EXHIBIT 99.1
INTERACTIVE BROKERS GROUP ANNOUNCES 3Q2018 RESULTS
— — —
INCOME BEFORE TAXES OF $276 MILLION ON $439 MILLION IN NET REVENUES,
EARNINGS PER SHARE ON NET INCOME OF $0.51 AND EARNINGS PER SHARE
ON COMPREHENSIVE INCOME OF $0.50.
DECLARES QUARTERLY DIVIDEND OF $0.10 PER SHARE.
GREENWICH, CONN, October 16, 2018 — Interactive Brokers Group, Inc. (IEX: IBKR) an automated global electronic broker, reported diluted earnings per share on net income of $0.51 for the quarter ended September 30, 2018, compared to $0.43 for the same period in 2017, and diluted earnings per share on comprehensive income of $0.50 for the quarter, compared to $0.44 for the same period in 2017.
Net revenues were $439 million and income before income taxes was $276 million this quarter, compared to net revenues of $426 million and income before income taxes of $268 million for the same period in 2017. The results for the quarter were positively impacted by strong growth in net interest income, which increased $62 million, or 34%, and higher commissions, which increased $4 million, or 2% from the year-ago quarter. The increase in our results for this quarter were counterbalanced by a $50 million reversal on our currency diversification strategy, which swung from a $26 million gain in the year-ago quarter to a $24 million loss this quarter, and by the non-recurrence of an $11 million gain on the sale of our U.S. market making business in the year-ago quarter.
The Interactive Brokers Group, Inc. Board of Directors declared a quarterly cash dividend of $0.10 per share. This dividend is payable on December 14, 2018 to shareholders of record as of November 30, 2018.
Business Highlights
| · | 63% pretax profit margin for this quarter and the year-ago quarter. |
| · | 66% Electronic Brokerage pretax profit margin for this quarter, up from 61% in the year-ago quarter. |
| · | Customer equity grew 23% from the year-ago quarter to $142.5 billion and customer debits increased 22% to $30.7 billion. |
| · | Customer accounts increased 26% from the year-ago quarter to 576 thousand. |
| · | Total DARTs1 increased 10% from the year-ago quarter to 763 thousand. |
| · | Brokerage segment equity was $5.5 billion. Total equity was $6.9 billion. |
1 Daily average revenue trades (DARTs) are based on customer orders.
Segment Overview
Electronic Brokerage
Electronic brokerage segment income before income taxes increased 30%, to $292 million in the quarter ended September 30, 2018, compared to the same period last year. Net revenues increased 21% to $444 million on higher net interest income, other income, and commissions revenue.
Net interest income increased 37% as average customer credit and margin loan balances and benchmark interest rates increased from the year-ago quarter. Commissions revenue increased 2% from the year-ago quarter on higher customer DARTs in stocks and options, partially offset by a decrease in futures DARTs, from the year-ago quarter. Other income increased 31% on higher net mark-to-market gains on other investments and higher fees earned from our FDIC sweep program. Pretax profit margin was 66% for the quarter ended September 30, 2018, up from 61% in the same period last year.
Customer accounts grew 26% to 576 thousand and customer equity increased 23% from the year-ago quarter to $142.5 billion. Total DARTs for cleared and execution-only customers increased 10% to 763 thousand from the year-ago quarter. Cleared DARTs were 696 thousand, 8% higher than in the same period last year.
Market Making
Market making segment income before income taxes decreased 36%, to $7 million in the quarter ended September 30, 2018, as compared the year-ago quarter, primarily due to the non-recurrence of an $11 million gain recognized on the transfer of our U.S. market making business in the third quarter of 2017. The current quarter's results reflect lower operating costs on the remaining operations. In the third quarter of 2017 we completed the transfer of our U.S. options market making business to Two Sigma Securities, LLC and by year-end we had exited the majority of our market making activities outside the U.S.
