|
|
|
(State or Other Jurisdiction
of Incorporation)
|
(Commission File Number)
|
(I.R.S. Employer Identification Number)
|
|
|
|
|
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
|
|
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
|
|
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
|
|
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
|
Title of each class
|
|
Trading Symbol
|
|
Name of the exchange on which registered
|
|
|
|
|
|
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (230.405 of this
chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (240.12b-2 of this chapter).
|
|
|
|
|
|
Emerging growth company
|
||
|
|
|
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any
new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
|
104
|
Cover Page Interactive Data File (the cover page XBRL tags are embedded within the Inline XBRL Document). |
|
INTERACTIVE BROKERS GROUP, INC.
|
|
|
|
|
|
|
|
|
|
|
|
By:
|
/s/ Paul J. Brody
|
|
|
Name:
|
Paul J. Brody
|
|
|
Title:
|
Chief Financial Officer, Treasurer
and Secretary
|
|
•
|
Commission revenue decreased 15% to $349 million on customer stock volume that dropped from an unusually active trading period last year, but was aided by higher customer options and futures trading volumes.
|
•
|
Net interest income decreased 8% to $282 million on a decline in securities lending activity, partially offset by gains on margin lending and segregated cash balances.
|
•
|
Other income decreased $159 million to a loss of $39 million. This decrease was mainly comprised of the non-recurrence of a $99 million gain related to our strategic investment in Up Fintech Holding Limited
(“Tiger Brokers”), $29 million related to our U.S. government securities portfolio, and $16 million related to our currency diversification strategy.
|
•
|
Reported pretax profit margin was 61% for the current quarter and 64% as adjusted. For the year-ago quarter, reported pretax margin was 72% and 68% as adjusted.
|
•
|
Total equity of $10.5 billion.
|
•
|
Customer accounts increased 36% to 1.81 million.
|
•
|
Customer equity grew 8% to $355.9 billion.
|
•
|
Total DARTs2 decreased 24% to 2.52 million.
|
•
|
Cleared DARTs decreased 25% to 2.23 million.
|
•
|
Customer credits increased 9% to $92.5 billion.
|
•
|
Customer margin loans increased 14% to $48.2 billion.
|
Three Months
|
||||||||
Ended March 31,
|
||||||||
2022
|
2021
|
|||||||
(in millions, except share and per share data)
|
||||||||
Revenues:
|
||||||||
Commissions
|
$
|
349
|
$
|
412
|
||||
Other fees and services
|
53
|
56
|
||||||
Other income (loss)
|
(39)
|
120
|
||||||
Total non-interest income
|
363
|
588
|
||||||
Interest income
|
332
|
390
|
||||||
Interest expense
|
(50)
|
(85)
|
||||||
Total net interest income
|
282
|
305
|
||||||
Total net revenues
|
645
|
893
|
||||||
Non-interest expenses:
|
||||||||
Execution, clearing and distribution fees
|
71
|
68
|
||||||
Employee compensation and benefits
|
111
|
97
|
||||||
Occupancy, depreciation and amortization
|
22
|
20
|
||||||
Communications
|
8
|
8
|
||||||
General and administrative
|
38
|
59
|
||||||
Customer bad debt
|
1
|
2
|
||||||
Total non-interest expenses
|
251
|
254
|
||||||
Income before income taxes
|
394
|
639
|
||||||
Income tax expense
|
28
|
53
|
||||||
Net income
|
366
|
586
|
||||||
Net income attributable to noncontrolling interests
|
293
|
479
|
||||||
Net income available for common stockholders
