Interactive Brokers Group, Inc. · NASDAQ:IBKR
Interactive Brokers — 16th Annual Credit Suisse Financial Services Forum (February 2015)
18 slides from Interactive Brokers's conference presentation, Feb 10, 2015
Slide 1: 16th Annual Credit Suisse Financial Services Forum
16th Annual Credit Suisse Financial Services Forum February 10, 2015
Slide 2: Disclaimer
2 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, uncert
Slide 3: Agenda
3 Agenda I. Company Overview Our business today Diversified enterprise Our three key differentiators Comparative growth Financial strength II. Appendix Cost comparison Best execution Competition charts Brokerage growth charts Recognized industry leader
Slide 4: Our Business Today
4 Our Business Today Our company began as a market maker in 1977. We launched our brokerage business in 1993. Today, brokerage accounts for 84%(1) of Group pretax income. We are the largest U.S. electronic broker as measured by revenue trades Broad global reach: Access to 100+ markets in 24 coun
Slide 5: Diversified Enterprise
5 Diversified Enterprise Customer Equity Accounts by Region Customer $57B Equity at 12/31/14 12/31/14 $57B at 1/31/15 Introducing Other Hedge and brokers 10% mutual funds Europe & 6% 7% Africa 27% Our customers Proprietary U.S. trading groups Individual Asia reside in nearly traders and 42% 17% inve
Slide 6: Our Key Differentiators
6 Our Key Differentiators Low Cost & Breadth Superior Trading Best Execution of Product Technology Low execution costs: Customers can trade on Sophisticated market- Stocks $.0005 to 100+ market centers in 24 maker designed $.005/share countries and 21 technology Options $.15 to $.70 curren
Slide 7: Market Leading Growth
7 Market Leading Growth Customer Equity per Accounts Total DARTs Customer Equity* Account* 2013 2014 2013 2014 2013 2014 2013 2014 IBKR 14% 17% 21% 23% 39% 24% 22% 6% $191K $202K ETFC 3% 3% 20% 6% 30% 11% 30% 8% $57K $61K SCHW 1% 4% 8% 2% 15% 10% 14% 5% $199K $209K AMTD 4% 5% 22% 9% 24% 13% 20% 7% $
Slide 8: Financial Strength
8 Financial Strength Highly liquid Solid balance sheet $50 Dec 31, 2014: $43 billion total assets, 99% $45 $40 liquid $35 Low financial leverage Billions US$ $30 $25 $20 $15 Distributing capital from market making $10 $5 segment $0 2009 2010 2011 2012 2013 2014 Quarterly dividend of $0.10/shar
Slide 9: Appendix
Appendix d : @ Interactive Brokers
Slide 10: Low Commissions and Financing Rates
10 Low Commissions and Financing Rates Rated Lowest Margin Rates and Low Cost Broker 10 years in a row by Barron’s U.S. Margin Loan Rates Comparison (1) U.S. Commission Rates Comparison (1) (1) For more information please visit www.interactivebrokers.com
Slide 11: Forex – Our Customers are More Profitable
11 Forex – Our Customers are More Profitable Data provided by forexmagnates.com, includes the impact of any commissions Everybody says they provide best executions but only one can be best and only we can prove it. The same philosophy and technology that enables our clients to achieve superior forex
Slide 12: Effect of IB's Low Margin Rates
12 Effect of IB’s Low Margin Rates Dec. 2007 Dec. 2014 DecTotal 2007industry - $29 billion (1) Total industry margin = $29 Billion margin(1) = $51 Billion Dec 2014- $51 billion IB 6% AMTD AMTD IB 29% ETFC 23% 34% 25% SCHW SCHW 28% ETFC 40% 15% (1) Total industry includes IB, AMTD, SCHW & ETFC
Slide 13: Best Price Execution
13 Best Price Execution The IB SmartRoutingSM Advantage Net Dollar Price Improvement vs. Best Bid/Offer(1) – 1st Half 2014 Unlike other routers, IB SmartRoutingSM dynamically routes and re-routes all or parts of the order for optimal execution. We do NOT sell order flow to internalizers. Trans
Slide 14: Comparative Growth
14 Comparative Growth Making strong progress towards our goal of being the largest broker by profits Pretax Profits - Normalized to Q408 350% 300% 288% 250% 200% 150% 100% 50% 11% 0% 9% -50% -100% Interactive Brokers (1) Schwab TD Ameritrade (1) Brokerage segment only. 4Q13 excludes unusual item ($6
Slide 15: Year-over-year growth
15 Brokerage growth 300 14 60 $220 280 Customer Equity Customer Accounts Equity per Account (000's) 12 50 $200 260 Account Adds (000's) Customer Equity $B Accounts (000's) 240 10 40 $180 220 200 8 30 $160 180 6 20 $140 160 140 4 10 $120 120 100 2 0 $100 Accounts Accounts adds Equity Equity per accou
Slide 16: Customer Segment Shift
16 Customer Segment Shift Customer Customer Accounts Equity Commissions 157.9K 281.1K $22.1B $56.7B $386.8M $548.8M 3.7% 4.3% 1.1% 2.0% 0.5% 0.6% 5.9% 5.5% 7.4% 5.8% Introducing brokers 4.2% 3.7% 5.6% 7.4% 18.3% 20.0% 16.8% 17.8% 15.7% 16.9% Hedge and mutual funds 15.5% 18.6% 22.2% 28.0% Proprietary
Slide 17: Customer Geographic Shift
17 Customer Geographic Shift Customer Customer Accounts Equity Commissions 157.9K 281.1K $22.1B $56.7B $386.8M $548.8M 47.4% 42.0% 45.6% 44.2% 55.6% 50.5% 27.0% 21.3% 22.9% 27.2% 15.1% 19.5% 15.3% 20.7% 21.4% 15.8% 19.6% 15.9% 13.5% 17.8% 12.2% 9.5% 9.6% 10.4% Other Asia Europe & Africa U.S. Based o
Slide 18: Recognized Industry Leader
18 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 2014 "Best Broker-Dealer Overall" Winner 2014 "Best Winner 2014 Stock Broker-Dealer Brokerage Options" Winner 2014 F