INTERACTIVE BROKERS GROUP ANNOUNCES 1Q2024 RESULTS

— — —

GAAP DILUTED EPS OF $1.61, ADJUSTED1 EPS OF $1.64

GAAP NET REVENUES OF $1,203 MILLION, ADJUSTED NET REVENUES OF $1,216 MILLION

RAISES QUARTERLY DIVIDEND FROM $0.10 TO $0.25

GREENWICH, CT, April 16, 2024 — Interactive Brokers Group, Inc. (Nasdaq: IBKR), an automated global electronic broker, announced results for the quarter ended March 31, 2024.

Reported diluted earnings per share were $1.61 for the current quarter and $1.64 as adjusted. For the year-ago quarter, reported diluted earnings per share were $1.42 and $1.35 as adjusted.

Reported net revenues were $1,203 million for the current quarter and $1,216 million as adjusted. For the year-ago quarter, reported net revenues were $1,056 million and $1,015 million as adjusted.

Reported income before income taxes was $866 million for the current quarter and $879 million as adjusted. For the year-ago quarter, reported income before income taxes was $761 million and $720 million as adjusted.

Financial Highlights

•	Commission revenue increased 6% to $379 million. Customer trading volume was mixed across product types with options contract volume up 24%, while futures contract and stock share volumes were down 3% and 16%, respectively.

•	Net interest income increased 17% to $747 million on higher benchmark interest rates, customer margin loans and customer credit balances.

Other fees and services increased $16 million, or 37%, to $59 million, driven primarily by increases of $13 million in risk exposure fees and $2 million in FDIC sweeps fees.

•	Execution, clearing and distribution fees expenses increased 6% to $101 million, driven by higher customer trading volume in options.

•	Pretax profit margin for the current quarter was 72% both as reported and as adjusted. For the year-ago quarter, reported pretax margin was 72% and 71% as adjusted.

•	Total equity of $14.7 billion.

The Interactive Brokers Group, Inc. Board of Directors declared an increase in the quarterly cash dividend from $0.10 per share to $0.25 per share. This dividend is payable on June 14, 2024, to shareholders of record as of May 31, 2024.

1 See the reconciliation of non-GAAP financial measures starting on page 9.

Business Highlights

•	Customer accounts increased 25% to 2.75 million.

•	Customer equity increased 36% to $465.9 billion.

•	Total DARTs2 increased 14% to 2.35 million.

•	Customer credits increased 9% to $104.9 billion.

•	Customer margin loans increased 30% to $51.2 billion.

Other Items

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 $104 million, as the U.S. dollar value of the GLOBAL decreased by approximately 0.73%. The effects of the currency diversification strategy are reported as components of (1) Other Income (loss of $2 million) and (2) Other Comprehensive Income (loss of $102 million).

Conference Call Information:

Interactive Brokers Group, Inc. will hold a conference call with investors today, April 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 at https://register.vevent.com/register/BI26c88a82ea0c42b9a6ac91b51a30659c to obtain the dial-in details. 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. For the sixth consecutive year, Barron’s ranked Interactive Brokers #1 with 5 out of 5 stars in its June 9, 2023, Best Online Brokers Review.

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, investor-relations@ibkr.com or Media: Rob Garfield, media@ibkr.com.

2 Daily average revenue trades (DARTs) are based on customer orders.

(UNAUDITED)

				Three Months
				Ended March 31,
				2024			2023
				(in millions, except share and per share data)
Revenues:
	Commissions			$	379		$	357
	Other fees and services				59			43
	Other income				18			19
		Total non-interest income			456			419
	Interest income				1,760			1,347
	Interest expense				(1,013)			(710)
		Total net interest income			747			637
		Total net revenues			1,203			1,056
Non-interest expenses:
	Execution, clearing and distribution fees				101			95
	Employee compensation and benefits				145			128
	Occupancy, depreciation and amortization				26			24
	Communications				10			9
	General and administrative				50			36
	Customer bad debt				5			3
		Total non-interest expenses			337			295
Income before income taxes					866			761
Income tax expense					71			61
Net income					795			700
Net income attributable to noncontrolling interests					620			552
Net income available for common stockholders				$	175		$	148
Earnings per share:
	Basic			$	1.63		$	1.44
	Diluted			$	1.61		$	1.42
Weighted average common shares outstanding:
	Basic				107,070,830			102,958,660
	Diluted				108,149,440			104,042,571