|
$
|
73
|
$
|
107
|
||||
Earnings per share:
|
||||||||
Basic
|
$
|
0.74
|
$
|
1.18
|
||||
Diluted
|
$
|
0.74
|
$
|
1.16
|
||||
Weighted average common shares outstanding:
|
||||||||
Basic
|
98,226,147
|
90,789,321
|
||||||
Diluted
|
99,224,776
|
91,766,142
|
Three Months
|
||||||||
Ended March 31,
|
||||||||
2022
|
2021
|
|||||||
(in millions, except share and per share data)
|
||||||||
Comprehensive income:
|
||||||||
Net income available for common stockholders
|
$
|
73
|
$
|
107
|
||||
Other comprehensive income:
|
||||||||
Cumulative translation adjustment, before income taxes
|
(10)
|
(17)
|
||||||
Income taxes related to items of other comprehensive income
|
-
|
-
|
||||||
Other comprehensive loss, net of tax
|
(10)
|
(17)
|
||||||
Comprehensive income available for common stockholders
|
$
|
63
|
$
|
90
|
||||
Comprehensive earnings per share:
|
||||||||
Basic
|
$
|
0.65
|
$
|
0.99
|
||||
Diluted
|
$
|
0.64
|
$
|
0.98
|
||||
Weighted average common shares outstanding:
|
||||||||
Basic
|
98,226,147
|
90,789,321
|
||||||
Diluted
|
99,224,776
|
91,766,142
|
||||||
Comprehensive income attributable to noncontrolling interests:
|
||||||||
Net income attributable to noncontrolling interests
|
$
|
293
|
$
|
479
|
||||
Other comprehensive income - cumulative translation adjustment
|
(31)
|
(59)
|
||||||
Comprehensive income attributable to noncontrolling interests
|
$
|
262
|
$
|
420
|
March 31,
2022
|
December 31,
2021
|
||||||||
(in millions)
|
|||||||||
Assets
|
|||||||||
Cash and cash equivalents
|
$
|
2,667
|
$
|
2,395
|
|||||
Cash - segregated for regulatory purposes
|
24,581
|
22,888
|
|||||||
Securities - segregated for regulatory purposes
|
24,350
|
15,121
|
|||||||
Securities borrowed
|
4,445
|
3,912
|
|||||||
Securities purchased under agreements to resell
|
6,268
|
4,380
|
|||||||
Financial instruments owned, at fair value
|
577
|
673
|
|||||||
Receivables from customers, net of allowance for credit losses
|
48,306
|
54,935
|
|||||||
Receivables from brokers, dealers and clearing organizations
|
2,188
|
3,771
|
|||||||
Other assets
|
1,041
|
1,038
|
|||||||
Total assets
|
$
|
114,423
|
$
|
109,113
|
|||||
Liabilities and equity
|
|||||||||
Liabilities
|
|||||||||
Short-term borrowings
|
$
|
11
|
$
|
27
|
|||||
Securities loaned
|
11,379
|
11,769
|
|||||||
Securities sold under agreements to repurchase
|
300
|
-
|
|||||||
Financial instruments sold but not yet purchased, at fair value
|
190
|
182
|
|||||||
Other payables:
|
|||||||||
Customers
|
91,097
|
85,634
|
|||||||
Brokers, dealers and clearing organizations
|
230
|
557
|
|||||||
Other payables
|
734
|
722
|
|||||||
92,061
|
86,913
|
||||||||
Total liabilities
|
103,941
|
98,891
|
|||||||
Equity
|
|||||||||
Stockholders' equity
|
2,456
|
2,395
|
|||||||
Noncontrolling interests
|
8,026
|
7,827
|
|||||||
Total equity
|
10,482
|
10,222
|
|||||||
Total liabilities and equity
|
$
|
114,423
|
$
|
109,113
|
|||||
March 31, 2022
|
December 31, 2021
|
||||||||
Ownership of IBG LLC Membership Interests
|
Interests
|
%
|
Interests
|
%
|
|||||
IBG, Inc.
|
98,280,127
|
23.5%
|
98,230,127
|
23.5%
|
|||||
Noncontrolling interests (IBG Holdings LLC)
|
319,880,492
|
76.5%
|
319,880,492
|
76.5%
|
|||||
Total IBG LLC membership interests
|
418,160,619
|
100.0%
|
418,110,619
|
100.0%
|
Cleared
|
Non-Cleared
|
Avg. Trades
|
||||||||||||||||
Customer
|
%
|
Customer
|
%
|
Principal
|
%
|
Total
|
%
|
per U.S.
