Interactive Brokers Group, Inc. · NASDAQ:IBKR
Interactive Brokers — Q3 2020 Earnings Presentation
17 slides from Interactive Brokers's earnings presentation, 2020
Slide 1: Interactive Brokers Group Investor Presentation Third Quarter 2020
Interactive Brokers Group Investor Presentation Third Quarter 2020
Slide 2: Disclaimer
Disclaimer Cautionary Note Regarding Forward-Looking Statements 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
Slide 3: Financial Strength – Liquid and Growing
Financial Strength – Liquid and Growing At September 30, 2020 Total membership interests 416.7 million Held by management 337.7 million 81.0% Public shares 79.0 million 19.0% Total market capitalization $20.1 billion Public float $3.8 billion Cash and equivalents $3.3 billion Total debt (0 long-term
Slide 4: Company Overview
Company Overview We are a highly automated electronic broker We use our proprietary technology and international experience to offer low cost, seamless global access to multiple types of securities for both institutional and individual investors. > 135 33 23 Market Centers Countries Currencies Stock
Slide 5: The IBKR Advantage
The IBKR Advantage ▪ Seamless electronic market ▪ Access to multiple products in access to stocks, options, multiple currencies from a futures, forex, commodities, single Integrated Investment bonds, mutual funds and ETFs Management Account requires from a single Integrated experience and the abilit
Slide 6: Impact of Automation
Impact of Automation Automation allows IBKR to be the lowest cost processor in the industry From account opening We executed, cleared and Majority of senior through the entire settled over 2 million trades management are software transaction lifecycle, our per day in 3Q20, across engineers, committe
Slide 7: Cost Comparison: Continue to be Low Cost Broker
Cost Comparison Continue to be “Low Cost Broker” IBKR clients recognize that they can maximize returns by minimizing their costs Barron’s has recognized Interactive Brokers as the low cost broker 2002 through 20201 U.S. Margin Loan Rates Comparison2 $25K $300K $1.5M $3.5M Interactive Brokers 1.59% 1
Slide 8: Automation and Focusing on the Client Lead to Growth
Automation and Focusing on the Client Lead to Growth 8-year compound annual growth rate 8
Slide 9: Diversified Client Base – by Client Type
Diversified Client Base – by Client Type As of September 30, 2020 Accounts Client Equity 981 $233 thousand billion Latest 12 Months Commissions $990 million 9
Slide 10: Diversified Client Base – by Geography
Diversified Client Base – by Geography As of September 30, 2020 Accounts Client Equity 981 $233 thousand billion Latest 12 Months Commissions $990 million 10
Slide 11: Comparative Metrics
Comparative Metrics A sophisticated client base on a highly automated platform leads to more active accounts and lower costs, generating industry-leading profit margins IBKR ETFC1 AMTD2 SCHW 3-year 3-year 3-year 3-year 2Q2020 Change 2Q2020 Change 2Q2020 Change 2Q2020 Change 2Q20 Brokerage Metrics (i
Slide 12: Integrated Investment Management from One Account
Integrated Investment Management from One Account EARN BORROW SPEND INVEST Earn income on Borrow against your Spend using our Bill Invest in stocks, securities by lending account whenever Pay to pay any options, futures, out fully paid shares.1 needed at our expense, or use our forex, commodities, e
Slide 13: Recent Enhancements and New Products
Recent Enhancements and New Products Impact Dashboard – The Impact Dashboard allows investors to select the principles and practices most important to them, and then see how each investment in their portfolio moves them closer to or farther from their goals. The Dashboard helps investors evaluate th
Slide 14: Recognized Industry Leader
Recognized Industry Leader IBKR’s multiple trading platforms, extensive suite of advanced trading tools, algos and order types continue to earn awards, year after year. 2020 NerdWallet Awards: Best for Low-Cost Investing 2020 Barron’s Awards1: Best for Stock Trading Platform and Research Interactive
Slide 15: Appendix
Appendix 15 é InteractiveBrokers
Slide 16: Electronic Brokerage Non-GAAP Reconciliation
Electronic Brokerage Non-GAAP Reconciliation Year Ended December 31, 2015 2016 2017 2018 2019 (in millions) Adjusted net revenues Net revenues - GAAP $ 1,097 $ 1,239 $ 1,405 $ 1,842 $ 1,921 Non-GAAP adjustments Gain from hedging activities to offset losses related to the Swiss franc event (18) - - -
Slide 17: IBKR Trailing 12 Months Financials Reconciliation
IBKR Trailing 12 Months Financials Reconciliation Trailing 12 Months 2Q20 1 Adjusted net revenues Net revenues - GAAP 2,037 Non-GAAP adjustments Currency diversification strategy, net 68 2 Mark-to-market on investments 27 Total non-GAAP adjustments 95 Adjusted net revenues 2,132 1 Adjusted income be
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