Press release
Interactive Brokers Group Announces 2Q2020 Results
Diluted Earnings Per Share of $0.40, Adjusted Diluted Earnings Per Share of $0.57. Pretax Income of $222 Million on $539 Million in Net Revenues. Adjusted
About this update from Interactive Brokers Group, Inc.
[{"type":"text","content":"\nDiluted Earnings Per Share of $0.40, Adjusted Diluted Earnings Per Share of $0.57.\nPretax Income of $222 Million on $539 Million in Net Revenues.\nAdjusted Pretax Income of $310 Million on $523 Million in Adjusted Net Revenues1.\nDeclares Quarterly Dividend of $0.10 Per Share.\n\n GREENWICH, Conn.--(BUSINESS WIRE)--\nInteractive Brokers Group, Inc. (Nasdaq: IBKR), an automated global electronic broker, reported diluted earnings per share of $0.40 for the quarter ended June 30, 2020 compared to $0.43 for the same period in 2019, and adjusted diluted earnings per share of $0.57 for both this quarter and for the year-ago quarter.\n\n\nNet revenues were $539 million and income before income taxes was $222 million this quarter, compared to net revenues of $413 million and income before income taxes of $225 million for the same period in 2019. Adjusted net revenues were $523 million and adjusted income before income taxes was $310 million this quarter, compared to adjusted net revenues of $488 million and adjusted income before income taxes of $300 million for the same period in 2019.\n\n\nFinancial Highlights\n\n\n\nCommission revenue showed strong growth, increasing $98 million, or 55%, from the year-ago quarter on higher customer trading volumes within an active trading environment worldwide.\n\n\nNet interest income decreased $63 million, or 24%, from the year-ago quarter as the average Federal Funds effective rate decreased to 0.06% from 2.40% in the year-ago quarter.\n\n\nOther income increased $86 million from the year-ago quarter. This increase was mainly comprised of (1) $88 million related to our strategic investment in Up Fintech Holding Limited (“Tiger Brokers”), which swung to a $14 million mark-to-market gain this quarter from a $74 million mark-to-market loss in the same period in 2019; and (2) $22 million related to our currency diversification strategy, which gained $16 million this quarter compared to a loss of $6 million in the same period in 2019; partially offset by (3) $18 million related to our U.S. government securities portfolio, which swung to a $13 million mark-to-market loss this quarter from a $5 million mark-to-market gain in the same period in 2019.\n\n\nGeneral and administrative expenses increased $106 million from the year-ago quarter, primarily due to $103 million in expenses incurred to compensat...