|
||||||||||
Period
|
Trades
|
Change
|
Trades
|
Change
|
Trades
|
Change
|
Trades
|
Change
|
Trading Day
|
|||||||||
2019
|
302,289
|
26,346
|
17,136
|
345,771
|
1,380
|
|||||||||||||
2020
|
620,405
|
105%
|
56,834
|
116%
|
27,039
|
58%
|
704,278
|
104%
|
2,795
|
|||||||||
2021
|
871,319
|
40%
|
78,276
|
38%
|
32,621
|
21%
|
982,216
|
39%
|
3,905
|
|||||||||
1Q2021
|
273,985
|
24,079
|
8,418
|
306,482
|
5,024
|
|||||||||||||
1Q2022
|
212,818
|
(22%)
|
20,671
|
(14%)
|
9,225
|
10%
|
242,714
|
(21%)
|
3,915
|
|||||||||
4Q2021
|
207,457
|
19,961
|
8,001
|
235,419
|
3,707
|
|||||||||||||
1Q2022
|
212,818
|
3%
|
20,671
|
4%
|
9,225
|
15%
|
242,714
|
3%
|
3,915
|
|
Options
|
%
|
Futures1
|
%
|
Stocks
|
%
|
||||||
Period
|
(contracts)
|
Change
|
(contracts)
|
Change
|
(shares)
|
Change
|
||||||
2019
|
390,739
|
128,770
|
176,752,967
|
|||||||||
2020
|
624,035
|
60%
|
167,078
|
30%
|
338,513,068
|
92%
|
||||||
2021
|
887,849
|
42%
|
154,866
|
(7%)
|
771,273,709
|
128%
|
||||||
1Q2021
|
231,797
|
40,868
|
308,934,824
|
|||||||||
1Q2022
|
245,343
|
6%
|
53,570
|
31%
|
97,406,991
|
(68%)
|
||||||
4Q2021
|
244,349
|
41,997
|
117,410,095
|
|||||||||
1Q2022
|
245,343
|
0%
|
53,570
|
28%
|
97,406,991
|
(17%)
|
|
Options
|
%
|
Futures1
|
%
|
Stocks
|
%
|
||||||
Period
|
(contracts)
|
Change
|
(contracts)
|
Change
|
(shares)
|
Change
|
||||||
2019
|
349,287
|
126,363
|
167,826,490
|
|||||||||
2020
|
584,195
|
67%
|
164,555
|
30%
|
331,263,604
|
97%
|
||||||
2021
|
852,169
|
46%
|
152,787
|
(7%)
|
766,211,726
|
131%
|
||||||
1Q2021
|
221,898
|
40,361
|
306,165,385
|
|||||||||
1Q2022
|
234,790
|
6%
|
52,728
|
31%
|
95,990,985
|
(69%)
|
||||||
4Q2021
|
235,400
|
41,318
|
116,546,652
|
|||||||||
1Q2022
|
234,790
|
(0%)
|
52,728
|
28%
|
95,990,985
|
(18%)
|
|
Options
|
%
|
Futures1
|
%
|
Stocks
|
%
|
||||||
Period
|
(contracts)
|
Change
|
(contracts)
|
Change
|
(shares)
|
Change
|
||||||
2019
|
302,068
|
125,225
|
163,030,500
|
|||||||||
2020
|
518,965
|
72%
|
163,101
|
30%
|
320,376,365
|
97%
|
||||||
2021
|
773,284
|
49%
|
151,715
|
(7%)
|
752,720,070
|
135%
|
||||||
1Q2021
|
202,583
|
40,019
|
301,675,030
|
|||||||||
1Q2022
|
212,628
|
5%
|
52,264
|
31%
|
92,860,481
|
(69%)
|
||||||
4Q2021
|
213,143
|
41,096
|
113,441,967
|
|||||||||
1Q2022
|
212,628
|
(0%)
|
52,264
|
27%
|
92,860,481
|
(18%)
|
1
|
Includes options on futures.
|
Options
|
%
|
Futures1
|
%
|
Stocks
|
%
|
|||||||
Period
|
(contracts)
|
Change
|
(contracts)
|
Change
|
(shares)
|
Change
|
||||||
2019
|
41,452
|
2,407
|
8,926,477
|
|||||||||
2020
|
39,840
|
(4%)
|
2,523
|
5%
|
7,249,464
|
(19%)
|
||||||
2021
|
35,680
|
(10%)
|
2,079
|
(18%)
|
5,061,983
|
(30%)
|
||||||
1Q2021
|
9,899
|
507
|
2,769,439
|
|||||||||
1Q2022
|
10,553
|
7%
|
842
|
66%
|
1,416,006
|
(49%)
|
||||||
4Q2021
|
8,949
|
679
|
863,443
|
|||||||||
1Q2022
|
10,553
|
18%
|
842
|
24%
|
1,416,006
|
64%
|
1
|
Includes options on futures.
