.
(Exact Name of Registrant as Specified in its Charter)
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Delaware
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001-33440
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30-0390693
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(State or Other Jurisdiction
of Incorporation)
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(Commission File Number)
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(I.R.S. Employer Identification Number)
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One Pickwick Plaza, Greenwich, Connecticut 06830
(Address of Principal Executive Offices) (Zip Code)
(203) 618-5800
(Registrant’s Telephone Number, Including Area Code)
Not Applicable
(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the
following provisions:
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☐
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
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☐
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
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☐
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
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☐
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
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Title of each class
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Trading Symbol
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Name of the exchange on which registered
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Class A common stock, par value $.01
per share
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IBKR
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The Nasdaq Global Select Market
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Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (230.405 of this
chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (240.12b-2 of this chapter).
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Emerging growth company ☐
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If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any
new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
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Item 2.02. Results of Operations and Financial Condition.
On October 15, 2024, Interactive Brokers Group, Inc. (the “Company”) issued a press release reporting its financial results for the quarter
ended September 30, 2024. A copy of the press release is furnished as Exhibit 99.1 to this report and incorporated herein by reference. All of the information furnished in this report (including Exhibit 99.1 hereto) shall not be deemed to be “filed”
for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and unless expressly set forth by specific reference in such filings, shall not be incorporated by reference in any filing under the Securities Act of 1933, as amended,
whether made before or after the date hereof and regardless of any general incorporation language in such filings.
Item 9.01. Financial Statements and Exhibits.
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99.1
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Press Release dated October 15, 2024.
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104
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Cover Page Interactive Data File (the cover page XBRL tags are embedded within
the Inline XBRL Document). |
***
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be
signed on its behalf by the undersigned hereunto duly authorized.
Dated: October 15, 2024
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INTERACTIVE BROKERS GROUP, INC.
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By:
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/s/ Paul J. Brody
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Name:
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Paul J. Brody
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Title:
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Chief Financial Officer, Treasurer
and Secretary
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INTERACTIVE BROKERS GROUP ANNOUNCES 3Q2024 RESULTS
— — —
GAAP DILUTED EPS OF $1.81, ADJUSTED1 EPS OF $1.75
GAAP NET REVENUES OF $1,365 MILLION, ADJUSTED NET REVENUES OF $1,327 MILLION
GREENWICH, CT, October 15, 2024 — Interactive Brokers Group, Inc. (Nasdaq: IBKR), an automated global electronic broker, announced results for the quarter ended September
30, 2024.
Reported diluted earnings per share were $1.81 for the current quarter and $1.75 as adjusted. For the year-ago quarter, reported diluted earnings per share were $1.56 and
$1.55 as adjusted.
Reported net revenues were $1,365 million for the current quarter and $1,327 million as adjusted. For the year-ago quarter, reported net revenues were $1,145 million and
$1,139 million as adjusted.
Reported income before income taxes was $987 million for the current quarter and $949 million as adjusted. For the year-ago quarter, reported income before income taxes was
$840 million and $834 million as adjusted.
Financial Highlights
(All comparisons are to the year-ago quarter.)
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•
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Commission revenue increased 31% to $435 million on higher customer trading volumes. Customer trading volume in options, stocks and futures increased 35%, 22% and 13%, respectively.
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•
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Net interest income increased 9% to $802 million on higher customer margin loans and customer credit balances.
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•
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Other fees and services increased $20 million, or 38%, to $72 million, driven by increases of $13 million in risk exposure fees, $5 million in payments for order flow from exchange-mandated programs, and $2
million in FDIC sweep program fees.
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•
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Execution, clearing and distribution fees expenses increased 18% to $116 million, driven by a higher SEC fee rate and higher customer trading volumes.
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•
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General and administrative expenses increased $30 million, or 67%, to $75 million, driven primarily by a one-time charge of $12 million related to the consolidation of our European subsidiaries and a $9 million
increase related to legal and regulatory matters.
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•
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Pretax profit margin for the current quarter was 72% both as reported and as adjusted. For the year-ago quarter, pretax margin was 73% both as reported and as adjusted.
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•
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Total equity of $16.1 billion.
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The Interactive Brokers Group, Inc. Board of Directors declared a quarterly cash dividend of $0.25 per share. This dividend is payable on December 13, 2024, to shareholders
of record as of November 29, 2024.
1 See the reconciliation of non-GAAP financial measures starting on page 9.
Business Highlights
(All comparisons are to the year-ago quarter.)
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•
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Customer accounts increased 28% to 3.12 million.
