Interactive Brokers shines in Q4 2023, reporting surging revenues driven by a 5% increase in commission, robust customer growth, and strong financial standing.
Forex broker Interactive Brokers announced impressive financial results for Q4 2023, reporting a significant revenue surge. The US-based broker recorded $816 million before tax, showcasing substantial growth from the previous year's corresponding quarter, where income before tax stood at $689 million. Diluted earnings per share rose to $1.48, highlighting a remarkable improvement.
The 5% increase in this low margin broker's commission revenue, totaling $348 million, was attributed to a notable 21% rise in options contract volumes and a 4% increase in futures contract volumes.
Despite a 22% decrease in stock share volume, forex broker Interactive Brokers net interest income experienced a robust 29% jump to $730 million, driven by higher benchmark interest rates, increased customer margin loans, and growing customer credit balances.
This SEC-regulated broker navigated challenges, managing a $31 million drop in other income, amounting to $6 million, associated with its currency diversification strategy and investments.
Customer trading volumes were pivotal in the firm's success, contributing to an 11% increase in execution, clearing, and distribution fee expenses, totaling $100 million.
This leading multi-asset broker reported substantial growth in customer accounts, up by 23% to 2.56 million and a remarkable 39% increase in customer equity, reaching $426 billion. The Board of Directors declared a quarterly cash dividend of $0.10 per share, solidifying Interactive Brokers financial standing with a total equity of $14.1 billion.
In other forex broker news, Interactive Brokers achieved a milestone with 2.5 million clients, boasting a 22% YoY increase in active accounts.