Interactive Brokers (IBKR) 8-K Results of Operations and Financial Condition

EXHIBIT 99.1

INTERACTIVE BROKERS GROUP ANNOUNCES 2Q2015 RESULTS

— — —

REPORTS COMPREHENSIVE EARNINGS PER SHARE OF $0.44,

INCOME BEFORE TAXES OF $240 MILLION ON $387 MILLION IN NET REVENUES,

AND EARNINGS PER SHARE ON NET INCOME OF $0.37.

DECLARES QUARTERLY DIVIDEND OF $0.10 PER SHARE.

GREENWICH, CONN, July 21, 2015 — Interactive Brokers Group, Inc. (NASDAQ GS: IBKR) an automated global electronic broker and market maker, today reported diluted earnings per share on a comprehensive basis of $0.44 for the quarter ended June 30, 2015, compared to diluted earnings per share on a comprehensive basis of $0.29 for the same period in 2014.

Excluding other comprehensive income, the Company reported diluted earnings per share of $0.37 for the quarter ended June 30, 2015, compared to diluted earnings per share of $0.26 for the same period in 2014.

Net revenues were $387 million and income before income taxes was $240 million this quarter, compared to net revenues of $309 million and income before income taxes of $174 million for the same period in 2014.

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, 2015 to shareholders of record as of September 1, 2015.

Business Highlights

· 65% Electronic Brokerage pretax profit margin for this quarter, up from 59% in the year-ago quarter.

· 42% Market Making pretax profit margin for this quarter, up from 37% in the year-ago quarter.

· Customer equity grew 22% from the year-ago quarter to $66.0 billion and customer debits increased by 23% to $19.0 billion.

· Customer accounts increased 18% from the year-ago quarter to 310 thousand.

· Total DARTs increased 16% from year-ago quarter to 616 thousand.

· Brokerage segment equity was $3.3 billion. Total equity was $5.2 billion.

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Segment Overview

Electronic Brokerage

Electronic Brokerage segment income before income taxes increased 42%, to $188 million, in the quarter ended June 30, 2015 compared to the same period last year, due to higher commissions revenue and net interest income.  Customer accounts grew 18% to 310 thousand and customer equity increased 22% to $66.0 billion from the year-ago quarter.

Commissions and execution fees increased 27% from the year-ago quarter, to $157 million.  Net interest income grew 34% from the year-ago quarter, to $106 million.  Pretax profit margin was 65% in quarter ended June 30, 2015, up from 59% in same period last year.

Total DARTs(1), for cleared and execution-only customers, increased 16% to 616 thousand from the year-ago quarter.  Cleared DARTs were 565 thousand, 17% higher than the same period last year.

Market Making

Market Making segment income before income taxes increased 15%, to $30 million, in the quarter ended June 30, 2015 compared to the same period last year, driven mainly by slightly higher volatility.  Pretax profit margin increased to 42% in the current quarter from 37% in same period last year.

Effects of Foreign Currency Diversification

In connection with our currency strategy, we have determined to base our net worth in GLOBALs, a basket of 16 major currencies in which we hold our equity.  In this quarter, our currency diversification strategy increased our comprehensive earnings by $53 million, as the U.S. dollar value of the GLOBAL increased by approximately 1.0%.  The effects of the currency diversification strategy are reported as components of (1) Other Income in the Corporate segment and (2) Other Comprehensive Income (“OCI”).  As previously disclosed, certain reclassifications have been made to previously reported amounts to conform to the current presentation of currency translation gains and losses related to our currency diversification strategy.

 (1)           Daily average revenue trades (DARTs) are based on customer orders.

_____________________

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Conference Call Information:

Interactive Brokers Group will hold a conference call with investors today, July 21, 2015, at 4:30 p.m. ET to discuss its quarterly results.  Investors who would like to listen to the conference call live should dial 877-324-1965 (U.S. domestic) and 631-291-4512 (international). The number should be dialed approximately ten minutes prior to the start of the conference call.  Ask for the “Interactive Brokers Conference Call.”

The conference call will also be accessible simultaneously, and through replays, as an audio webcast through the Investor Relations section of the Interactive Brokers web site, www.interactivebrokers.com/ir.

