Interactive Brokers' Q2 revenue declines despite a 36% increase in clients

Tuesday, Interactive Brokers (Nasdaq: IBKR) released its financial results for the second quarter of 2022, revealing net revenue of $656 million and an adjusted figure of $717 million. The net revenue decreased by 13 percent year-over-year, but the adjusted amount increased by 10.3 percent.

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The amount of money earned from commissions increased by 5% to $322 million. It was driven by the increased amount of client options and futures trading, as well as the decrease in stock volume.

In addition, the broker's net interest income climbed by 27 percent to $348 million. However, the revenue from other sources decreased by $175 million, resulting in a $57 million deficit. The loss of a number of non-recurring gains drove this sector into the red.

The broker's Q2 comprehensive earnings declined by $158 million due to its currency diversification strategy, which was reported as other revenues.

The broker concluded the quarter between April and June with a pre-tax income of $392 million, a decrease from the $541 million made during the same period the previous year. However, the revised figure increased from $437 million to $453 million.

In one year, the reported pre-tax profit margin decreased from 70 percent to 60 percent, while the adjusted number decreased from 67 percent to 63 percent.

Despite the stated reduction in net revenue and earnings, the American broker saw a strong quarter in terms of client metrics. By the conclusion of the quarter, the number of user accounts on the platform had climbed by 36 percent annually, reaching 1.92 million. In addition, consumer credits increased by 13% to $92.5 billion.

The overall number of DARTs for the quarter decreased by 6 percent to 2.17 million. The number of approved DARTs was 1.93 million, a decrease of 7 percent. In addition, client margin loans decreased by 13 percent to $42.6 billion.