Effects of Foreign Currency Diversification
In connection with our currency diversification strategy, we have determined to base our net worth in GLOBALs, a basket of 14 major currencies in which we hold our equity. In this quarter, our currency diversification strategy decreased our comprehensive earnings by $27 million, as the U.S. dollar value of the GLOBAL decreased by approximately 0.29%. 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").
Conference Call Information:
Interactive Brokers Group, Inc. will hold a conference call with investors today, October 16, 2018, 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 affiliates provide automated trade execution and custody of securities, commodities and foreign exchange around the clock on over 120 markets in numerous countries and currencies, from a single IB Universal AccountSM to customers worldwide. We service individual investors, hedge funds, proprietary trading groups, financial advisors and introducing brokers. Our four decades of focus on technology and automation has enabled us to equip our customers with a uniquely sophisticated platform to manage their investment portfolios at the lowest cost according to Barron's Best Online Brokers review, March 26, 2018. We strive to provide our customers with advantageous execution prices and trading, risk and portfolio management tools, research facilities and investment products, all at low or no cost, positioning them to achieve superior returns on investments.
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. Investors: Nancy Stuebe, 203-618-4070 or Media: Kalen Holliday, 203-913-1369.
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 |
| 2015 | | 65,937 | | | | 242,846 | | | | 18,769 | | | | 327,553 | | | | 1,305 |
| 2016 | | 64,038 | | (3%) | | 259,932 | | 7% | | 16,515 | | (12%) | | 340,485 | | 4% | | 1,354 |
| 2017 | | 31,282 | | (51%) | | 265,501 | | 2% | | 14,835 | | (10%) | | 311,618 | | (8%) | | 1,246 |
| | | | | | | | | | | | | | | | | | | |
| 3Q2017 | 6,834 | | | | 66,262 | | | | 3,698 | | | | 76,794 | | | | 1,229 |
| 3Q2018 | 4,795 | | (30%) | | 71,646 | | 8% | | 5,293 | | 43% | | 81,734 | | 6% | | 1,308 |
| | | | | | | | | | | | | | | | | | | |
| 2Q2018 | 4,575 | | | | 78,026 | | | | 4,641 | | | | 87,242 | | | | 1,363 |
| 3Q2018 | 4,795 | | 5% | | 71,646 | | (8%) | | 5,293 | | 14% | | 81,734 | | (6%) | | 1,308 |
CONTRACT AND SHARE VOLUMES:
| | | Options | | % | | Futures1 | | % | | Stocks | | % |
| Period | | (contracts) | | Change | | (contracts) | | Change | | (shares) | | Change |
| 2015 | | 634,388 | | | | 140,668 | | | | 172,742,520 | | |
| 2016 | | 572,834 | | (10%) | | 143,287 | | 2% | | 155,439,227 | | (10%) |
| 2017 | | 395,885 | | (31%) | | 124,123 | | (13%) | | 220,247,921 | | 42% |
| | | | | | | | | | | | | |
| 3Q2017 | 93,470 | | | | 31,508 | | | | 55,195,706 | | |
| 3Q2018 | 92,297 | | (1%) | | 29,936 | | (5%) | | 45,572,711 | | (17%) |
| | | | | | | | | | | | | |
| 2Q2018 | 93,253 | | | | 36,693 | | | | 51,370,386 | | |
| 3Q2018 | 92,297 | | (1%) | | 29,936 | | (18%) | | 45,572,711 | | (11%) |
MARKET MAKING| | | Options | | % | | Futures1 | | % | | Stocks | | % |
