Q1 2024 Interactive Brokers Group Inc Earnings Call Transcript
Key Points
- Interactive Brokers Group Inc (IBKR) reported strong account growth, adding 184,000 new accounts in the first quarter, which is the second-highest ever after Q1 2021.
- Client equity increased by 36% to $466 billion, approaching half a trillion dollars in client assets.
- Commission revenue reached the second-highest level ever, only surpassed by the peak during the meme stock spike of Q1 2021.
- Net interest income reached a record high, contributing to total revenues reaching an all-time peak.
- Interactive Brokers Group Inc (IBKR) raised its quarterly dividend to $0.25, recognizing the company's strong financial position and confidence in future growth.
- Despite strong account growth, industry equities volumes are down again, following a similar pattern to 2023.
- Futures contract volumes and stock share volumes declined, in line with industry trends.
- Securities lending net interest was not as strong as in previous quarters due to a decrease in overall demand for shorting stocks and fewer hard-to-borrow names industry-wide.
- Interest on customer credit balances increased due to higher rates and balances, indicating higher costs for Interactive Brokers Group Inc (IBKR).
- The company faces challenges in the M&A space, with two large potential acquisitions not materializing due to disagreements on price.
Good day, and thank you for standing by, and welcome to Interactive Brokers Group First Quarter 2024 Earnings Conference Call. (Operator Instructions) Please be advised that today's conference is being recorded.
I would now like to hand the conference over to your speaker today, Nancy Stuebe, Director of Investor Relations. Please go ahead.
Good afternoon. and thank you for joining us for our first quarter 2024 earnings call. Joining us today are Thomas Peterffy, our Founder and Chairman; Milan Galik, our President and CEO; and Paul Brody, our CFO. I will be presenting Milan's comments on the business, and all 3 will be available at our Q&A.
As a reminder, today's call may include forward-looking statements, which represent the company's belief regarding future events, which, by their nature, are not certain and are outside of the company's control. Our actual results and financial condition may differ possibly materially from what is indicated in these forward-looking
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