About Interactive Brokers Group, Inc.:

Interactive Brokers Group, Inc., together with its subsidiaries, is an automated global electronic broker that specializes in catering to financial professionals by offering state-of-the-art trading technology, superior execution capabilities, worldwide electronic access, and sophisticated risk management tools at exceptionally low costs.  The brokerage trading platform utilizes the same innovative technology as the Company’s market making business, which specializes in routing orders and executing and processing trades in securities, futures, foreign exchange instruments, bonds and funds on more than 100 electronic exchanges and trading venues around the world.  As a market maker, we provide liquidity at these marketplaces and, as a broker, we provide professional traders and investors with electronic access to stocks, options, futures, forex, bonds and mutual funds from a single IB Universal AccountSM.  Employing proprietary software on a global communications network, Interactive Brokers is continuously integrating its software with a growing number of exchanges and trading venues into one automatically functioning, computerized platform that requires minimal human intervention.

Cautionary Note Regarding Forward-Looking Statements:

The foregoing information contains certain forward-looking statements that reflect the Company’s current views with respect to certain current and future events and financial performance. These forward-looking statements are and will be, as the case may be, subject to many risks, uncertainties and factors relating to the Company’s operations and business environment which may cause the Company’s actual results to be materially different from any future results, expressed or implied, in these forward-looking statements. Any forward-looking statements in this release are based upon information available to the company on the date of this release. The company does not undertake to publicly update or revise its forward-looking statements even if experience or future changes make it clear that any statements expressed or implied therein will not be realized. Additional information on risk factors that could potentially affect the Company’s financial results may be found in the Company’s filings with the Securities and Exchange Commission.

For Interactive Brokers Group, Inc. Media: Caitlin Duffy, 203-913-1369 or Investors: Patrick Brennan, 203-618-4070.

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INTERACTIVE BROKERS GROUP, INC. AND SUBSIDIARIES

OPERATING DATA

TRADE VOLUMES:

(in 000's, except %)

					Brokerage
	Market		Brokerage		Non				Avg. Trades
	Making	%	Cleared	%	Cleared	%	Total	%	per U.S.
Period	Trades	Change	Trades	Change	Trades	Change	Trades	Change	Trading Day
2012	60,421		150,000		16,118		226,540		904
2013	65,320	8%	173,849	16%	18,489	15%	257,658	14%	1,029
2014	64,530	-1%	206,759	19%	18,055	-2%	289,344	12%	1,155
2Q2014	14,897		48,622		4,290		67,809		1,076
2Q2015	14,852	0%	58,458	20%	4,060	-5%	77,370	14%	1,228
1Q2015	15,404		58,208		4,581		78,193		1,282
2Q2015	14,852	-4%	58,458	0%	4,060	-11%	77,370	-1%	1,228

CONTRACT AND SHARE VOLUMES:

(in 000's, except %)

TOTAL

	Options	%	Futures*	%	Stocks	%
Period	(contracts)	Change	(contracts)	Change	(shares)	Change
2012	698,140		98,801		65,872,960
2013	659,673	-6%	121,776	23%	95,479,739	45%
2014	631,265	-4%	123,048	1%	153,613,174	61%
2Q2014	144,635		28,774		35,891,325
2Q2015	144,188	0%	34,661	20%	60,255,458	68%
1Q2015	154,289		33,612		35,336,325
2Q2015	144,188	-7%	34,661	3%	60,255,458	71%

MARKET MAKING

	Options	%	Futures*	%	Stocks	%
Period	(contracts)	Change	(contracts)	Change	(shares)	Change
2012	457,384		12,660		9,339,465
2013	404,490	-12%	18,184	44%	12,849,729	38%
2014	344,741	-15%	15,668	-14%	12,025,822	-6%
2Q2014	78,641		4,088		2,836,471
2Q2015	74,533	-5%	3,652	-11%	4,270,738	51%
1Q2015	83,013		3,408		2,969,719
2Q2015	74,533	-10%	3,652	7%	4,270,738	44%