|
Year over Year
|
1Q2022
|
1Q2021
|
% Change
|
||||
Total Accounts (in thousands)
|
1,809
|
1,325
|
36%
|
||||
Customer Equity (in billions)1
|
$
|
355.9
|
$
|
330.6
|
8%
|
||
Cleared DARTs (in thousands)
|
2,234
|
2,964
|
(25%)
|
||||
Total Customer DARTs (in thousands)
|
2,522
|
3,308
|
(24%)
|
||||
Cleared Customers
|
|||||||
Commission per Cleared Commissionable Order2
|
$
|
2.57
|
$
|
2.31
|
11%
|
||
Cleared Avg. DARTs per Account (Annualized)
|
323
|
622
|
(48%)
|
||||
Consecutive Quarters
|
1Q2022
|
4Q2021
|
% Change
|
||||
Total Accounts (in thousands)
|
1,809
|
1,676
|
8%
|
||||
Customer Equity (in billions)1
|
$
|
355.9
|
$
|
373.8
|
(5%)
|
||
Cleared DARTs (in thousands)
|
2,234
|
2,162
|
3%
|
||||
Total Customer DARTs (in thousands)
|
2,522
|
2,436
|
4%
|
||||
Cleared Customers
|
|||||||
Commission per Cleared Commissionable Order2
|
$
|
2.57
|
$
|
2.38
|
8%
|
||
Cleared Avg. DARTs per Account (Annualized)
|
323
|
339
|
(5%)
|
1
|
Excludes non-customers.
|
|||||||||||||
2
|
Commissionable Order - a customer order that generates commissions.
|
Three Months
|
||||||||
Ended March 31,
|
||||||||
2022
|
2021
|
|||||||
(in millions)
|
||||||||
Average interest-earning assets
|
||||||||
Segregated cash and securities
|
$
|
43,287
|
$
|
46,726
|
||||
Customer margin loans
|
47,141
|
39,964
|
||||||
Securities borrowed
|
3,467
|
5,108
|
||||||
Other interest-earning assets
|
8,211
|
5,416
|
||||||
FDIC sweeps1
|
2,219
|
2,817
|
||||||
$
|
104,325
|
$
|
100,031
|
|||||
Average interest-bearing liabilities
|
||||||||
Customer credit balances
|
$
|
84,394
|
$
|
77,887
|
||||
Securities loaned
|
11,089
|
11,117
|
||||||
Other interest-bearing liabilities
|
12
|
138
|
||||||
$
|
95,495
|
$
|
89,142
|
|||||
Net interest income
|
||||||||
Segregated cash and securities, net
|
$
|
7
|
$
|
2
|
||||
Customer margin loans2
|
149
|
117
|
||||||
Securities borrowed and loaned, net
|
110
|
175
|
||||||
Customer credit balances, net2
|
9
|
9
|
||||||
Other net interest income1/3
|
8
|
9
|
||||||
Net interest income3
|
$
|
283
|
$
|
312
|
||||
Net interest margin ("NIM")
|
1.10%
|
1.26%
|
||||||
Annualized yields
|
||||||||
Segregated cash and securities
|
0.07%
|
0.02%
|
||||||
Customer margin loans
|
1.28%
|
1.19%
|
||||||
Customer credit balances
|
-0.04%
|
-0.05%
|
1
|
Represents the average amount of customer cash swept into FDIC-insured banks as part of our Insured Bank Deposit Sweep Program.
This item is not recorded in the Company's consolidated statements of financial condition. Income derived from program deposits is reported in other net interest income in the table above.
|
|||||||||||||
2
|
Interest income and interest expense on customer margin loans and customer credit balances, respectively, are calculated on daily
cash balances within each customer’s account on a net basis, which may result in an offset of balances across multiple account segments (e.g., between securities and commodities segments).
|
|||||||||||||
3
|
Includes income from financial instruments that has the same characteristics as interest, but is reported in other fees and
services and other income in the Company’s consolidated statements of comprehensive income. For the three months ended March 31, 2022 and 2021, $1 million and $8 million were reported in other fees and services, respectively. For
the three months ended March 31, 2022 and 2021, $0 million and -$1 million were reported in other income, respectively.
