Interactive Brokers Group (IBKR) Q4 2024 earnings summary

Executive summary

• Achieved record pre-tax income over $1 billion in Q4 and record net revenues over $5 billion for the year, with a 75% GAAP pre-tax margin in Q4 and 71% for the year, the highest in the industry.

• GAAP diluted EPS rose to $1.99, with adjusted EPS at $2.03, up from $1.48 and $1.52 year-over-year.

• Net revenues increased to $1,387M GAAP and $1,424M adjusted, up from $1,139M and $1,149M.

• Customer accounts grew 30% to 3.34M; client equity rose 33% year-over-year to $568.2B, surpassing $500B for the first time.

• Board declared a $0.25/share quarterly dividend, payable March 14, 2025.

Financial highlights

• Q4 commission revenues reached a record $477 million, up 37% year-over-year; full-year commissions were $1.7 billion, up 25%.

• Net interest income hit a quarterly record of $807 million and a yearly record of $3.1 billion, up 11% year-over-year.

• Other fees and services generated $81 million in Q4 and $280 million for the year, up 47% and 42% respectively.

• Pretax profit margin improved to 75% GAAP and 76% adjusted, from 72% last year.

• Total assets ended the year at $150.5 billion, up 17% year-over-year; firm equity rose 18% to $16.6 billion.

Outlook and guidance

• Expect steady account growth in 2025, supported by increased marketing and favorable market conditions.

• Fixed expense growth projected to remain at low double-digit levels, barring significant inflation.

• No plans for share repurchases; future dividend increases possible if stock price remains strong.

• Cautiously optimistic on crypto expansion, especially in the EU, pending regulatory clarity.

• Forward-looking statements caution on risks and uncertainties that may cause actual results to differ materially.