Interactive Brokers Records Strong Q4 and Full Year 2023 Results

Interactive Brokers, a US-based automated global electronic broker, has published its financial results for the fourth quarter and the full year 2023, unveiling substantial yearly growth in total net revenue for both periods.

Financial Overview for Q4 2023

• Net revenue reached $1,139 million for the period, up 16.7% compared to $$976 million in the year-ago quarter. The adjusted figure was $1,149 million, up 19.9% compared to $958 million in Q4 2022.

• The reported income before tax for the quarter amounted to $816 million, 18.4% higher than $689 million in the same period of 2022. The adjusted income before tax was $831 million, up 23.8% on a year-on-year basis (YoY) (Q4 2022: $671 million).

• The quarterly pretax profit margin stood at 72% both as reported and as adjusted, compared to 71% and 70% as adjusted in the year-ago quarter.

• Commission revenue increased from $331 million in Q4 2022 to $348 million for the period, up 5.1% YoY.

• Net interest income recorded $730 million, rising 29.2% compared to $565 million in the the same quarter of 2022.

• Other income decreased from $37 million in Q4 2022 to $6 million, down 83.8% YoY.

• Execution, clearing, and distribution fees expenses totaled $100 million for the period, increasing 11.1% compared to $90 million in the same period of last year.

• Total equity amounted to $14.1 billion, rising 21.6% compared to $11.6 billion in Q4 2022.

• The diluted earnings per share were $1.48 as reported and $1.52 as adjusted. For the year-ago quarter, the figure were $1.31 and $1.30 respectively.

Financial Overview for the Full Year 2023

• Net revenue for the full year totaled $4,340 million, 41.5% higher than $3,067 million in 2022. Among them, commission revenue rose from $1,322 million to $1,360 million, up 2.9% YoY; Interest Income rose from $2,686 million to $6,230 million, jump 131.9% YoY.

• Income before tax for the year was $3,069 million, surging 53.6% compared to $1,998 million in the prior year.

• Net income reached $2,812 million, up 52.7% compared to $1,842 million in 2022.

• The diluted earnings per share was $5.67, 51.2% higher than $3.75 per share in 2022.