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•
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Customer equity increased 46% to $541.5 billion.
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•
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Total DARTs2 increased 42% to 2.70 million.
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Customer credits increased 19% to $116.7 billion.
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•
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Customer margin loans increased 28% to $55.8 billion.
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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 increased our comprehensive earnings by $178 million, as the U.S. dollar value of the GLOBAL increased by approximately 1.14%. The effects of the currency diversification strategy are reported as components of
(1) Other Income (gain of $25 million) and (2) Other Comprehensive Income (gain of $153 million).
Conference Call Information:
Interactive Brokers Group, Inc. will hold a conference call with investors today, October 15, 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 at https://register.vevent.com/register/BI3215f73851b048a8b64604af65ed4ff9 to obtain the dial-in details. 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. Interactive Brokers has consistently earned recognition as a top broker, garnering multiple awards and accolades from
respected industry sources such as Barron’s, Investopedia, Stockbrokers.com, and many others.
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, investor-relations@ibkr.com or Media: Rob Garfield, media@ibkr.com.
2 Daily average revenue trades (DARTs) are based on customer orders.
INTERACTIVE BROKERS GROUP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
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Three Months
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Nine Months
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Ended September 30,
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Ended September 30,
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2024
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2023
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2024
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2023
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(in millions, except share and per share data)
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Revenues:
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Commissions
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$
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435
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$
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333
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$
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1,220
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$
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1,012
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Other fees and services
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72
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52
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199
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142
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Other income (loss)
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56
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27
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38
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(17)
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Total non-interest income
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563
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412
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1,457
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1,137
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Interest income
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1,888
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1,643
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5,476
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4,535
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Interest expense
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(1,086)
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(910)
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(3,135)
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(2,471)
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Total net interest income
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802
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733
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2,341
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2,064
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Total net revenues
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1,365
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1,145
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3,798
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3,201
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Non-interest expenses:
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Execution, clearing and distribution fees
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116
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98
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332
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286
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Employee compensation and benefits
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145
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127
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436
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391
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Occupancy, depreciation and amortization
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26
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25
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77
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74
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Communications
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9
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10
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29
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29
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General and administrative
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75
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45
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177
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166
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Customer bad debt
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7
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-
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14
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2
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Total non-interest expenses
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378
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305
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1,065
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948
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Income before income taxes
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987
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840
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2,733
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2,253
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Income tax expense
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80
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68
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222
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|
180
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Net income
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907