| Period | | (contracts) | | Change | | (contracts) | | Change | | (shares) | | Change |
| 2015 | | 335,406 | | | | 14,975 | | | | 15,376,076 | | |
| 2016 | | 307,377 | | (8%) | | 14,205 | | (5%) | | 13,082,887 | | (15%) |
| 2017 | | 102,025 | | (67%) | | 5,696 | | (60%) | | 7,139,622 | | (45%) |
| | | | | | | | | | | | | |
| 3Q2017 | 18,676 | | | | 1,040 | | | | 1,814,393 | | |
| 3Q2018 | 11,805 | | (37%) | | 758 | | (27%) | | 2,995,942 | | 65% |
| | | | | | | | | | | | | |
| 2Q2018 | 11,813 | | | | 756 | | | | 2,442,203 | | |
| 3Q2018 | 11,805 | | 0% | | 758 | | 0% | | 2,995,942 | | 23% |
BROKERAGE TOTAL| | | Options | | % | | Futures1 | | % | | Stocks | | % |
| Period | | (contracts) | | Change | | (contracts) | | Change | | (shares) | | Change |
| 2015 | | 298,982 | | | | 125,693 | | | | 157,366,444 | | |
| 2016 | | 265,457 | | (11%) | | 129,082 | | 3% | | 142,356,340 | | (10%) |
| 2017 | | 293,860 | | 11% | | 118,427 | | (8%) | | 213,108,299 | | 50% |
| | | | | | | | | | | | | |
| 3Q2017 | 74,794 | | | | 30,468 | | | | 53,381,313 | | |
| 3Q2018 | 80,492 | | 8% | | 29,178 | | (4%) | | 42,576,769 | | (20%) |
| | | | | | | | | | | | | |
| 2Q2018 | 81,440 | | | | 35,937 | | | | 48,928,183 | | |
| 3Q2018 | 80,492 | | (1%) | | 29,178 | | (19%) | | 42,576,769 | | (13%) |
1 | Includes options on futures. |
INTERACTIVE BROKERS GROUP, INC. AND SUBSIDIARIES
OPERATING DATA, CONTINUED
BROKERAGE CLEARED
| | | Options | | % | | Futures1 | | % | | Stocks | | % |
| Period | | (contracts) | | Change | | (contracts) | | Change | | (shares) | | Change |
| 2015 | | 244,356 | | | | 124,206 | | | | 153,443,988 | | |
| 2016 | | 227,413 | | (7%) | | 128,021 | | 3% | | 138,523,932 | | (10%) |
| 2017 | | 253,304 | | 11% | | 116,858 | | (9%) | | 209,435,662 | | 51% |
| | | | | | | | | | | | | |
| 3Q2017 | 64,363 | | | | 30,034 | | | | 52,515,806 | | |
| 3Q2018 | 70,233 | | 9% | | 28,922 | | (4%) | | 41,406,443 | | (21%) |
| | | | | | | | | | | | | |
| 2Q2018 | 71,873 | | | | 35,679 | | | | 47,840,126 | | |
| 3Q2018 | 70,233 | | (2%) | | 28,922 | | (19%) | | 41,406,443 | | (13%) |
1 | Includes options on futures. |
BROKERAGE STATISTICS(in 000's, except % and where noted)
| Year over Year | | 3Q2018 | | | 3Q2017 | | % Change |
| Total Accounts | | 576 | | | 457 | | 26% |
Customer Equity (in billions)1 | $ | 142.5 | | $ | 115.7 | | 23% |
| | | | | | | | |
| Cleared DARTs | | 696 | | | 646 | | 8% |
| Total Customer DARTs | | 763 | | | 695 | | 10% |
| | | | | | | | |
| Cleared Customers (in $'s, except DART per account) | | | | | |
| Commission per DART | $ | 3.78 | | $ | 3.96 | | (5%) |
| DART per Avg. Account (Annualized) | | 312 | | | 365 | | (15%) |
| Net Revenue per Avg. Account (Annualized) | $ | 3,109 | | $ | 3,249 | | (4%) |
| | | | | | | | |
| Consecutive Quarters | | 3Q2018 | | | 2Q2018 | | % Change |
| Total Accounts | | 576 | | | 542 | | 6% |
Customer Equity (in billions)1 | $ | 142.5 | | $ | 134.7 | | 6% |
| | | | | | | | |
| Cleared DARTs | | 696 | | | 739 | | (6%) |
| Total Customer DARTs | | 763 | | | 797 | | (4%) |
| | | | | | | | |
| Cleared Customers (in $'s, except DART per account) | | | | | |
| Commission per DART | $ | 3.78 | | $ | 3.86 | | (2%) |
