Interactive Brokers’ Q2 Metrics Rebound From Dampened First Quarter

Interactive Brokers Group (NASDAQ GS: IBKR), an online broker and market maker, today released strong results for the second quarter (Q2) ending June 30, 2015.

, on the back of the sudden rise in the value of the Swiss franc, Q2 results are significantly more positive. Indeed, the broker reported diluted earnings per share on a comprehensive basis of $0.44 for Q2 2015, compared to diluted earnings per share on a comprehensive basis of $0.29 for the same period in 2014, and rebounding 58.8% from Q1’s $0.24.

Net revenues were $387 million and income before income taxes was $240 million this quarter, compared to net revenues of $309 million and $174 million before income taxes for the same period in 2014. The poor results of Q1 saw net revenues slip to $172 million.

The broker’s board of directors also declared a quarterly cash dividend of $0.10 per share, payable on September 14, 2015 to shareholders of record as of September 1, 2015.

Business Highlights for Q2:

• 65% Electronic Brokerage pretax profit margin for this quarter, up from 59% in the year-ago quarter.
• 42% Market Making pretax profit margin for this quarter, up from 37% in the year-ago quarter.
• Customer equity grew 22% from the year-ago quarter to $66.0 billion and customer debits increased by 23% to $19.0 billion.
• Customer accounts increased 18% from the year-ago quarter to 310 thousand.
• Total DARTs increased 16% from year-ago quarter to 616 thousand.
• Brokerage segment equity was $3.3 billion. Total equity was $5.2 billion.

Commenting on its foreign currency diversification strategy, Interactive Brokers reported: “We have determined to base our net worth in GLOBALs, a basket of 16 major currencies in which we hold our equity. In this quarter, our currency diversification strategy increased our comprehensive earnings by $53 million, as the U.S. dollar value of the GLOBAL increased by approximately 1.0%.”

Interactive Brokers over 45% on the year at the start of the month, with positive trader sentiment towards the firm’s long-term fortunes of market share growth. While in April, the broker entered to acquire online investing market place, Covestor.