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772
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2,511
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2,073
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Net income attributable to noncontrolling interests
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708
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605
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1,958
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1,633
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Net income available for common stockholders
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$
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199
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$
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167
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$
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553
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$
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440
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Earnings per share:
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Basic
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$
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1.83
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$
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1.57
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$
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5.12
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$
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4.22
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Diluted
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$
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1.81
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$
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1.56
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$
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5.08
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$
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4.19
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Weighted average common shares outstanding:
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Basic
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108,757,991
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106,233,557
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107,852,597
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104,271,921
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Diluted
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109,536,360
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107,011,427
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108,774,195
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105,184,572
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INTERACTIVE BROKERS GROUP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(UNAUDITED)
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Three Months
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Nine Months
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Ended September 30,
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Ended September 30,
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2024
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2023
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2024
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2023
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(in millions, except share and per share data)
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Comprehensive income:
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|
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Net income available for common stockholders
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$
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199
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$
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167
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$
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553
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$
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440
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Other comprehensive income:
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Cumulative translation adjustment, before income taxes
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39
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(19)
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11
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(7)
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Income taxes related to items of other comprehensive income
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-
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-
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-
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-
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Other comprehensive income (loss), net of tax
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39
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(19)
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11
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(7)
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Comprehensive income available for common stockholders
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$
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238
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$
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148
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$
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564
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$
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433
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Comprehensive earnings per share:
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Basic
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$
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2.19
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$
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1.39
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$
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5.23
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$
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4.15
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Diluted
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$
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2.18
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$
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1.38
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$
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5.18
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$
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4.12
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|
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|
|
|
|
|
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Weighted average common shares outstanding:
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Basic
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108,757,991
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106,233,557
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107,852,597
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104,271,921
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Diluted
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109,536,360
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107,011,427
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108,774,195
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105,184,572
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|
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|
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Comprehensive income attributable to noncontrolling interests:
