Interactive Brokers Group, Inc. · NASDAQ:IBKR
Interactive Brokers — Q3 2017 Earnings Presentation
19 slides from Interactive Brokers's earnings presentation, 2017
Slide 1: Interactive Brokers Group Investor Presentation Third Quarter 2017
Interactive Brokers Group Investor Presentation Third Quarter 2017
Slide 2: Disclaimer
Disclaimer The following 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, uncertai
Slide 3: Our Business Today
Our Business Today We began as a market maker in 1977 and used this technology and knowledge to launch our electronic brokerage business in 1993 Today, we are: Largest publicly-traded U.S. electronic broker as measured by DARTs Fastest organically-growing U.S. electronic broker as measured by cl
Slide 4: Who we are – Where we are going
Who we are Where we are going We aim to grow the following five market segments worldwide: Individuals Prop Trading Groups Hedge and Mutual Funds Registered Investment Advisors Introducing Brokers 3
Slide 5: Strong Balance Sheet
Strong Balance Sheet Since our IPO 10 years ago, we have maintained a strong and growing balance sheet At May 2007 At September 30, 2017 Long-term debt $0.3 billion $0 Total equity $2.8 billion $6.3 billion + $3.5 billion in dividends distributed since IPO Excess regulatory capital $1.2 billion $4.9
Slide 6: Corporate Strategy
Corporate Strategy Automation allows IB to be the lowest cost processor in our industry Majority of senior management are software engineers From account opening to the entire transaction lifecycle, our processes are automated As a result, we were able to execute, clear and settle over 1.1 mil
Slide 7: Diversified Enterprise
Diversified Enterprise Brokerage Brokerage Brokerage Year To Date Accounts Client Equity Commissions by Client 457K $116B $478M Individual traders Financial advisors and investors 24% 50% Individual traders and investors Financial advisors 36% 17% Proprietary trading groups 12% Proprietary Introduci
Slide 8: Client Geographic Distribution
Client Geographic Distribution Our clients reside in over 200 countries 7
Slide 9: Client Segment Distribution
Client Segment Distribution 8
Slide 10: Our Competitive Strengths
Our Competitive Strengths Low Cost & Breadth Superior Trading Best Execution of Product Technology Low execution costs: Clients can trade on 120+ Sophisticated market- U.S. Stock $0.0005 market centers in 26 maker designed to $0.0035/ share countries and 22 technology U.S. Options $0.15 cu
Slide 11: Our Competitive Strengths: Low Cost & Best Execution
Our Competitive Strengths The cost to buy or sell a security includes: IB provides: 1. Commissions charged by your broker 1. Low commission rates U.S. Stock $0.0005 to $0.0035/ share U.S. Options $0.15 to $0.70/ contract (1) 2. Execution fees charged by the exchanges 2. No mark up of exchange fe
Slide 12: Client All-in Execution Costs
Client All-in Execution Costs Interactive Brokers Reg.‐NMS Stock Trading Expense Summary basis 4.0 points 3.0 2.0 1.5 1.4 1.2 1.2 1.1 1.0 1.1 1.0 0.8 0.9 0.5 0.6 0.3 0.4 0.0 ‐1.0 ‐2.0 Tota l Commissions ‐3.0 & Fees Execution Cos t ‐4.0 Previous Oct '16 Nov '16 Dec '16 Jan '17 Feb '17 Mar '17 Apr '17
Slide 13: Cost Comparison
Cost Comparison Rated as “Low Cost Broker” 16 years in a row by Barron’s U.S. Margin Loan Rates Comparison* Commission Rates Comparison* Margin Loan Amount Equity Option Futures $25K $300K $1.5M $3.5M Trades Trades Trades $0.00 base Interactive Brokers 2.66% 2.32% 2.02% 1.78% $2.45 $1.70 $0.72 per c
Slide 14: Effect of IB's Low Margin Rates
Effect of IB’s Low Margin Rates Industry defined as IB, AMTD, SCHW, and ETFC 13
Slide 15: Brokerage Expansion
Brokerage Expansion Market leading growth in every key metric IB AMTD* ETFC SCHW 14 * AMTD purchased Scottrade 3Q17
Slide 16: Competition Metrics
Competition Metrics IBKR ETFC AMTD (1) SCHW 3-year 3-year 3-year Change To: 3-year 3Q2017 Change 3Q2017 Change 3Q2017 3Q17 2Q17 3Q2017 Change 3Q17 Brokerage Metrics (in thousands) ex-Scottrade 2 Number of accounts 457 68% 3,589 15% 11,004 75% 17% 10,565 14% Client equity (in billions) 3 $116 111% $3
Slide 17: Recent Enhancements and New Products
Recent Enhancements and New Products Interactive Brokers Debit Mastercard ® – Integrated financial management for our customers and advisors. Spend and borrow directly against your account and invest in securities on over 100 global exchanges. Insured Bank Deposit Sweep Program – Provides eligib
Slide 18: Investors' Marketplace
Investors’ Marketplace We are building a marketplace that brings investors, wealth managers and money managers together: 1,456 as of 10/12/17 Business Investing Research Technology Administration Development Advisors Research Software Vendors Administrators Advertising Firms Education & Programming
Slide 19: Recognized Industry Leader
Recognized Industry Leader IB’s multiple trading platforms, extensive suite of advanced trading tools, algos and order types continue to earn awards, year after year Winner 2017 Winner 2017 “Best Broker-Dealer “Best Prime Broker – Technology” Futures” Winner 2017 “Best Broker-Dealer Options”
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