| DART per Avg. Account (Annualized) | | 312 | | | 350 | | (11%) |
| Net Revenue per Avg. Account (Annualized) | $ | 3,109 | | $ | 3,190 | | (3%) |
INTERACTIVE BROKERS GROUP, INC. AND SUBSIDIARIES
NET INTEREST MARGIN
(UNAUDITED)
| | | | | Three Months | | Nine Months |
| | | | | Ended September 30, | | Ended September 30, |
| | | | | 2018 | | 2017 | | 2018 | | 2017 |
| | | | | | | | | | | | | | | |
| | | | | (in millions) |
| Average interest-earning assets | | | | | | | | | | | | |
| | Segregated cash and securities | | $ | 20,923 | | $ | 24,043 | | $ | 20,437 | | $ | 24,207 |
| | Customer margin loans | | | 29,339 | | | 24,132 | | | 29,599 | | | 22,017 |
| | Securities borrowed | | | 3,531 | | | 4,096 | | | 3,295 | | | 4,071 |
| | Other interest-earning assets | | | 4,371 | | | 3,155 | | | 4,208 | | | 2,748 |
| | FDIC sweeps1 | | | 1,423 | | | 63 | | | 1,122 | | | 52 |
| | | | | $ | 59,587 | | $ | 55,489 | | $ | 58,661 | | $ | 53,095 |
| | | | | | | | | | | | | | | |
| Average interest-bearing liabilities | | | | | | | | | | | | |
| | Customer credit balances | | $ | 48,544 | | $ | 46,910 | | $ | 47,954 | | $ | 44,901 |
| | Securities loaned | | | 3,882 | | | 3,964 | | | 4,068 | | | 3,765 |
| | | | | $ | 52,426 | | $ | 50,874 | | $ | 52,022 | | $ | 48,666 |
| | | | | | | | | | | | | | | |
| Net interest income | | | | | | | | | | | | |
| | Segregated cash and securities, net2/3 | $ | 91 | | $ | 60 | | $ | 233 | | $ | 143 |
| | Customer margin loans4 | | | 182 | | | 106 | | | 485 | | | 270 |
| | Securities borrowed and loaned, net | | | 33 | | | 42 | | | 116 | | | 112 |
| | Customer credit balances, net2/4 | | | (79) | | | (36) | | | (191) | | | (68) |
| | Other net interest income1/3/5 | | | 25 | | | 11 | | | 63 | | | 23 |
| | | Net interest income | | $ | 252 | | $ | 183 | | $ | 706 | | $ | 480 |
| | | | | | | | | | | | | | | |
| Net interest margin ("NIM") | | | 1.68% | | | 1.31% | | | 1.61% | | | 1.21% |
| | | | | | | | | | | | | | | |
| Annualized yields | | | | | | | | | | | | |
| | Segregated cash and securities | | | 1.73% | | | 0.99% | | | 1.52% | | | 0.79% |
| | Customer margin loans | | | 2.46% | | | 1.74% | | | 2.19% | | | 1.64% |
| | Customer credit balances | | | 0.65% | | | 0.30% | | | 0.53% | | | 0.20% |
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 | We have recategorized components of net interest income related to currencies with negative interest rates and as such, prior period amounts have been adjusted to conform to the current period presentation. For the quarter and nine months ended September 30, 2017, $4 million and $12 million has been recategorized from net interest income on "segregated cash and securities, net" to "customer credit balances, net", respectively. |
| | | | | | | | | | | | | | | |
3 | During the current quarter, we have reclassified certain components of net interest income related to investments in U.S. Treasury notes and reverse repurchase agreements and as such, prior period amounts have been adjusted to conform to the current period presentation. For the quarter and the nine months ended September 30, 2017, $2 million and $5 million has been reclassified from net interest income on "Segregated cash and securities, net" to "Other net interest income, net", respectively. For the quarters ended March 31, 2017, June 30, 2017, December 31, 2017, March 31, 2018, and June 30, 2018 the amounts reclassified were $1 million, $2 million, $3 million, $3 million, and $4 million, respectively. |