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|
|
|
|
|
|
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Net income attributable to noncontrolling interests
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$
|
708
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$
|
605
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$
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1,958
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$
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1,633
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Other comprehensive income - cumulative translation adjustment
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114
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(57)
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30
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(19)
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Comprehensive income attributable to noncontrolling interests
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|
$
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822
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$
|
548
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$
|
1,988
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$
|
1,614
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INTERACTIVE BROKERS GROUP, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(UNAUDITED)
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September 30,
2024
|
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December 31,
2023
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(in millions)
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| |
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Assets
|
|
|
|
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Cash and cash equivalents
|
|
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$
|
3,595
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|
$
|
3,753
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Cash - segregated for regulatory purposes
|
|
|
|
|
35,216
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|
|
28,840
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Securities - segregated for regulatory purposes
|
|
|
|
|
31,103
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|
|
35,386
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|
Securities borrowed
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|
|
|
|
7,513
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|
|
5,835
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|
Securities purchased under agreements to resell
|
|
|
|
|
8,176
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|
|
5,504
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Financial instruments owned, at fair value
|
|
|
|
|
2,949
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|
|
1,488
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|
Receivables from customers, net of allowance for credit losses
|
|
|
|
|
56,006
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|
|
44,472
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Receivables from brokers, dealers and clearing organizations
|
|
|
|
|
2,210
|
|
|
1,643
|
|
Other assets
|
|
|
|
|
1,758
|
|
|
1,502
|
| |
Total assets
|
|
|
|
$
|
148,526
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|
$
|
128,423
|
| |
|
|
|
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|
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|
|
Liabilities and equity
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
|
|
|
|
|
Short-term borrowings
|
|
|
|
$
|
33
|
|
$
|
17
|
|
Securities loaned
|
|
|
|
|
16,818
|
|
|
11,347
|
|
Financial instruments sold but not yet purchased, at fair value
|
|
|
|
|
381
|
|
|
193
|
|
Other payables:
|
|
|
|
|
|
|
|
|
| |
Customers
|
|
|
|
|
112,579
|
|
|
101,012
|
| |
Brokers, dealers and clearing organizations
|
|
|
|
|
1,202
|
|
|
590
|
| |
Other payables
|
|
|
|
|
1,435
|
|
|
1,197
|
| |
|
|
|
|
|
115,216
|
|
|
102,799
|
| |
Total liabilities
|
|
|
|
|
132,448
|
|
|
114,356
|
| |
|
|
|
|
|
|
|
|
|
|
Equity
|
|
|
|
|
|
|
|
|
|
Stockholders' equity
|
|
|
|
|
4,160
|
|
|
3,584
|
|
Noncontrolling interests
|
|
|
|
|
11,918
|
|
|
10,483
|
| |
Total equity
|
|
|
|
|
16,078
|
|
|
14,067
|
| |
Total liabilities and equity
|
|
|
|
$
|
148,526
|
|
$
|
128,423
|
| |
|
|
|
|
|
|
|
|
|
| |
|
September 30, 2024
|
|
December 31, 2023
|
|
Ownership of IBG LLC Membership Interests
|
Interests
|
|
%
|
|
Interests
|
|
|
%
|
| |
|
|
|
|
|
|
|
|
|
|
IBG, Inc.
|
108,879,779
|
|
25.8%
|
|
107,049,483
|
|
|
25.4%
|
|
Noncontrolling interests (IBG Holdings LLC)
|
313,643,354
|
|
74.2%
|
|
313,976,354
|
|
|
74.6%
|
| |
|
|
|
|
|
|
|
|
|
|
Total IBG LLC membership interests
|
422,523,133
|
|
100.0%
|
|
421,025,837
|
|
|
100.0%
|
INTERACTIVE BROKERS GROUP, INC. AND SUBSIDIARIES
OPERATING DATA
EXECUTED ORDER VOLUMES:
(in 000's, except %)
| |
|
Customer
|
|
%
|
|
Principal
|
|
%
|
|
Total
|
|
%
|
|
Period
|
|
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%)
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
3Q2023
|
|
119,188
|
|
|
|
8,187
|
|
|
|
127,375
|
|
|
|
3Q2024
|
|
171,620
|
|
44%
|
|
17,722
|
|
116%
|
|
189,342
|
|
49%
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
2Q2024
|
|
150,292
|
|
|
|
13,215
|
|
|
|
163,507
|
|
|
|
3Q2024
|
|
171,620
|
|
14%
|
|
17,722
|
|
34%
|
|
189,342
|
|
16%
|
CONTRACT AND SHARE VOLUMES:
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%)
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
3Q2023
|
|
256,481
|
|
|
|
50,309
|
|
|
|
59,453,190
|
|
|
|
3Q2024
|
|
344,540
|
|
34%
|
|
56,825
|
|
13%
|
|
72,117,769
|
|
21%
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
2Q2024
|
|
321,141
|
|
|
|
55,171
|
|
|
|
73,734,105
|
|
|
|
3Q2024
|
|
344,540
|
|
7%
|
|
56,825
|
|
3%
|
|
72,117,769
|
|
(2%)
|
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%)
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
3Q2023
|
|
245,169
|
|
|
|
49,459
|
|
|
|
58,202,858
|
|
|
|
3Q2024
|
|
330,173
|
|
35%
|
|
56,078
|
|
13%
|
|
70,751,412
|
|
22%
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
2Q2024
|
|
308,298
|
|
|
|
54,106
|
|
|
|
72,480,534
|
|
|
|
3Q2024
|
|
330,173
|
|
7%
|
|
56,078
|
|
4%
|
|
70,751,412
|
|
(2%)
|
PRINCIPAL TRANSACTIONS
| |
|
Options
|
|
%
|
|
Futures1
|
|
%
|
|
Stocks
|
|
%
|
|
Period
|
|
(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%)
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
3Q2023
|
|
11,312
|
|
|
|
850
|
|
|
|
1,250,332
|
|
|
|
3Q2024
|
|
14,367
|
|
27%
|
|
747
|
|
(12%)
|
|
1,366,357
|
|
9%
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
2Q2024
|
|
12,843
|
|
|
|
1,065
|
|
|
|
1,253,571
|
|
|
|
3Q2024
|
|
14,367
|
|
12%
|
|
747
|
|
(30%)
|
|
1,366,357
|
|
9%
|
|
1
|
Includes options on futures.
|
INTERACTIVE BROKERS GROUP, INC. AND SUBSIDIARIES
OPERATING DATA, CONTINUED
CUSTOMER STATISTICS
| |
|
|
|
|
|
|
|
|
|
Year over Year
|
|
|
3Q2024
|
|
|
3Q2023
|
|
% Change
|
|
Total Accounts (in thousands)
|
|
|
3,120
|
|
|
2,431
|
|
28%
|
|
Customer Equity (in billions)1
|
|
$
|
541.5
|
|
$
|
369.8
|
|
46%
|
| |
|
|
|
|
|
|
|
|
|
Total Customer DARTs (in thousands)
|
|
|
2,703
|
|
|
1,907
|
|
42%
|
| |
|
|
|
|
|
|
|
|
|
Cleared Customers
|
|
|
|
|
|
|
|
|
|
Commission per Cleared Commissionable Order2
|
|
$
|
2.83
|
|
$
|
3.11
|
|
(9%)
|
|
Cleared Avg. DARTs per Account (Annualized)
|
|
|
198
|
|
|
180
|
|
10%
|
| |
|
|
|
|
|
|
|
|
|
Consecutive Quarters
|
|
|
3Q2024
|
|
|
2Q2024
|
|
% Change
|
|
Total Accounts (in thousands)
|
|
|
3,120
|
|
|
2,924
|
|
7%
|
|
Customer Equity (in billions)1
|
|
$
|
541.5
|
|
$
|
497.2
|
|
9%
|
| |
|
|
|
|
|
|
|
|
|
Total Customer DARTs (in thousands)
|
|
|
2,703
|
|
|
2,386
|
|
13%
|
| |
|
|
|
|
|
|
|
|
|
Cleared Customers
|
|
|
|
|
|
|
|
|
|
Commission per Cleared Commissionable Order2
|
|
$
|
2.83
|
|
$
|
3.01
|
|
(6%)
|
|
Cleared Avg. DARTs per Account (Annualized)
|
|
|
198
|
|
|
187
|
|
6%
|
|
1
|
Excludes non-customers.
|
| |
|
2
|
Commissionable Order - a customer order that generates commissions.
