Interactive Brokers Group, Inc.’s (IBKR - Analyst Report) Electronic Brokerage segment witnessed both sequential and year-over-year improvement in brokerage metrics for Jun 2013. The segment clears and settles trade globally for both individual and institutional clients.
Total customer Daily Average Revenue Trades (DARTs) improved 26.7% from Jun 2012 and 4.3% from May 2013 to 531,000. Further, total customer accounts climbed 12.2% from the prior-year month and 0.9% from the prior month to stand at 224,300 currently.
Interactive recorded Cleared Customer DARTs of 482,000, increasing 23.3% from Jun 2012 and 3.7% from May 2013. Moreover, on an annualized basis, Cleared Average DART per customer account of 542,000 rose 9.9% from the comparable prior-year period and 2.7% from the previous month.
Additionally, Interactive’s total option contracts increased 4.0% from the year-ago month but declined 8.5% from the prior-month level to 21,240. Moreover, future contracts surged 20.2% from Jun 2012 and 2.8% from May 2013 to 10,104.
Interactive also reported period-end statistics for customer equity, customer credit balances and customer margin loan balances. For the period ended Jun 2013, customer equity stood at $37.4 billion, augmenting 30.8% year over year but declining 1.3% from the prior month.
Further, Interactive recorded customer credit balances of $22.7 billion in the month, increasing 23.4% from the Jun 2012 figure and flat with the prior-month level. Also, the company’s customer margin loan balances of $11.2 billion at the end of Jun 2013 surged 31.8% from $8.5 billion at the end of Jun 2012, and increased 0.9% from $11.1 billion at the end of May 2013.
Despite an improvement in the 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.
Currently, Interactive carries a Zacks Rank #5 (Strong Sell). Some better performing investment brokers include Ladenburg Thalmann Financial Services Inc. (LTS - Snapshot Report) with a Zacks Rank #1 (Strong Buy) and Cowen Group, Inc. and GAIN Capital Holdings, Inc. (GCAP - Snapshot Report) with a Zacks Rank #2 (Buy).