| | | | | | | | | | | | | | | |
4 | 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). |
| | | | | | | | | | | | | | | |
5 | Includes income from financial instruments which has the same characteristics as interest, but is reported in other income. |
INTERACTIVE BROKERS GROUP, INC. AND SUBSIDIARIES
SEGMENT FINANCIAL INFORMATION
(UNAUDITED)
| | | | Three Months | | Nine Months |
| | | | Ended September 30, | | Ended September 30, |
| | | | 2018 | | 2017 | | 2018 | | 2017 |
| | | | (in millions) |
| | | | | | | | | | | | | | |
| Electronic Brokerage | Net revenues | | $ | 444 | | $ | 367 | | $ | 1,352 | | $ | 1,015 |
| | Non-interest expenses | | | 152 | | | 142 | | | 486 | | | 407 |
| | | | | | | | | | | | | | |
| | Income before income taxes | | $ | 292 | | $ | 225 | | $ | 866 | | $ | 608 |
| | | | | | | | | | | | | | |
| | Pre-tax profit margin | | | 66% | | | 61% | | | 64% | | | 60% |
| | | | | | | | | | | | | | |
| Market Making | Net revenues | | $ | 16 | | $ | 30 | | $ | 59 | | $ | 61 |
| | Non-interest expenses | | | 9 | | | 19 | | | 34 | | | 96 |
| | | | | | | | | | | | | | |
| | Income (loss) before income taxes | | $ | 7 | | $ | 11 | | $ | 25 | | $ | (35) |
| | | | | | | | | | | | | | |
| | Pre-tax profit (loss) margin | | | 44% | | | 37% | | | 42% | | | (57%) |
| | | | | | | | | | | | | | |
Corporate 1 | Net revenues | | $ | (21) | | $ | 29 | | $ | - | | $ | 111 |
| | Non-interest expenses | | | 2 | | | (3) | | | 4 | | | (1) |
| | | | | | | | | | | | | | |
| | Income (loss) before income taxes | | $ | (23) | | $ | 32 | | $ | (4) | | $ | 112 |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| Total | Net revenues | | $ | 439 | | $ | 426 | | $ | 1,411 | | $ | 1,187 |
| | Non-interest expenses | | | 163 | | | 158 | | | 524 | | | 502 |
| | | | | | | | | | | | | | |
| | Income before income taxes | | $ | 276 | | $ | 268 | | $ | 887 | | $ | 685 |
| | | | | | | | | | | | | | |
| | Pre-tax profit margin | | | 63% | | | 63% | | | 63% | | | 58% |
1 | Corporate includes corporate related activities as well as inter-segment eliminations and gains and losses on positions held as part of our overall currency diversification strategy. |
INTERACTIVE BROKERS GROUP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(UNAUDITED)
| | | | | Three Months | | Nine Months |
| | | | | Ended September 30, | | Ended September 30, |
| | | | | 2018 | | 2017 | | 2018 | | 2017 |
| | | | | | (in millions, except share and per share data) |
| | | | | | | | | | | | | | | |
| Revenues: | | | | | | | | | | | | |
| | Commissions | | $ | 167 | | $ | 163 | | $ | 572 | | $ | 477 |
| | Interest income | | | 363 | | | 243 | | | 1,007 | | | 626 |
| | Trading gains | | | 7 | | | 11 | | | 32 | | | 26 |
| | Other income | | | 21 | | | 70 | | | 121 | | | 205 |
| | | | | | | | | | | | | | | |
| | | Total revenues | | | 558 | | | 487 | | | 1,732 | | | 1,334 |
| | | | | | | | | | | | | | | |
