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Interactive Brokers (IBKR) Reports Dismal August Metrics
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Interactive Brokers Group, Inc. (IBKR - Free Report) released its Aug 2016 brokerage metrics for its Electronic Brokerage segment. The segment deals with the clearance and settling of trades for both individual and institutional clients on a global basis.
Total client DARTs were 576,000, down 22% from Aug 2015 and 4% from Jul 2016. Further, it reported Cleared Client DARTs of 534,000, a dip of 20% from the prior-year month and 4% from the prior month. On an annualized basis, Cleared Average DARTs per customer account of 370,000 tumbled 30% from the year-ago period and 5% from the preceding month.
Interactive Brokers recorded total customer accounts of 365,300, up 15% from the prior-year month and 1% from the preceding month.
Interactive Brokers’ total option contracts were 21.0 million, dropping 32% from the prior-year month but up 4% from the prior month. Meanwhile, future contracts plunged 24% from Aug 2015, however inched up 1% from Jul 2016 to 9.3 million.
Interactive Brokers also provides data related to period-end statistics for client equity, credit balances and margin loan balances. For Aug 2016, client equity was $80.4 billion, surging 28% year over year and 5% from the previous month.
Also, Interactive Brokers recorded a client credit balance of $41.6 billion in the reported month, up 17% from Aug 2015 and 1% from Jul 2016. Further, the company’s customer margin loan balance of $16.3 billion was stable on a year-over-year basis, while it increased 3% from the prior 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 persists, strong trading activities are anticipated to accelerate the company’s top-line growth. However, the intensifying competitive environment can keep the company’s near-term profitability under pressure.
Currently, Interactive Brokers carries a Zacks Rank #3 (Hold).
Notably, monthly performance of other investment brokerage firms including The Charles Schwab Corporation (SCHW - Free Report) , E*TRADE Financial Corporation and TD Ameritrade Holding Corporation (AMTD - Free Report) are expected to be announced in the next couple of weeks.
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Interactive Brokers (IBKR) Reports Dismal August Metrics
Interactive Brokers Group, Inc. (IBKR - Free Report) released its Aug 2016 brokerage metrics for its Electronic Brokerage segment. The segment deals with the clearance and settling of trades for both individual and institutional clients on a global basis.
Total client DARTs were 576,000, down 22% from Aug 2015 and 4% from Jul 2016. Further, it reported Cleared Client DARTs of 534,000, a dip of 20% from the prior-year month and 4% from the prior month. On an annualized basis, Cleared Average DARTs per customer account of 370,000 tumbled 30% from the year-ago period and 5% from the preceding month.
Interactive Brokers recorded total customer accounts of 365,300, up 15% from the prior-year month and 1% from the preceding month.
Interactive Brokers’ total option contracts were 21.0 million, dropping 32% from the prior-year month but up 4% from the prior month. Meanwhile, future contracts plunged 24% from Aug 2015, however inched up 1% from Jul 2016 to 9.3 million.
Interactive Brokers also provides data related to period-end statistics for client equity, credit balances and margin loan balances. For Aug 2016, client equity was $80.4 billion, surging 28% year over year and 5% from the previous month.
Also, Interactive Brokers recorded a client credit balance of $41.6 billion in the reported month, up 17% from Aug 2015 and 1% from Jul 2016. Further, the company’s customer margin loan balance of $16.3 billion was stable on a year-over-year basis, while it increased 3% from the prior 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 persists, strong trading activities are anticipated to accelerate the company’s top-line growth. However, the intensifying competitive environment can keep the company’s near-term profitability under pressure.
Currently, Interactive Brokers carries a Zacks Rank #3 (Hold).
Notably, monthly performance of other investment brokerage firms including The Charles Schwab Corporation (SCHW - Free Report) , E*TRADE Financial Corporation and TD Ameritrade Holding Corporation (AMTD - Free Report) are expected to be announced in the next couple of weeks.
Confidential from Zacks
Beyond this Analyst Blog, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>