Interactive Brokers Group, Inc.’s (IBKR - Analyst Report) Electronic Brokerage segment witnessed both sequential and year-over-year improvement in brokerage metrics for May 2013. The segment clears and settles trade globally for both individual and institutional clients.
Total customer Daily Average Revenue Trades (DARTs) improved 13% from May 2012 and 6% from Apr 2013 to 509,000. Further, total customer accounts climbed 12% from the prior-year month and 1% from the prior month to stand at 222,300 currently.
Interactive recorded Cleared Customer DARTs of 465,000, increasing 11% from May 2012 and 5% from Apr 2013. Moreover, on an annualized basis, Cleared Average DART per customer account of 528,000 decreased 1% from the comparable prior-year period and 4% from the previous month.
Additionally, Interactive’s total option contracts increased 3% from the year-ago month and 1% from the prior-month level to 23,201. Moreover, future contracts surged 15% from May 2012 and 3% from Apr 2013 to 9,832.
Interactive also reported period-end statistics for customer equity, customer credit balances and customer margin loan balances. For the period ended May 2013, customer equity stood at $37.9 billion, augmenting 37% year over year and 4% from the prior month.
Further, Interactive recorded customer credit balances of $22.7 billion in the month, increasing 27% from the Apr 2012 figure and remaining almost flat with the prior-month level. Also, the company’s customer margin loan balances of $11.1 billion at the end of May 2013 surged 35% from $8.2 billion at the end of May 2012, and increased 1% from $11.0 billion at the end of Apr 2013.
Despite an improvement in overall brokerage metrics, lower trading activities and fluctuating interest rates are expected to adversely affect the financials of the company going forward. Moreover, Interactive’s dependence on IBG LLC and its widespread exposure in the international market remain looming concerns.
Among other investment brokers, Knight Capital Group, Inc. (KCG - Snapshot Report) is scheduled to announce its May metrics in the first half of this month.
Currently, Interactive carries a Zacks Rank #3 (Hold). Some better performing investment brokers include Ladenburg Thalmann Financial Services Inc. (LTS - Snapshot Report) and LPL Financial Holdings Inc. (LPLA - Snapshot Report) . Both these stocks carry a Zacks Rank #1 (Strong Buy).