Interactive Brokers' (IBKR) May Metrics Improve Y/Y

Interactive Brokers Group, Inc.’s (NASDAQ:IBKR) Electronic Brokerage segment reported a rise in its brokerage metrics for May 2016 on a year-over-year basis. The segment deals with clearance and settling of trades for both individual and institutional clients on a global basis.

Total client DARTs were 641,000, up 4% from May 2015, but down 3% from Apr 2016. Further, total customer accounts were 352,600, up 15% from the prior-year month and 1% from the preceding month.

Interactive Brokers recorded Cleared Client DARTs of 591,000, up 4% from May 2015, but down 3% from Apr 2016. On an annualized basis, Cleared Average DARTs per customer account of 424,000 fell 9% from the year-ago period and 5% from the preceding month.

Interactive Brokers’ total option contracts were 20.5 million, down 9% from the prior-year month and 2% from the prior month. Meanwhile, future contracts rose 6% from May 2015 but decreased 3% from Apr 2016 to 10.2 million.

Interactive Brokers also provides data related to period-end statistics for client equity, credit balances and margin loan balances. For May 2016, client equity was $72.5 billion, up 9% year over year and 1% from the prior month.

Moreover, Interactive Brokers recorded a client credit balance of $39 billion in the reported month, up 15% from May 2015 and 1% from Apr 2016. However, the company’s customer margin loan balance of $15.1 billion declined 22% from the prior-year month and 3% from the preceding month.

We expect Interactive Brokers to see improvement in its monthly metrics, as the company remains well poised to gain from the volatility of the equity markets. If such a market scenario prevails, strong trading activities are anticipated to accelerate the company’s top-line growth.

Currently, Interactive Brokers carries a Zacks Rank #3 (Hold).

Notably, monthly performance of other investment brokerage firms including The Charles Schwab Corporation (NYSE:SCHW) , E*TRADE Financial Corporation (NASDAQ:ETFC) and TD Ameritrade Holding Corporation (NASDAQ:AMTD) are expected to be announced in the next couple of weeks.


E TRADE FINL CP (ETFC): Free Stock Analysis Report

SCHWAB(CHAS) (SCHW): Free Stock Analysis Report

INTERACTIVE BRK (IBKR): Free Stock Analysis Report

TD AMERITRADE (AMTD): Free Stock Analysis Report

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