Interactive Brokers Group, Inc. · NASDAQ:IBKR
Interactive Brokers — Goldman Sachs US Financial Services Conference 2023
24 slides from Interactive Brokers's conference presentation, Dec 6, 2023
Slide 1: Goldman Sachs US Financial Services Conference
Goldman Sachs US Financial Services Conference December 6, 2023 Interactive Brokers, LLC Member NYSE - FINRA - SIPC
Slide 2: Disclaimer
Disclaimer Non-GAAP Financial Measures We use certain non-GAAP financial measures as additional measures to enhance the understanding of our financial results. This presentation includes the following non- GAAP financial measures: adjusted net revenues, adjusted variable expenses, adjusted fixed exp
Slide 3: Financial Strength – Liquid and Growing
Financial Strength – Liquid and Growing1 • Over 99% of our balance sheet is comprised of liquid assets. September 2023 Total Membership Interests 421.0 million Held by management 314.0 74.6% & their affiliates Publicly held 107.0 25.4% Total Market Capitalization $36.4 billion Public float $9.3 • No
Slide 4: Strength and Security
Strength and Security Significantly low duration risk 54% of all client funds are in Treasury securities with low duration, all of which matured within 3 months as of September 30, 2023. The remaining 46% are held in bank deposits at the largest banks around the world. No external debt No off-ba
Slide 5: Company Overview
Company Overview 2.4mil +21% Client Accounts2 YoY2 Account Growth We Are a Highly Automated Electronic Broker $370B 1.9mil $13.3B Client Equity2 DARTs 3,4 Total Equity2 We use our proprietary technology and international market-maker experience to offer the lowest cost,1 seamless global access to mu
Slide 6: The IBKR Advantage
The IBKR Advantage Superior Technology Broad Product Offering Multiple desktop and mobile trading platforms powerful enough for Access to multiple products in multiple currencies professional traders but designed for everyone Single Uniform Platform to fund and trade in up to 27 currencies,
Slide 7: Cost Comparison
Cost Comparison US Margin Loan Rates Comparison2 $ 25K $ 300K $ 1.5M $ 3.5M IBKR Continues to be the “Lowest Cost Broker”1 Interactive Brokers 6.83% 6.50% 6.28% 6.17% E-Trade 13.70% 12.20% N/A N/A • IBKR clients recognize that they can maximize returns by minimizing their costs Fidelity 13.08% 11.83
Slide 8: Earn Interest on Instantly Available Cash Balances
Earn Interest on Instantly Available Cash Balances USD Interest Rate Comparison4 5 Interactive Brokers 4.83% • The U.S. credit interest rate is up to 4.83% for IBKR Pro and 3.83% for IBKR Lite 1 Bank of America 0.04% Citi 0.12% • Clients can earn market rate interest on their E-Trade 0.01% instantly
Slide 9: Impact of Automation
Impact of Automation Automation allows IBKR to be one of the lowest cost processors in the industry • Majority of senior management are software engineers, committed to automating as many processes as possible • From account opening through the entire transaction lifecycle, our processes are automat
Slide 10: FinTech vs Financial Services
FinTech vs Financial Services Financial Services FinTech IBKR Changes an existing Technology assists A class of its own, business model in existing business combining the best finance in a material model from both industries way ✓ ✓ Established Business Sustained Growth ✓ ✓ ✓ ✓ > 50% Pre-tax Margins
Slide 11: Broad, Global Addressable Market
Broad, Global Addressable Market • Interactive Brokers operates globally, in multiple currencies across multiple client segments, which significantly enhances our addressable market size • IBKR currently has customers in over 200 countries and territories, with over three-quarters located internatio
Slide 12: IBKR Growth Continues
IBKR Growth Continues1 Multiple factors, including increased interest in the More accounts on our platform have led to financial markets and the growing interconnectedness of more client assets held at IBKR. investors worldwide, have propelled account growth. 1. “Interactive Brokers Group” and “IBKR
Slide 13: IBKR Growth Continues
IBKR Growth Continues1 More accounts and client equity on our Margin loans are also above pre- This drives our superior, industry- highly automated platform mean higher pandemic levels. leading profit margins. activity, as seen in increased DART levels that remain above pre-pandemic levels. Adjusted
Slide 14: Diversified Client Base – by Client Type
Diversified Client Base – by Client Type1 As of September 30, 2023 Individuals Hedge and Mutual Funds Proprietary Trading Groups Financial Advisors Introducing Brokers 1. “Interactive Brokers Group” and “IBKR” include the Group’s operating subsidiaries. 14
Slide 15: Diversified Client Base – by Geography
Diversified Client Base – by Geography1 As of September 30, 2023 Americas Europe Asia-Pacific 1. “Interactive Brokers Group” and “IBKR” include the Group’s operating subsidiaries. 15
Slide 16: Sustainable Investing
Sustainable Investing The Impact Dashboard ensures that a client’s investments is aligned with their values. Impact Dashboard Interactive Brokers has a suite of environmental, social and IMPACT App governance (ESG) tools to ESG Scores develop a conscientious This standalone app adds Invest Responsib
Slide 17: IBKR GlobalTrader
IBKR GlobalTrader IBKR Scan the Globe for Undervalued Stocks. This helps in Global identifying new investment opportunities by comparing the prices Analyst and financial metrics of global stocks using the same currency. Deposit Make deposits in up to 27 different currencies, and Local automatically
Slide 18: Recent Enhancements and New Products
Recent Enhancements and New Products IBKR Desktop – A “built from the ground up” trading platform using a more modern UI framework with simplified navigation. It is the perfect alternative for active clients who prefer a more lightweight platform. It includes the most popular tools from the flagship
Slide 19: Recent Enhancements and New Products
Recent Enhancements and New Products “Cents of Security” Podcast – A podcast designed to help improve financial literacy for newer investors.1 Long-term investment (TBSZ) accounts in Hungary – Hungarian tax-resident clients can add a fixed-duration TBSZ account and take advantage of tax shelter bene
Slide 20: Recognized Industry Leader
Recognized Industry Leader 2023 BrokerChooser Best Online Brokers: Best Online Broker Best Stock Broker Best Broker for Day Trading 2023 Barron’s Award1: Best Broker for Investing Rated #1 - Best Online Broker (5 out of 5 stars) #1 for Best Online Broker in Singapore #1 for Online Brokers & Trading
Slide 21: Appendix
APPENDIX é InteractiveBrokers os
Slide 22: Pioneer in technology throughout the years
Pioneer in technology throughout the years Over four decades of developing our automated trading platforms allow us to be the lowest cost broker-dealer Launched IBUSOPT to help clients Ushered a new achieve better era of price execution Thomas Peterffy computerized Launched for options. buys a seat
Slide 23: Non-GAAP Reconciliation
Non-GAAP Reconciliation Year Ended December 31, Year Ended December 31, 2020 2021 2022 2020 2021 2022 (in millions) (in millions) Adjusted net revenues Adjusted variable expenses Net revenues - GAAP $ 2,218 $ 2,714 $ 3,067 Execution, clearing and distribution fees $ 293 $ 236 $ 324 Non-GAAP adjustme
Slide 24: Non-GAAP Reconciliation
Non-GAAP Reconciliation Quarter Ended 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 (in millions) Adjusted net revenues Net revenues - GAAP $ 548 $ 599 $ 893 $ 754 $ 464 $ 603 $ 645 $ 656 $ 790 $ 976 $ 1,056 $ 1,000 $ 1,145 Non-GAAP adjustments Currency diversification strategy, n
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