(UNAUDITED)

				Three Months
				Ended March 31,
				2024			2023
				(in millions, except share and per share data)
Comprehensive income:
	Net income available for common stockholders			$	175		$	148
	Other comprehensive income:
		Cumulative translation adjustment, before income taxes			(26)			5
		Income taxes related to items of other comprehensive income			-			-
	Other comprehensive income (loss), net of tax				(26)			5
Comprehensive income available for common stockholders				$	149		$	153
Comprehensive earnings per share:
	Basic			$	1.39		$	1.48
	Diluted			$	1.37		$	1.47
Weighted average common shares outstanding:
	Basic				107,070,830			102,958,660
	Diluted				108,149,440			104,042,571
Comprehensive income attributable to noncontrolling interests:
	Net income attributable to noncontrolling interests			$	620		$	552
	Other comprehensive income - cumulative translation adjustment				(76)			14
Comprehensive income attributable to noncontrolling interests				$	544		$	566

(UNAUDITED)

					March 31, 2024			December 31, 2023
					(in millions)
Assets
Cash and cash equivalents					$	4,063		$	3,753
Cash - segregated for regulatory purposes						29,961			28,840
Securities - segregated for regulatory purposes						29,292			35,386
Securities borrowed						6,362			5,835
Securities purchased under agreements to resell						6,674			5,504
Financial instruments owned, at fair value						1,112			1,488
Receivables from customers, net of allowance for credit losses						51,395			44,472
Receivables from brokers, dealers and clearing organizations						1,684			1,643
Other assets						1,695			1,502
	Total assets				$	132,238		$	128,423
Liabilities and equity
Liabilities
Short-term borrowings					$	14		$	17
Securities loaned						14,216			11,347
Financial instruments sold but not yet purchased, at fair value						236			193
Other payables:
	Customers					101,197			101,012
	Brokers, dealers and clearing organizations					561			590
	Other payables					1,355			1,197
						103,113			102,799
	Total liabilities					117,579			114,356
Equity
Stockholders' equity						3,732			3,584
Noncontrolling interests						10,927			10,483
	Total equity					14,659			14,067
	Total liabilities and equity				$	132,238		$	128,423
		March 31, 2024				December 31, 2023
Ownership of IBG LLC Membership Interests		Interests		%		Interests			%
IBG, Inc.		107,099,483		25.4%		107,049,483			25.4%
Noncontrolling interests (IBG Holdings LLC)		313,976,354		74.6%		313,976,354			74.6%
Total IBG LLC membership interests		421,075,837		100.0%		421,025,837			100.0%

Year over Year			1Q2024			1Q2023		% Change
Total Accounts (in thousands)			2,746			2,195		25%
Customer Equity (in billions)1		$	465.9		$	343.1		36%
Total Customer DARTs (in thousands)			2,350			2,054		14%
Cleared Customers
Commission per Cleared Commissionable Order2		$	2.93		$	3.16		(7%)
Cleared Avg. DARTs per Account (Annualized)			197			214		(8%)
Consecutive Quarters			1Q2024			4Q2023		% Change
Total Accounts (in thousands)			2,746			2,562		7%
Customer Equity (in billions)1		$	465.9		$	426.0		9%
Total Customer DARTs (in thousands)			2,350			1,934		22%
Cleared Customers
Commission per Cleared Commissionable Order2		$	2.93		$	3.19		(8%)
Cleared Avg. DARTs per Account (Annualized)			197			172		15%

(UNAUDITED)

				Three Months
				Ended March 31,
				2024			2023
				(in millions)
Average interest-earning assets
	Segregated cash and securities			$	61,132		$	59,679
	Customer margin loans				46,653			39,303
	Securities borrowed				5,368			4,868
	Other interest-earning assets				9,952			9,777
	FDIC sweeps1				3,861			2,428
				$	126,966		$	116,055
Average interest-bearing liabilities
	Customer credit balances			$	99,510		$	95,802
	Securities loaned				11,734			8,571
	Other interest-bearing liabilities				-			1
				$	111,244		$	104,374
Net interest income
	Segregated cash and securities, net			$	764		$	603
	Customer margin loans2				678			477
	Securities borrowed and loaned, net				26			88
	Customer credit balances, net2				(881)			(653)
	Other net interest income1/3				175			125
		Net interest income3		$	762		$	640
Net interest margin ("NIM")					2.41%			2.24%
Annualized yields
	Segregated cash and securities				5.03%			4.10%
	Customer margin loans				5.85%			4.92%
	Customer credit balances				3.56%			2.76%