| | Interest expense | | | 119 | | | 61 | | | 321 | | | 147 |
| | | | | | | | | | | | | | | |
| | | Total net revenues | | | 439 | | | 426 | | | 1,411 | | | 1,187 |
| | | | | | | | | | | | | | | |
| Non-interest expenses: | | | | | | | | | | | | |
| | Execution and clearing | | | 57 | | | 61 | | | 196 | | | 185 |
| | Employee compensation and benefits | | | 63 | | | 64 | | | 201 | | | 192 |
| | Occupancy, depreciation and amortization | | | 12 | | | 11 | | | 35 | | | 34 |
| | Communications | | | 7 | | | 7 | | | 20 | | | 22 |
| | General and administrative | | | 25 | | | 15 | | | 70 | | | 67 |
| | Customer bad debt | | | (1) | | | - | | | 2 | | | 2 |
| | | | | | | | | | | | | | | |
| | | Total non-interest expenses | | | 163 | | | 158 | | | 524 | | | 502 |
| | | | | | | | | | | | | | | |
| Income before income taxes | | | 276 | | | 268 | | | 887 | | | 685 |
| | | | | | | | | | | | | | | |
| Income tax expense | | | 18 | | | 21 | | | 52 | | | 56 |
| | | | | | | | | | | | | | | |
| Net income | | | 258 | | | 247 | | | 835 | | | 629 |
| | | | | | | | | | | | | | | |
| Net income attributable to noncontrolling interests | | | 219 | | | 216 | | | 709 | | | 551 |
| | | | | | | | | | | | | | | |
| Net income available for common stockholders | | $ | 39 | | $ | 31 | | $ | 126 | | $ | 78 |
| | | | | | | | | | | | | | | |
| Earnings per share: | | | | | | | | | | | | |
| | Basic | | $ | 0.52 | | $ | 0.44 | | $ | 1.73 | | $ | 1.12 |
| | Diluted | | $ | 0.51 | | $ | 0.43 | | $ | 1.71 | | $ | 1.10 |
| | | | | | | | | | | | | | | |
| Weighted average common shares outstanding: | | | | | | | | | | | | |
| | Basic | | | 74,649,469 | | | 71,109,577 | | | 72,879,007 | | | 69,405,624 |
| | Diluted | | | 75,360,089 | | | 71,973,483 | | | 73,745,640 | | | 70,409,619 |
| | | | | | | | | | | | | | | |
| Comprehensive income: | | | | | | | | | | | | |
| | Net income available for common stockholders | | $ | 39 | | $ | 31 | | $ | 126 | | $ | 78 |
| | Other comprehensive income: | | | | | | | | | | | | |
| | | Cumulative translation adjustment, before income taxes | | (1) | | | 1 | | | (14) | | | 11 |
| | | Income taxes related to items of other comprehensive income | | - | | | - | | | (1) | | | - |
| | Other comprehensive income (loss), net of tax | | | (1) | | | 1 | | | (13) | | | 11 |
| Comprehensive income available for common stockholders | | $ | 38 | | $ | 32 | | $ | 113 | | $ | 89 |
| | | | | | | | | | | | | | | |
| Comprehensive income attributable to noncontrolling interests: | | | | | | | | | |
| | Net income attributable to noncontrolling interests | | $ | 219 | | $ | 216 | | $ | 709 | | $ | 551 |
| | Other comprehensive income - cumulative translation adjustment | | | (2) | | | 5 | | | (60) | | | 55 |
| Comprehensive income attributable to noncontrolling interests | $ | 217 | | $ | 221 | | $ | 649 | | $ | 606 |
| | | | | | | | | | | | | | | |
INTERACTIVE BROKERS GROUP, INC. AND SUBSIDIARIES
EARNINGS PER SHARE ON COMPREHENSIVE INCOME
(UNAUDITED)
| | | | | Three Months | | Nine Months |
| | | | | Ended September 30, | | Ended September 30, |
| | | | | 2018 | | 2017 | | 2018 | | 2017 |
| | | | | | (in millions, except share and per share data) |
