Interactive Brokers : Q2 2024 Press Release

INTERACTIVE BROKERS GROUP ANNOUNCES 2Q2024 RESULTS

- - -

GAAP DILUTED EPS OF $1.65, ADJUSTED1 EPS OF $1.76

GAAP NET REVENUES OF $1,230 MILLION, ADJUSTED NET REVENUES OF $1,290 MILLION

GREENWICH, CT, July 16, 2024 - Interactive Brokers Group, Inc. (Nasdaq: IBKR), an automated global electronic broker, announced results for the quarter ended June 30, 2024.

Reported diluted earnings per share were $1.65 for the current quarter and $1.76 as adjusted. For the year-ago quarter, reported diluted earnings per share were $1.20 and $1.32 as adjusted.

Reported net revenues were $1,230 million for the current quarter and $1,290 million as adjusted. For the year-ago quarter, reported net revenues were $1,000 million and $1,064 million as adjusted.

Reported income before income taxes was $880 million for the current quarter and $940 million as adjusted. For the year- ago quarter, reported income before income taxes was $652 million and $716 million as adjusted.

Financial Highlights

(All comparisons are to the year-ago quarter.)

• Commission revenue increased 26% to $406 million on higher customer trading volumes. Customer trading volume in options, stocks and futures increased 35%, 26% and 10%, respectively.
• Net interest income increased 14% to $792 million on higher benchmark interest rates, customer margin loans and customer credit balances.
• Other fees and services increased $21 million, or 45%, to $68 million, driven primarily by increases of $14 million in risk exposure fees and $3 million each in payments for order flow from exchange-mandated programs and FDIC sweep program fees.
• Execution, clearing and distribution fees expenses increased 24% to $115 million, driven by higher customer trading volumes and an increase in the SEC fee rate during the current quarter.
• Pretax profit margin for the current quarter was 72% as reported and 73% as adjusted. For the year-ago quarter, reported pretax margin was 65% and 67% as adjusted.
• Total equity of $15.2 billion.

The Interactive Brokers Group, Inc. Board of Directors declared a quarterly cash dividend of $0.25 per share. This dividend is payable on September 13, 2024, to shareholders of record as of August 30, 2024.

Business Highlights

(All comparisons are to the year-ago quarter.)

• Customer accounts increased 28% to 2.92 million.
• Customer equity increased 36% to $497.2 billion.
• Total DARTs2 increased 28% to 2.39 million.
• Customer credits increased 8% to $107.1 billion.
• Customer margin loans increased 32% to $55.1 billion.

1. See the reconciliation of non-GAAP financial measures starting on page 9.
2. Daily average revenue trades (DARTs) are based on customer orders.

1

Other Items

As previously disclosed, during the current quarter, we recognized a loss of approximately $48 million on positions taken over as customer accommodation due to a technical issue at the New York Stock Exchange that occurred on the morning of June 3, 2024.

In connection with our currency diversification strategy, we base our net worth in GLOBALs, a basket of 10 major currencies in which we hold our equity. In this quarter, our currency diversification strategy decreased our comprehensive earnings by $30 million, as the U.S. dollar value of the GLOBAL decreased by approximately 0.22%. The effects of the currency diversification strategy are reported as components of (1) Other Income (loss of $20 million) and (2) Other Comprehensive Income (loss of $10 million).

Conference Call Information:

Interactive Brokers Group, Inc. will hold a conference call with investors today, July 16, 2024, at 4:30 p.m. ET to discuss its quarterly results. Members of the public who would like to listen to the conference call should register athttps://register.vevent.com/register/BI9f2adf478d354c83b495036e581df05bto obtain the dial-indetails. The number should be dialed approximately ten minutes prior to the start of the conference call. The conference call will also be accessible simultaneously, and through replays, as an audio webcast through the Investor Relations section of the Interactive Brokers web site, www.interactivebrokers.com/ir.

About Interactive Brokers Group, Inc.:

Interactive Brokers Group affiliates provide automated trade execution and custody of securities, commodities, and foreign exchange around the clock on over 150 markets in numerous countries and currencies, from a single unified platform to clients worldwide. We serve individual investors, hedge funds, proprietary trading groups, financial advisors and introducing brokers. Our four decades of focus on technology and automation has enabled us to equip our clients with a uniquely sophisticated platform to manage their investment portfolios. We strive to provide our clients with advantageous execution prices and trading, risk and portfolio management tools, research facilities and investment products, all at low or no cost, positioning them to achieve superior returns on investments. Interactive Brokers has consistently earned recognition as a top broker, garnering multiple awards and accolades from respected industry sources such as Barron's, Investopedia, Stockbrokers.com, and many others.