BROKERAGE TOTAL

	Options	%	Futures*	%	Stocks	%
Period	(contracts)	Change	(contracts)	Change	(shares)	Change
2012	240,756		86,141		56,533,495
2013	255,183	6%	103,592	20%	82,630,010	46%
2014	286,524	12%	107,380	4%	141,587,352	71%
2Q2014	65,994		24,686		33,054,854
2Q2015	69,655	6%	31,009	26%	55,984,720	69%
1Q2015	71,276		30,204		32,366,606
2Q2015	69,655	-2%	31,009	3%	55,984,720	73%

* Includes options on futures

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INTERACTIVE BROKERS GROUP, INC. AND SUBSIDIARIES

OPERATING DATA, CONTINUED

BROKERAGE CLEARED

	Options	%	Futures*	%	Stocks	%
Period	(contracts)	Change	(contracts)	Change	(shares)	Change
2012	144,539		84,794		54,371,351
2013	180,660	25%	101,732	20%	78,829,785	45%
2014	225,662	25%	106,074	4%	137,153,132	74%
2Q2014	50,732		24,262		32,041,810
2Q2015	57,867	14%	30,717	27%	55,144,248	72%
1Q2015	58,537		29,824		31,418,644
2Q2015	57,867	-1%	30,717	3%	55,144,248	76%

* Includes options on futures

BROKERAGE STATISTICS

(in 000's, except % and where noted)

Year over Year		2Q2015		2Q2014	% Change
Total Accounts		310		262	18%
Customer Equity (in billions)*	$	66.0	$	53.9	22%
Cleared DARTs		565		484	17%
Total Customer DARTs		616		529	16%
Cleared Customers (in $'s, except DART per account)
Commission per DART	$	4.31	$	4.00	8%
DART per Avg. Account (Annualized)		469		473	-1%
Net Revenue per Avg. Account (Annualized)	$	3,749	$	3,360	12%
Consecutive Quarters		2Q2015		1Q2015	% Change
Total Accounts		310		296	5%
Customer Equity (in billions)*	$	66.0	$	61.2	8%
Cleared DARTs		565		590	-4%
Total Customer DARTs		616		648	-5%
Cleared Customers (in $'s, except DART per account)
Commission per DART	$	4.31	$	4.05	6%
DART per Avg. Account (Annualized)		469		513	-9%
Net Revenue per Avg. Account (Annualized)	$	3,749	$	4,079	-8%

* Excludes non-customers.

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INTERACTIVE BROKERS GROUP, INC. AND SUBSIDIARIES

SEGMENT FINANCIAL INFORMATION

(UNAUDITED)

			Three Months				Six Months
			Ended June 30,				Ended June 30,
			2015		2014		2015		2014
			(in millions)
Electronic Brokerage	Net revenues (1)	$	288	$	222	$	578	$	446
	Non-interest expenses		100		90		339		179
	Income before income taxes	$	188	$	132	$	239	$	267
	Pre-tax profit margin		65%		59%		41%		60%
Market Making	Net revenues (1)	$	72	$	71	$	139	$	182
	Non-interest expenses		42		45		82		90
	Income before income taxes	$	30	$	26	$	57	$	92
	Pre-tax profit margin		42%		37%		41%		51%
Corporate (2)	Net revenues (1)	$	27	$	16	$	(158)	$	36
	Non-interest expenses		5		-		9		3
	Income (loss) before income taxes	$	22	$	16	$	(167)	$	33
Total	Net revenues (1)	$	387	$	309	$	559	$	664
	Non-interest expenses		147		135		430		272
	Income before income taxes	$	240	$	174	$	129	$	392
	Pre-tax profit margin		62%		56%		23%		59%

 

(1)  To provide meaningful comparisons, prior period amounts have been revised for changes in the presentation of currency translation classifications.

(2)  Corporate includes corporate related activities as well as inter-segment eliminations.