| | | | | | | | | | | | | | | |
| Comprehensive income available for common stockholders, net of tax | $ | 38 | | $ | 32 | | $ | 113 | | $ | 89 |
| | | | | | | | | | | | | | | |
| Comprehensive earnings per share: | | | | | | | | | | | | |
| | Basic | | $ | 0.51 | | $ | 0.45 | | $ | 1.55 | | $ | 1.28 |
| | Diluted | | $ | 0.50 | | $ | 0.44 | | $ | 1.54 | | $ | 1.26 |
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
| Weighted average common shares outstanding: | | | | | | | | | | | | |
| | Basic | | | 74,649,469 | | | 71,109,577 | | | 72,879,007 | | | 69,405,624 |
| | Diluted | | | 75,360,089 | | | 71,973,483 | | | 73,745,640 | | | 70,409,619 |
INTERACTIVE BROKERS GROUP, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
| | | | | | | September 30, 2018 | | December 31, 2017 |
| | | | | | | (in millions) |
| | | | | | | | | | | |
| Assets | | | | | | | | | |
| Cash and cash equivalents | | | | | $ | 3,062 | | $ | 1,732 |
| Cash - segregated for regulatory purposes | | | | | | 7,523 | | | 6,547 |
| Securities - segregated for regulatory purposes | | | | | | 12,832 | | | 13,685 |
| Securities borrowed | | | | | | 3,551 | | | 2,957 |
| Securities purchased under agreements to resell | | | | | | 331 | | | 2,035 |
| Financial instruments owned, at fair value | | | | | | 2,588 | | | 3,154 |
| Receivables from customers, net of allowance for doubtful accounts | | | | | 30,913 | | | 29,821 |
| Receivables from brokers, dealers and clearing organizations | | | | | | 846 | | | 823 |
| Other assets | | | | | | 416 | | | 408 |
| | | | | | | | | | | |
| | Total assets | | | | | $ | 62,062 | | $ | 61,162 |
| | | | | | | | | | | |
| Liabilities and equity | | | | | | | | | |
| | | | | | | | | | | |
| Liabilities | | | | | | | | | |
| Short-term borrowings | | | | | $ | 28 | | $ | 15 |
| Securities loaned | | | | | | 3,834 | | | 4,444 |
| Securities sold under agreements to repurchase | | | | | | - | | | 1,316 |
| Financial instruments sold but not yet purchased, at fair value | | | | | | 915 | | | 767 |
| Other payables: | | | | | | | | | |
| | Customers | | | | | | 49,823 | | | 47,548 |
| | Brokers, dealers and clearing organizations | | | | | | 179 | | | 283 |
| | Other payables | | | | | | 380 | | | 356 |
| | | | | | | | 50,382 | | | 48,187 |
| | | | | | | | | | | |
| | Total liabilities | | | | | | 55,159 | | | 54,729 |
| | | | | | | | | | | |
| Equity | | | | | | | | | |
| Stockholders' equity | | | | | | 1,243 | | | 1,090 |
| Noncontrolling interests | | | | | | 5,660 | | | 5,343 |
| | Total equity | | | | | | 6,903 | | | 6,433 |
| | | | | | | | | | | |
| | Total liabilities and equity | | | | | $ | 62,062 | | $ | 61,162 |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | September 30, 2018 | | | December 31, 2017 |
| Ownership of IBG LLC Membership Interests | Interests | | % | | | Interests | | | % |
| | | | | | | | | | | |
| IBG, Inc. | 75,097,443 | | 18.1% | | | 71,479,604 | | | 17.4% |
| Noncontrolling interests (IBG Holdings LLC) | 338,691,717 | | 81.9% | | | 340,229,444 | | | 82.6% |
| | | | | | | | | | | |
| Total IBG LLC membership interests | 413,789,160 | | 100.0% | | | 411,709,048 | | | 100.0% |
| | | | | | | | | | | |