Cautionary Note Regarding Forward-Looking Statements:

The foregoing 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, uncertainties and factors relating to the Company's operations and business environment which may cause the Company's actual results to be materially different from any future results, expressed or implied, in these forward-looking statements. Any forward-looking statements in this release are based upon information available to the Company on the date of this release. The Company does not undertake to publicly update or revise its forward-looking statements even if experience or future changes make it clear that any statements expressed or implied therein will not be realized. Additional information on risk factors that could potentially affect the Company's financial results may be found in the Company's filings with the Securities and Exchange Commission.

For Interactive Brokers Group, Inc. Investors: Nancy Stuebe, [e-mail] or Media: Rob Garfield, [e-mail].

2

INTERACTIVE BROKERS GROUP, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)

Revenues:
Commissions	$
Other fees and services
Other income (loss)
Total non-interest income
Interest income
Interest expense
Total net interest income
Total net revenues
Non-interest expenses:
Execution, clearing and distribution fees
Employee compensation and benefits
Occupancy, depreciation and amortization
Communications
General and administrative
Customer bad debt
Total non-interest expenses
Income before income taxes
Income tax expense
Net income
Net income attributable to noncontrolling interests
Net income available for common stockholders	$
Earnings per share:
Basic	$
Diluted	$
Weighted average common shares outstanding:
Basic
Diluted

Three Months					Six Months
Ended June 30,					Ended June 30,
2024				2023				2024				2023
	(in millions, except share		and per share data)
406	$	322	$	785	$	679
68				47				127				90
(36)				(63)				(18)				(44)
438				306				894				725
1,828				1,545				3,588				2,892
(1,036)				(851)				(2,049)				(1,561)
792				694				1,539				1,331
1,230
			1,000				2,433				2,056
115				93				216				188
146				136				291				264
25				25				51				49
10				10				20				19
52				85				102				121
2				(1)				7				2
350				348				687				643
880				652				1,746				1,413
71				51				142				112
809				601				1,604				1,301
630				476				1,250				1,028
179		$	125		$	354		$	273
1.67		$	1.21		$	3.30		$	2.65
1.65
	$	1.20		$	3.27		$	2.62
107,719,020				103,587,557				107,394,925				103,274,846
108,626,836				104,463,729				108,388,138				104,254,888

3

INTERACTIVE BROKERS GROUP, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED)

					Three Months								Six Months
					Ended June 30,								Ended June 30,
					2024						2023							2024							2023
									(in millions, except share and per share data)
Comprehensive income:
Net income available for common stockholders	$	179	$	125			$	354			$	273
Other comprehensive income:
Cumulative translation adjustment, before income taxes			(2)						7							(28)							12
Income taxes related to items of other comprehensive income			-						-							-							-
Other comprehensive income (loss), net of tax			(2)						7							(28)							12
Comprehensive income available for common stockholders		$	177			$	132					$	326					$	285
Comprehensive earnings per share:
Basic	$	1.64	$	1.28			$	3.03			$	2.76
Diluted		$	1.63				$	1.27						$	3.00						$	2.74
Weighted average common shares outstanding:
Basic			107,719,020						103,587,557							107,394,925							103,274,846
Diluted			108,626,836						104,463,729							108,388,138							104,254,888
Comprehensive income attributable to noncontrolling interests:
Net income attributable to noncontrolling interests	$	630	$	476			$	1,250			$	1,028
Other comprehensive income - cumulative translation adjustment			(8)						24							(84)							38
Comprehensive income attributable to noncontrolling interests		$	622		$	500				$	1,166				$	1,066

4

INTERACTIVE BROKERS GROUP, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (UNAUDITED)

		June 30,			December 31,
		2024			2023
		(in millions)
Assets
Cash and cash equivalents	$	3,918	$	3,753
Cash - segregated for regulatory purposes		31,370			28,840
Securities - segregated for regulatory purposes		28,318			35,386
Securities borrowed		6,218			5,835
Securities purchased under agreements to resell		6,211			5,504
Financial instruments owned, at fair value		1,766			1,488
Receivables from customers, net of allowance for credit losses		55,252			44,472
Receivables from brokers, dealers and clearing organizations		1,810			1,643
Other assets		1,785			1,502
Total assets	$	136,648	$	128,423
Liabilities and equity
Liabilities
Short-term borrowings	$	11	$	17
Securities loaned		15,682			11,347
Financial instruments sold but not yet purchased, at fair value		473			193
Other payables:
Customers		103,373			101,012
Brokers, dealers and clearing organizations		570			590
Other payables		1,355			1,197
Total liabilities		105,298			102,799
	121,464			114,356
Equity
Stockholders' equity		3,927			3,584
Noncontrolling interests		11,257			10,483
Total equity		15,184			14,067
Total liabilities and equity	$	136,648		$	128,423

