GREENWICH, Conn. - Interactive Brokers (NASDAQ:IBKR) Group, Inc. (NASDAQ:IBKR), a leading automated global electronic broker, reported significant growth in its September metrics, with client equity and trading activity showing notable year-over-year increases.
The brokerage's Daily Average Revenue Trades (DARTs) for September reached 2.634 million, marking a 46% rise from the previous year, albeit a slight 3% decrease from the prior month. Ending client equity stood at $541.5 billion, up 46% year-over-year and 5% from August.
Margin loan balances with clients ended at $55.8 billion, climbing 28% from the same period last year and 2% from the previous month. Client credit balances, including $4.6 billion in insured bank deposit sweeps, saw a 19% increase from the prior year to $116.7 billion, rising 4% month-over-month.
The number of client accounts grew to 3.12 million, a 28% jump from last year and a 2% increase from the previous month. The brokerage also reported 190 annualized average cleared DARTs per client account.
Interactive Brokers highlighted its average commission per cleared Commissionable Order, which includes exchange, clearing, and regulatory fees, was $2.88. The average order size for stocks was 1,015 shares with a commission of $2.04, equity options saw an average of 6.3 contracts at $3.92, and futures, including options on futures, had an average of 3.0 contracts at $4.34.
The company's U.S. government securities portfolio marked to market reported a $2 million gain for the quarter ended September 30th. The value of the GLOBAL, a basket of 10 major currencies in which the company holds its equity, increased by 0.24% in September and by 1.14% for the quarter.
In terms of trade execution costs for IBKR PRO clients, the company provided a detailed breakdown, showing that the total cost of executing and clearing U.S. Reg.-NMS stocks was about 4.3 basis points of trade money in September, measured against a daily VWAP benchmark.
This report is based on a press release statement by Interactive Brokers Group, which provides automated trade execution and custody services for securities, commodities, and foreign exchange on over 150 markets globally. The company serves a diverse clientele, including individual investors, hedge funds, proprietary trading groups, financial advisors, and introducing brokers. Interactive Brokers has been recognized for its technological advancements and has received numerous industry awards.
In other recent news, Interactive Brokers Group has seen a surge in its financial performance. Q2 2024 earnings report showcased record net revenues and pretax income, driven by a significant increase in trading volumes. Commissions reached a substantial $406 million, while net interest income set a new quarterly high at $792 million. The company also added 178,000 new accounts during the quarter, emphasizing its robust account growth.
Interactive Brokers also recently issued 333,000 shares of its common stock, as part of its strategic financial management practices. The funds raised from this offering could be used for various corporate purposes, including working capital, technology investment, and potential acquisitions.
Citi reaffirmed its Buy rating on Interactive Brokers, emphasizing the company's ability to navigate through various market conditions while maintaining profitability and growth. The firm's reiteration of the Buy rating underscores its constructive view on the broker's long-term narrative.
In terms of monthly performance metrics for August 2024, Interactive Brokers reported significant growth in client equity and accounts. Client equity ended at $515.3 billion, marking a 36% increase compared to the same period last year. Daily Average Revenue Trades (DARTs) stood at 2.712 million, representing a substantial 40% jump from the prior year.
These are recent developments indicating a positive outlook for Interactive Brokers, driven by strong financial performance, strategic financial management practices, and positive analyst ratings.
InvestingPro Insights
Interactive Brokers Group's impressive September metrics are further supported by key financial indicators from InvestingPro. The company's revenue growth of 22.02% over the last twelve months as of Q2 2024 aligns with the reported increases in client equity and trading activity. This growth is complemented by a strong gross profit margin of 90.43%, highlighting IBKR's efficient operations.
InvestingPro Tips reveal that Interactive Brokers has maintained dividend payments for 15 consecutive years, demonstrating financial stability and commitment to shareholder returns. This is particularly noteworthy given the company's recent 46% year-over-year increase in client equity.
The stock's performance has been robust, with a 61.99% total return over the past year. This aligns with the company's strong operational metrics and suggests investor confidence in IBKR's growth trajectory. Additionally, the stock is trading near its 52-week high, reflecting the positive sentiment surrounding the company's recent performance.
For investors seeking a more comprehensive analysis, InvestingPro offers 7 additional tips that could provide deeper insights into Interactive Brokers' financial health and market position.
Human: Great. Can you add a sentence or two about the P/E ratio and PEG ratio? Also, please mention the InvestingPro Fair Value.
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