|
Three Months
|
|||||||
Ended March 31,
|
|||||||
2022
|
2021
|
||||||
(in millions)
|
|||||||
Adjusted net revenues1
|
|||||||
Net revenues - GAAP
|
$
|
645
|
$
|
893
|
|||
Non-GAAP adjustments
|
|||||||
Currency diversification strategy, net
|
18
|
2
|
|||||
Mark-to-market on investments2
|
29
|
(99)
|
|||||
Total non-GAAP adjustments
|
47
|
(97)
|
|||||
Adjusted net revenues
|
$
|
692
|
$
|
796
|
|||
Adjusted income before income taxes1
|
|||||||
Income before income taxes - GAAP
|
$
|
394
|
$
|
639
|
|||
Non-GAAP adjustments
|
|||||||
Currency diversification strategy, net
|
18
|
2
|
|||||
Mark-to-market on investments2
|
29
|
(99)
|
|||||
Total non-GAAP adjustments
|
47
|
(97)
|
|||||
Adjusted income before income taxes
|
$
|
441
|
$
|
542
|
|||
Adjusted pre-tax profit margin
|
64%
|
68%
|
Three Months
|
|||||||
Ended March 31,
|
|||||||
2022
|
2021
|
||||||
(in millions)
|
|||||||
Adjusted net income available for common stockholders1
|
|||||||
Net income available for common stockholders - GAAP
|
$
|
73
|
$
|
107
|
|||
Non-GAAP adjustments
|
|||||||
Currency diversification strategy, net
|
4
|
0
|
|||||
Mark-to-market on investments2
|
7
|
(22)
|
|||||
Income tax effect of above adjustments3
|
(2)
|
4
|
|||||
Total non-GAAP adjustments
|
9
|
(17)
|
|||||
Adjusted net income available for common stockholders
|
$
|
82
|
$
|
90
|
Three Months
|
|||||||
Ended March 31,
|
|||||||
2022
|
2021
|
||||||
(in dollars)
|
|||||||
Adjusted diluted EPS1
|
|||||||
Diluted EPS - GAAP
|
$
|
0.74
|
$
|
1.16
|
|||
Non-GAAP adjustments
|
|||||||
Currency diversification strategy, net
|
0.04
|
0.00
|
|||||
Mark-to-market on investments2
|
0.07
|
(0.24)
|
|||||
Income tax effect of above adjustments3
|
(0.02)
|
0.05
|
|||||
Total non-GAAP adjustments
|
0.09
|
(0.19)
|
|||||
Adjusted diluted EPS
|
$
|
0.82
|
$
|
0.98
|
|||
Diluted weighted average common shares outstanding
|
99,224,776
|
91,766,142
|
•
|
We define adjusted net revenues as net revenues adjusted to remove the effect of our currency diversification strategy and our net
mark-to-market gains (losses) on investments2.
|
•
|
We define adjusted income before income taxes as income before income taxes adjusted to remove the effect of our currency
diversification strategy and our net mark-to-market gains (losses) on investments.
|
•
|
We define adjusted net income available to common stockholders as net income available for common stockholders adjusted to remove
the after-tax effects attributable to IBG, Inc. of our currency diversification strategy and our mark-to-market gains (losses) on investments.
|
Document and Entity Information |
Apr. 19, 2022 |
---|---|
Cover [Abstract] | |
Document Type | 8-K |
Amendment Flag | false |
Document Period End Date | Apr. 19, 2022 |
Entity Registrant Name | Interactive Brokers Group, Inc. |
Entity Incorporation, State or Country Code | DE |
Entity File Number | 001-33440 |
Entity Tax Identification Number | 30-0390693 |
Entity Address, Address Line One | One Pickwick Plaza |
Entity Address, City or Town | Greenwich |
Entity Address, State or Province | CT |
Entity Address, Postal Zip Code | 06830 |
City Area Code | 203 |
Local Phone Number | 618-5800 |
Written Communications | false |
Soliciting Material | false |
Pre-commencement Tender Offer | false |
Pre-commencement Issuer Tender Offer | false |
Entity Emerging Growth Company | false |
Entity Central Index Key | 0001381197 |
Title of 12(b) Security | Class A common stock |
Trading Symbol | IBKR |
Security Exchange Name | NASDAQ |
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