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INTERACTIVE BROKERS GROUP, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(UNAUDITED)

				Three Months				Six Months
				Ended June 30,				Ended June 30,
				2015		2014		2015		2014
				(in millions, except share and per share data)
Revenues:
	Trading gains  (1)		$	67	$	64	$	129	$	169
	Commissions and execution fees			157		124		306		261
	Interest income (1)			126		96		234		183
	Other income (loss) (1)			55		37		(77)		77
		Total revenues		405		321		592		690
	Interest expense			18		12		33		26
		Total net revenues		387		309		559		664
Non-interest expenses:
	Execution and clearing			59		52		114		106
	Employee compensation and benefits			58		53		115		107
	Occupancy, depreciation and amortization			11		10		21		20
	Communications			7		6		13		12
	General and administrative			13		14		29		26
	Customer bad debt			(1)		-		138		1
		Total non-interest expenses		147		135		430		272
Income before income taxes				240		174		129		392
Income tax expense				19		13		17		30
Net income				221		161		112		362
Net income attributable to noncontrolling interests				198		146		102		328
Net income available for common stockholders			$	23	$	15	$	10	$	34
Earnings per share :
	Basic		$	0.38	$	0.27	$	0.17	$	0.62
	Diluted		$	0.37	$	0.26	$	0.17	$	0.60
Weighted average common shares outstanding:
	Basic			59,481,778		56,079,813		58,980,348		55,375,929
	Diluted			61,038,926		57,300,230		60,436,915		56,674,666
Comprehensive income:
	Net income available for common stockholders		$	23	$	15	$	10	$	34
	Other comprehensive income:
		Cumulative translation adjustment, before income taxes		4		2		3		2
		Income taxes related to items of other comprehensive income		-		-		-		-
	Other comprehensive income (loss), net of tax			4		2		3		2
Comprehensive income available for common stockholders			$	27	$	17	$	13	$	36
Comprehensive income attributable to noncontrolling interests:
Net income attributable to noncontrolling interests			$	198	$	146	$	102	$	328
Other comprehensive income - cumulative translation adjustment				24		9		15		12
Comprehensive income attributable to noncontrolling interests			$	222	$	155	$	117	$	340

(1) To provide meaningful comparisons, prior period amounts have been revised for changes in the presentation of currency translation classifications.

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INTERACTIVE BROKERS GROUP, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(UNAUDITED)

					June 30, 2015		December 31, 2014
				(in millions)
Assets
Cash and cash equivalents				$	1,041	$	1,269
Cash and securities - segregated for regulatory purposes					16,762		15,404
Securities borrowed					2,834		3,660
Securities purchased under agreements to resell					148		386
Trading assets, at fair value					3,613		3,934
Receivables from customers, net of allowance					19,002		17,051
Receivables from brokers, dealers and clearing organizations					1,205		1,131
Other assets					554		550
	Total assets			$	45,159	$	43,385
Liabilities and equity
Liabilities
Short-term borrowings				$	9	$	34
Securities loaned					3,141		3,199
Trading liabilities - financial instruments sold but not yet purchased, at fair value					2,183		2,561
Other payables:
	Customers				33,837		31,796
	Brokers, dealers and clearing organizations				376		234
	Other payables				379		377
					34,592		32,407
Equity
Stockholders' equity					774		766
Noncontrolling interests					4,460		4,418
	Total equity				5,234		5,184
	Total liabilities and equity			$	45,159	$	43,385
		June 30, 2015			December 31, 2014
Ownership of IBG LLC Membership Interests		Interests	%		Interests		%
IBG, Inc.		60,944,432	15.0%		58,473,186		14.5%
Noncontrolling interests (IBG Holdings LLC)		346,062,282	85.0%		346,062,282		85.5%
	Total IBG LLC membership interests	407,006,714	100.0%		404,535,468		100.0%

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INTERACTIVE BROKERS GROUP, INC. AND SUBSIDIARIES

EARNINGS PER SHARE ON COMPREHENSIVE INCOME

(UNAUDITED)

			Three Months				Six Months
			Ended June 30,				Ended June 30,
			2015		2014		2015		2014
			(in millions, except share and per share data)
Comprehensive income available for common stockholders, net of tax		$	27	$	17	$	13	$	36
Comprehensive income per share:
	Basic	$	0.45	$	0.30	$	0.22	$	0.65
	Diluted	$	0.44	$	0.29	$	0.21	$	0.64
Weighted average common shares outstanding:
	Basic		59,481,778		56,079,813		58,980,348		55,375,929
	Diluted		61,038,926		57,300,230		60,436,915		56,674,666

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