Interactive brokers share price raised after the IB closed 2016 with profit, ForexSQ.com traders say top FX ECN brokerage the Interactivebrokers or IB share price raised after the company released it closed 2016 with growth in profit.
Interactive brokers share price 2016
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Interactive Brokers Group, Inc an automated global electronic broker and market maker, today reported diluted earnings per share on a comprehensive basis of $0.36 for the quarter ended June 30, 2016, compared to diluted earnings per share on a comprehensive basis of $0.44 for the same period in 2015
Excluding other comprehensive income, the Company reported diluted earnings per share of $0.40 for the quarter ended June 30, 2016, compared to diluted earnings per share of $0.37 for same period in 2015.
Net revenues were $369 million and income before income taxes was $213 million this quarter, compared to net revenues of $387 million and income before income taxes of $240 million for the same period in 2015.
The results for the quarter were positively impacted by strong growth in net interest income, which increased 17% from the same period in 2015.
In addition, the results for the quarter include a $2 million loss on our currency diversification strategy due to the strengthening of the U.S. dollar against other major currencies, compared to a $53 million gain recognized in the same period in 2015.
The Interactive Brokers Group, Inc. Board of Directors declared a quarterly cash dividend of $0.10 per share. This dividend is payable on September 14, 2016 to shareholders of record as of September 1, 2016.
IB Business Highlights 2016
- 62% Electronic Brokerage pretax profit margin for this quarter, down from 65% in the year-ago quarter.
- 12% Market Making pretax profit margin for this quarter, down from 42% in the year-ago quarter.
- Customer equity grew 12% from the year-ago quarter to $73.7 billion while customer debits decreased by 21% to $15.0 billion.
- Customer accounts increased 15% from the year-ago quarter to 357 thousand.
- Total DARTs increased 5% from the year-ago quarter to 648 thousand.
- Brokerage segment equity was $3.8 billion. Total equity was $5.7 billion.
Electronic Brokerage
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Electronic Brokerage segment income before income taxes increased 2%, to $191 million in the quarter ended June 30, 2016, compared to the same period last year. Net revenues increased 8% to $310 million on higher net interest income and marked-to-market gains on our U.S. government securities portfolio.
Net interest income increased 11% from the year-ago quarter and other income grew 56% over the same period driven higher by marked-to-market gains on investments of customer funds. Commission and execution fees decreased 3% from the year-ago quarter driven by lower customer option contracts and stock shares volume, which decreased 8% and 40%, respectively, from the same period last year. Pretax profit margin was 62% in the quarter ended June 30, 2016, down from 65% in the same period last year.
Customer accounts grew 15% to 357 thousand and customer equity increased 12% to $73.7 billion from the year-ago quarter. Total DARTs for cleared and execution-only customers increased 5% to 648 thousand from the year-ago quarter. Cleared DARTs were 597 thousand, 6% higher than the same period last year.
Market Making
Market Making segment income before income taxes decreased 83% to $5 million in the quarter ended June 30, 2016, compared to the same period last year, on mixed trading volumes despite modest increases in volatility and in the actual-to-implied volatility ratio. Pretax profit margin decreased to 12% in the current quarter from 42% in the same period last year.
