Interactive Brokers Group, an electronic broker based in Greenwich, Conn., has reported an increase in revenue and earnings for the fourth quarter. This growth can be attributed to higher interest rates.
For the period, the company posted a profit of $160 million, or $1.48 per share, compared to $136 million, or $1.31 per share, in the same period the previous year. Adjusted earnings were recorded at $1.52 per share, slightly below analysts’ expectations of $1.53 per share.
Revenue displayed a 17% increase to reach $1.14 billion, which perfectly matched analysts’ estimates.
During this time, customer accounts experienced a significant rise of 23% to reach 2.56 million. Additionally, customer equity climbed by an impressive 39% to reach $426 billion.
Among its various revenue streams, commission revenue saw a 5% increase to $348 million. Customer trading volume, however, varied across different product types. Options and futures contract volumes increased by 21% and 4%, respectively, while stock share volume decreased by 22%.
Net interest income also saw a significant rise, increasing by 29% to $730 million. This growth can be attributed to higher benchmark interest rates, customer margin loans, and customer credit balances.
Overall, Interactive Brokers Group has experienced a strong quarter with positive growth and substantial increases in both revenue and earnings.
