Interactive Brokers, an automated global electronic broker, recently released its financials for the fourth quarter of 2022, ending on December 31, 2022, revealing an increase in revenues and profits compared to a year earlier.
More specifically, total net revenues for Q4 2022 came in at $976 million and $958 million as adjusted. For the year-ago quarter, reported net revenues were $603 million and $683 million as adjusted. Diluted earnings per share stood at $1.31 for the current quarter and $1.3 as adjusted. For the year-ago quarter, reported diluted earnings per share were $0.67 and $0.83 as adjusted.
In addition, reported income before income taxes was $689 million for the current quarter and $671 million as adjusted. For the year ago quarter, reported income before income taxes was $373 million and $453 million as adjusted.
In terms of commission revenue, Interactive Brokers reported that the number increased 3 percent to $331 million from the year-ago quarter on higher customer futures trading volume and larger average trade size in options, tempered by lower customer stock trading volume.
Net interest income increased 92 percent to $565 million on higher benchmark interest rates and customer credit balances, despite a decline in margin lending balances.
For the full year, Interactive Brokers’ total net revenues reached $3.067 billion, compared with $2.714 billion in the last year. Commission revenue decreased to $1.322 billion from $1.350 billion in 2021.