|
INTERACTIVE BROKERS GROUP, INC. AND SUBSIDIARIES
NET INTEREST MARGIN
(UNAUDITED)
| |
|
|
|
Three Months
|
|
Nine Months
|
| |
|
|
|
Ended September 30,
|
|
Ended September 30,
|
| |
|
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
| |
|
|
|
(in millions)
|
|
Average interest-earning assets
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Segregated cash and securities
|
|
$
|
61,813
|
|
$
|
58,131
|
|
$
|
61,000
|
|
$
|
59,616
|
| |
Customer margin loans
|
|
|
54,647
|
|
|
42,853
|
|
|
51,240
|
|
|
40,715
|
| |
Securities borrowed
|
|
|
6,241
|
|
|
5,557
|
|
|
5,836
|
|
|
5,358
|
| |
Other interest-earning assets
|
|
|
11,678
|
|
|
10,054
|
|
|
10,949
|
|
|
9,974
|
| |
FDIC sweeps1
|
|
|
4,330
|
|
|
3,311
|
|
|
4,071
|
|
|
2,819
|
| |
|
|
|
$
|
138,709
|
|
$
|
119,906
|
|
$
|
133,097
|
|
$
|
118,482
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average interest-bearing liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Customer credit balances
|
|
$
|
106,865
|
|
$
|
95,506
|
|
$
|
103,028
|
|
$
|
95,908
|
| |
Securities loaned
|
|
|
14,258
|
|
|
9,848
|
|
|
13,227
|
|
|
9,383
|
| |
Other interest-bearing liabilities
|
|
|
1
|
|
|
1
|
|
|
1
|
|
|
1
|
| |
|
|
|
$
|
121,124
|
|
$
|
105,355
|
|
$
|
116,255
|
|
$
|
105,291
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Segregated cash and securities, net
|
|
$
|
763
|
|
$
|
728
|
|
$
|
2,267
|
|
$
|
2,031
|
| |
Customer margin loans2
|
|
|
787
|
|
|
623
|
|
|
2,220
|
|
|
1,647
|
| |
Securities borrowed and loaned, net
|
|
|
16
|
|
|
66
|
|
|
67
|
|
|
233
|
| |
Customer credit balances, net2
|
|
|
(936)
|
|
|
(832)
|
|
|
(2,711)
|
|
|
(2,259)
|
| |
Other net interest income1/3
|
|
|
196
|
|
|
159
|
|
|
550
|
|
|
429
|
| |
|
Net interest income3
|
|
$
|
826
|
|
$
|
744
|
|
$
|
2,393
|
|
$
|
2,081
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest margin ("NIM")
|
|
|
2.37%
|
|
|
2.46%
|
|
|
2.40%
|
|
|
2.35%
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Annualized yields
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Segregated cash and securities
|
|
|
4.91%
|
|
|
4.97%
|
|
|
4.96%
|
|
|
4.55%
|
| |
Customer margin loans
|
|
|
5.73%
|
|
|
5.77%
|
|
|
5.79%
|
|
|
5.41%
|
| |
Customer credit balances
|
|
|
3.48%
|
|
|
3.46%
|
|
|
3.51%
|
|
|
3.15%
|
Note: The term “GAAP” in the following explanation refers to generally accepted accounting principles in the United States.
1 Adjusted net revenues, adjusted income before income taxes, adjusted net income available for common stockholders and adjusted
diluted earnings per share (“EPS”) are non-GAAP financial measures.
|
•
|
We define adjusted net revenues as net revenues adjusted to remove the effect of our currency diversification strategy and our net mark-to-market
gains (losses) on investments2.
|
|
•
|
We define adjusted income before income taxes as income before income taxes adjusted to remove the effect of our currency diversification strategy
and our net mark-to-market gains (losses) on investments.
|
|
•
|
We define adjusted net income available to common stockholders as net income available for common stockholders adjusted to remove the after-tax
effects attributable to IBG, Inc. of our currency diversification strategy and our net mark-to-market gains (losses) on investments.
|
|
•
|
We define adjusted diluted EPS as adjusted net income available for common stockholders divided by the diluted weighted average number of shares
outstanding for the period.
|
Management believes these non-GAAP items are important measures of our financial performance because they exclude certain items that may not be indicative of
our core operating results and business outlook and may be useful to investors and analysts in evaluating the operating performance of the business and facilitating a meaningful comparison of our results in the current period to those in prior and
future periods. Our currency diversification strategy and our mark-to-market on investments are excluded because management does not believe they are indicative of our underlying core business performance. Adjusted net revenues, adjusted income
before income taxes, adjusted net income available to common stockholders and adjusted diluted EPS should be considered in addition to, rather than as a substitute for, GAAP net revenues, income before income taxes, net income attributable to common
stockholders and diluted EPS.
2 Mark-to-market on investments represents the net mark-to-market gains (losses) on investments in equity securities that do not qualify for equity
method accounting, which are measured at fair value; on our U.S. government and municipal securities portfolios, which are typically held to maturity; and on certain other investments, including equity securities taken over by the Company as a
customer accommodation due to a technical issue at the New York Stock Exchange that occurred on the morning of June 3, 2024.
3 The income tax effect is estimated using the statutory income tax rates applicable to the Company.