Ownership of IBG LLC Membership Interests	June 30, 2024					December 31, 2023
Interests		%			Interests		%
IBG, Inc.	108,496,779			25.7%	107,049,483			25.4%
Noncontrolling interests (IBG Holdings LLC)	313,976,354			74.3%			313,976,354			74.6%
Total IBG LLC membership interests	422,473,133			100.0%	421,025,837			100.0%

5

INTERACTIVE BROKERS GROUP, INC. AND SUBSIDIARIES

OPERATING DATA

EXECUTED ORDER VOLUMES: (in 000's, except %)

Period	Customer	%	Principal	%	Total	%
Orders	Change	Orders	Change	Orders	Change
2021	646,440		27,334		673,774
2022	532,064	(18%)	26,966	(1%)	559,030	(17%)
2023	483,015	(9%)	29,712	10%	512,727	(8%)
2Q2023	115,611		6,836		122,447
2Q2024	150,292	30%	13,215	93%	163,507	34%
1Q2024	143,320		9,190		152,510
2Q2024	150,292	5%	13,215	44%	163,507	7%
CONTRACT AND SHARE VOLUMES:
(in 000's, except %)
TOTAL	Options	%	Futures1	%	Stocks	%
Period
(contracts)	Change	(contracts)	Change	(shares)	Change
2021	887,849		154,866		771,273,709
2022	908,415	2%	207,138	34%	330,035,586	(57%)
2023	1,020,736	12%	209,034	1%	252,742,847	(23%)
2Q2023	236,803		49,644		58,720,684
2Q2024	321,141	36%	55,171	11%	73,734,105	26%
1Q2024	307,593		54,046		64,027,092
2Q2024	321,141	4%	55,171	2%	73,734,105	15%
CUSTOMER	Options	%	Futures1	%	Stocks	%
Period
(contracts)	Change	(contracts)	Change	(shares)	Change
2021	852,169		152,787		766,211,726
2022	873,914	3%	203,933	33%	325,368,714	(58%)
2023	981,172	12%	206,073	1%	248,588,960	(24%)
2Q2023	227,884		49,040		57,711,637
2Q2024	308,298	35%	54,106	10%	72,480,534	26%
1Q2024	296,146		53,018		62,898,480
2Q2024	308,298	4%	54,106	2%	72,480,534	15%
PRINCIPAL TRANSACTIONS		Futures1
Period	Options	%	%	Stocks	%
(contracts)	Change	(contracts)	Change	(shares)	Change
2021	35,680		2,079		5,061,983
2022	34,501	(3%)	3,205	54%	4,666,872	(8%)
2023	39,564	15%	2,961	(8%)	4,153,887	(11%)
2Q2023	8,919		604		1,009,047
2Q2024	12,843	44%	1,065	76%	1,253,571	24%
1Q2024	11,447		1,028		1,128,612
2Q2024	12,843	12%	1,065	4%	1,253,571	11%

1 Includes options on futures

6

INTERACTIVE BROKERS GROUP, INC. AND SUBSIDIARIES

OPERATING DATA, CONTINUED

CUSTOMER STATISTICS
Year over Year		2Q2024			2Q2023			% Change
Total Accounts (in thousands)		2,924			2,290		28%
Customer Equity (in billions)1	$	497.2	$	365.0	36%
Total Customer DARTs (in thousands)		2,386			1,865	28%
Cleared Customers
Commission per Cleared Commissionable Order2	$	3.01	$	3.11	(3%)
Cleared Avg. DARTs per Account (Annualized)		187			186	1%
Consecutive Quarters		2Q2024			1Q2024			% Change
Total Accounts (in thousands)		2,924			2,746			6%
Customer Equity (in billions)1	$	497.2	$	465.9	7%
Total Customer DARTs (in thousands)		2,386			2,350	2%
Cleared Customers
Commission per Cleared Commissionable Order2	$	3.01	$	2.93	3%
Cleared Avg. DARTs per Account (Annualized)		187			197	(5%)

1. Excludes non-Customers.
2. Commissionable Order - a customer order that generates commissions.

7

INTERACTIVE BROKERS GROUP, INC. AND SUBSIDIARIES NET INTEREST MARGIN

(UNAUDITED)

