Interactive Brokers Group Inc.
) Electronic Brokerage segment announced a modest improvement in
brokerage metrics for December 2012 on a year-over-year basis.
The segment clears and settles trades globally for both
individual and institutional clients.
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Interactive's total customer Daily Average Revenue Trades (DARTs)
improved 6% from December 2011 but declined 10% from November
2012 to 395,000. Yet, total customer accounts climbed 11% from
the prior-year month and were in line with the prior month at
Interactive recorded Cleared Customer DARTs of 360,000,
increasing 5% from December 2011 but falling 13% from November
2012. Further, on an annualized basis, Cleared Average DART per
customer account of 431,000 plunged 6% from 459,000 in the
comparable month last year and 13% from 496,000 in the previous
Additionally, Interactive's total options contracts plummeted 7%
from the prior-year month and 12% from the prior month to 17,395
in the month under review. Futures contracts totaled 6,540,
increasing 3% from 6,365 in December 2011 but dipping 20% from
8,206 in November 2012.
Interactive also reported period-end statistics for customer
equity, customer credit balances and customer margin loan
balances. For the period ended December 2012, customer equity
stood at $32.9 billion, augmenting 31% year over year and 2% from
the prior month.
Interactive's Electronic Brokerage segment recorded customer
credit balances of $20.5 billion in the month, increasing 23%
year over year and remaining at par with the November 2012 level.
Also, the company's customer margin loan balances of $9.8 billion
at December 2012-end surged 40% from $7.0 billion at December
2011-end, and 2% from $9.6 billion at November 2012-end.
Although improvement is witnessed in overall brokerage metrics
from the last year, it is anticipated that lower trading
activities and fluctuating interest rates will continue to impact
the company's financials in the near term. In addition,
Interactive's dependence on IBG LLC and its wide international
exposure make us apprehensive.
One of Interactive's peers,
Knight Capital Group, Inc.
) is expected to announce its December metrics in the first half
of this month.
Currently, Interactive retains a Zacks #3 Rank, which translates
into a short-term Hold rating.