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES

(UNAUDITED)

			Three Months
			Ended March 31,
			2024			2023
			(in millions)
Adjusted net revenues1
Net revenues - GAAP			$	1,203		$	1,056
Non-GAAP adjustments
	Currency diversification strategy, net			2			(1)
	Mark-to-market on investments2			11			(40)
Total non-GAAP adjustments				13			(41)
Adjusted net revenues			$	1,216		$	1,015
Adjusted income before income taxes1
Income before income taxes - GAAP			$	866		$	761
Non-GAAP adjustments
	Currency diversification strategy, net			2			(1)
	Mark-to-market on investments2			11			(40)
Total non-GAAP adjustments				13			(41)
Adjusted income before income taxes			$	879		$	720
Adjusted pre-tax profit margin				72%			71%

			Three Months
			Ended March 31,
			2024			2023
			(in millions)
Adjusted net income available for common stockholders1
Net income available for common stockholders - GAAP			$	175		$	148
Non-GAAP adjustments
	Currency diversification strategy, net			0			0
	Mark-to-market on investments2			3			(10)
	Income tax effect of above adjustments3			(1)			2
Total non-GAAP adjustments				2			(8)
Adjusted net income available for common stockholders			$	177		$	140
Note: Amounts may not add due to rounding.

			Three Months
			Ended March 31,
			2024			2023
			(in dollars)
Adjusted diluted EPS1
Diluted EPS - GAAP			$	1.61		$	1.42
Non-GAAP adjustments
	Currency diversification strategy, net			0.00			(0.00)
	Mark-to-market on investments2			0.03			(0.09)
	Income tax effect of above adjustments3			(0.01)			0.02
Total non-GAAP adjustments				0.02			(0.07)
Adjusted diluted EPS			$	1.64		$	1.35
Diluted weighted average common shares outstanding				108,149,440			104,042,571
Note: Amounts may not add due to rounding.

Note: The term “GAAP” in the following explanation refers to generally accepted accounting principles in the United States.

1 Adjusted net revenues, adjusted income before income taxes, adjusted net income available for common stockholders and adjusted diluted earnings per share (“EPS”) are non-GAAP financial measures.

•	We define adjusted net revenues as net revenues adjusted to remove the effect of our currency diversification strategy and our net mark-to-market gains (losses) on investments2.

•	We define adjusted income before income taxes as income before income taxes adjusted to remove the effect of our currency diversification strategy and our net mark-to-market gains (losses) on investments.

•	We define adjusted net income available to common stockholders as net income available for common stockholders adjusted to remove the after-tax effects attributable to IBG, Inc. of our currency diversification strategy and our net mark-to-market gains (losses) on investments.

•	We define adjusted diluted EPS as adjusted net income available for common stockholders divided by the diluted weighted average number of shares outstanding for the period.

Management believes these non-GAAP items are important measures of our financial performance because they exclude certain items that may not be indicative of our core operating results and business outlook and may be useful to investors and analysts in evaluating the operating performance of the business and facilitating a meaningful comparison of our results in the current period to those in prior and future periods. Our currency diversification strategy and our mark-to-market on investments are excluded because management does not believe they are indicative of our underlying core business performance. Adjusted net revenues, adjusted income before income taxes, adjusted net income available to common stockholders and adjusted diluted EPS should be considered in addition to, rather than as a substitute for, GAAP net revenues, income before income taxes, net income attributable to common stockholders and diluted EPS.

2 Mark-to-market on investments represents the net mark-to-market gains (losses) on investments in equity securities that do not qualify for equity method accounting which are measured at fair value, on our U.S. government and municipal securities portfolio, which are typically held to maturity, and on certain other investments, including equity securities taken over by the Company from customers related to losses on margin loans.

3 The income tax effect is estimated using the statutory income tax rates applicable to the Company.