Interactive Brokers, the US-based global electronic multi-asset broker and market maker have published its third quarter financial results for FY-18, reporting a slight improvement in operational metrics year-on-year. The results were published post the close of US trading session. Despite strong growth in the brokerage segment, it lagged performance in the market making segment.
The net revenues for the third quarter amounted to $439 million which is higher by 3.5 per cent compared to $426 million in the same period last year. Income before tax is reported at $276 million, up by 2.9 per cent compared to $268 million in the same period last year.
The growth in revenue was mostly driven by strong growth in net interest income, which jumped 34 per cent year-on-year and also supported by higher commissions and execution fees realisation. The strong growth was subdued by the negative impact of the company’s currency diversification strategy which decreased its earnings by $27 million compared to gain of $26 million in the year-ago quarter. Previous year’s result was also supported by the $11 million gain in the sale of Group’s US market making business in the year-ago quarter.
Its diluted EPS on net income came in at $0.51 for the third quarter of 2018 compared to $0.43 for the same period in 2017. Diluted EPS on a comprehensive income of $0.50 for the quarter compared to $0.44 for the same period in 2017.
The firm’s electronic brokerage segment continued its robust performance as both revenue and pre-tax profit kept climbing. The segment reported pre-tax income of $292 million in the quarter ending on September 30, 2018, an increase of 30 per cent from the same period last year. Revenue also increased by 21 per cent to $444 million compared to the same quarter last year contributed by higher net income, other income and commission revenue.
On the operating side, customer accounts grew by 26 per cent to 576,000 and customer fund increased by 23 per cent to $142.5 billion from the year-ago quarter. Total DARTs for cleared and execution-only customers increased by 10 per cent to 763,000 from the year-ago quarter. Cleared DARTs came in at 696,000, which is 8 per cent higher than in the same quarter last year.
The market making segment, its performance was less impressive pre-tax profit came in at $7 million, which is down by 36 per cent from the same period last year.