IBG, Inc.(US:IBKR)2025-11-05 21:19Financial Performance - For the quarter ended September 30, 2025, net revenues were $1,655 million, an increase from $1,365 million in the prior-year quarter, while income before income taxes rose to $1,312 million from $909 million[257]. - Total net revenues for Q3 2025 increased by $290 million, or 21%, to $1,655 million compared to Q3 2024[272]. - Net income available for common stockholders in Q3 2025 was $263 million, compared to $184 million in Q3 2024, reflecting a 43% increase[271]. - Consolidated income before income taxes for the current quarter increased by $403 million, or 44%, to $1,312 million compared to the prior-year quarter[307]. - Income before income taxes increased by $816 million, or 31%, to $3,471 million, with a pretax profit margin of 76% for the current nine-month period[341]. Revenue Sources - Commission revenue increased by 23% to $537 million, driven by a 67% increase in customer trading volume in stocks and a 27% increase in options trading volume[258]. - Total non-interest income for Q3 2025 was $688 million, up from $563 million in Q3 2024[271]. - Net interest income rose by 21% to $967 million, attributed to stronger securities lending activity and a 30% increase in margin loan balances[252][258]. - Other income increased by $29 million, or 52%, to $85 million, mainly driven by $42 million related to investing activities[277]. Customer Activity - Total customer Daily Average Revenue Trades (DARTs) increased by 34% to 3.6 million in Q3 2025 compared to 2.7 million in Q3 2024[267]. - Customer equity reached $757.5 billion in Q3 2025, a 40% increase from $541.5 billion in Q3 2024[267]. - Total accounts increased to 4,127 thousand in Q3 2025, representing a 32% year-over-year growth from 3,120 thousand in Q3 2024[267]. - Daily average revenue trades (DARTs) rose to 3,616 thousand in Q3 2025, a 34% increase from 2,703 thousand in Q3 2024[267]. Expenses and Costs - Non-interest expenses decreased by $113 million, or 25%, to $343 million, with general and administrative expenses dropping by $91 million[292]. - Employee compensation and benefits increased by $11 million, or 8%, to $156 million, with the average number of employees rising by 5% to 3,109[296]. - General and administrative expenses decreased by $70 million, or 27%, to $185 million, accounting for 4% of total net revenues, down from 7% in the prior-year period[335]. - Income tax expense increased by $51 million, or 68%, to $126 million, primarily due to higher income before taxes at operating subsidiaries outside the U.S.[304]. Market Conditions - U.S. market volatility, measured by the VIX, declined by 6% to an average of 16.0 in the current quarter[247]. - The U.S. Federal Reserve cut the benchmark federal funds rate by 25 basis points to a range of 4.00% to 4.25% during the current quarter[249]. - Approximately 25% of the company's equity was denominated in currencies other than the U.S. dollar as of September 30, 2025[259]. Assets and Equity - Total assets as of September 30, 2025, were $200.2 billion, with $198.7 billion, or 99.2%, considered liquid[351]. - Consolidated equity increased 22% to $19.5 billion as of September 30, 2025, from $16.0 billion as of September 30, 2024[356]. - Cash and cash equivalents held by non-U.S. operating subsidiaries increased to $2,073 million as of September 30, 2025, from $1,513 million as of December 31, 2024[355]. Future Projections - Executed order volumes for customers decreased by 9% to 483,015 in 2023, but are projected to increase by 37% to 661,666 in 2024[263]. - Options contract volumes increased by 12% to 1,020,736 in 2023, with a projected increase of 32% to 1,344,855 in 2024[264]. - Total customer stock share volumes decreased by 23% to 252,742,847 in 2023, but are expected to rise by 22% to 307,489,711 in 2024[264].