		Three Months				Six Months
		Ended June 30,				Ended June 30,
		2024			2023			2024			2023
Average interest-earning assets		(in millions)
$	60,057	$	61,038	$	60,595	$	60,359
Segregated cash and securities
Customer margin loans		52,422			39,989			49,538			39,646
Securities borrowed		5,898			5,649			5,633			5,259
Other interest-earning assets		11,218			10,090			10,585			9,934
FDIC sweeps1		4,023			2,719			3,942			2,574
	$	133,618		$	119,485		$	130,292		$	117,770
Average interest-bearing liabilities
Customer credit balances	$	102,709	$	96,416	$	101,110	$	96,109
Securities loaned		13,688			9,729			12,711			9,150
Other interest-bearing liabilities		1			-			1			1
	$	116,398		$	106,145		$	113,821		$	105,260
Net interest income
Segregated cash and securities, net	$	740	$	700	$	1,504	$	1,303
Customer margin loans2		755			547			1,433			1,024
Securities borrowed and loaned, net		25			79			51			167
Customer credit balances, net2		(894)			(774)			(1,775)			(1,427)
Other net interest income1/3		179			145			354			270
Net interest income3	$	805	$	697	$	1,567	$	1,337
Net interest margin ("NIM")		2.42%			2.34%			2.42%			2.29%
Annualized yields
Segregated cash and securities		4.96%			4.60%			4.99%			4.35%
Customer margin loans		5.79%			5.49%			5.82%			5.21%
Customer credit balances		3.50%			3.22%			3.53%			2.99%

1 Represents the average amount of customer cash swept into FDIC-insured banks as part of our Insured Bank Deposit Sweep Program. This item is not recorded in

the Company's consolidated statements of financial condition. Income derived from program deposits is reported in other net interest income in the table above.

1. Interest income and interest expense on customer margin loans and customer credit balances, respectively, are calculated on daily cash balances within each customer's account on a net basis, which may result in an offset of balances across multiple account segments (e.g., between securities and commodities segments).
2. Includes income from financial instruments that has the same characteristics as interest, but is reported in other fees and services and other income in the Company's consolidated statements of comprehensive income. For the three and six months ended June 30, 2024 and 2023, $7 million, $13 million, $5 million, and $8 million were reported in other fees and services, respectively. For the three and six months ended June 30, 2024 and 2023, $6 million, $15 million, -$2 million, and -$2 million were reported in other income, respectively.

8

INTERACTIVE BROKERS GROUP, INC. AND SUBSIDIARIES RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (UNAUDITED)

		Three Months				Six Months
		Ended June 30,				Ended June 30,
	2024			2023				2024			2023
					(in millions)
Adjusted net revenues1
Net revenues - GAAP	$	1,230	$	1,000	$	2,433	$	2,056
Non-GAAP adjustments
Currency diversification strategy, net		20			55			22			54
Mark-to-market on investments2		40			9			51			(31)
Total non-GAAP adjustments
	60			64			73			23
Adjusted net revenues	$	1,290	$	1,064	$	2,506	$	2,079
Adjusted income before income taxes1
Income before income taxes - GAAP	$	880	$	652	$	1,746	$	1,413
Non-GAAP adjustments
Currency diversification strategy, net		20			55			22			54
Mark-to-market on investments2		40			9			51			(31)
Total non-GAAP adjustments		60			64			73			23
Adjusted income before income taxes	$	940	$	716	$	1,819	$	1,436
Adjusted pre-tax profit margin		73%			67%			73%			69%

9

Adjusted net income available for common stockholders1
Net income available for common stockholders - GAAP	$
Non-GAAP adjustments
Currency diversification strategy, net
Mark-to-market on investments2
Income tax effect of above adjustments3
Total non-GAAP adjustments
Adjusted net income available for common stockholders	$
Note: Amounts may not add due to rounding.

Adjusted diluted EPS1
Diluted EPS - GAAP	$
Non-GAAP adjustments
Currency diversification strategy, net
Mark-to-market on investments2
Income tax effect of above adjustments3
Total non-GAAP adjustments
Adjusted diluted EPS	$
Diluted weighted average common shares outstanding
Note: Amounts may not add due to rounding.

Three Months				Six Months
Ended June 30,			Ended June 30,
2024		2023			2024			2023
		(in millions)
179	$	125	$	354	$	273
5		14			5			14
10		2			13			(8)
(3)		(3)			(4)			(1)
12
	13			14			5
191	$	138		$	368		$	278

Three Months				Six Months
Ended June 30,			Ended June 30,
2024		2023			2024			2023
		(in dollars)
1.65	$	1.20	$	3.27	$	2.62
0.05		0.13			0.05			0.13
0.09		0.02			0.12			(0.07)
(0.03)		(0.03)			(0.04)			(0.01)
0.11
	0.12			0.13			0.04
1.76	$	1.32	$	3.40	$	2.67
108,626,836		104,463,729			108,388,138			104,254,888

10