Interactive Brokers Group Inc.
) Electronic Brokerage segment has announced significant
improvement in its monthly brokerage data for May 2012. The segment
under appraisal clears and settles trades globally for both
individual and institutional clients.
Interactive's total customer accounts improved 14% from the
prior-year month and 1% from the prior month to 198,100 in May.
Likewise, total customer Daily Average Revenue Trades (DARTs)
surged 7% from May 2011 and 9% from April 2012 to 449,000.
During May, Interactive recorded an upsurge in Cleared Customer
DARTs of 420,000 compared with 392,000 in May 2011and 383,000 in
April 2012. On an annualized basis, the company reported Cleared
Average DART per customer account of 534,000, down from 574,000 in
the comparable month last year but up from 492,000 recorded in the
Further, Interactive's total options contracts rose 9% from the
prior-year month and 13% from the prior month to 22,513 in the
month under review. Also, the company's futures contracts totaled
8,580, escalating 24% from 6,896 in the year-ago month and 25% from
6,890 in the previous month.
Interactive also released period-end statistics for customer
equity, customer credit balances and customer margin loan balances.
For the period ended May 2012, customer equity stood at $27.6
billion, growing 6% year over year, but falling 5%
Moreover, Interactive's Electronic Brokerage segment recorded
customer credit balances of $17.9 billion in the reported month,
increasing 4% year over year, but declining 5% sequentially.
However, the company's customer margin loan balances of $8.2
billion at May 2012-end fell 14% from $9.5 billion at May 2011-end
and 6% from $8.7 billion at the end of April 2012.
Interactive remains well positioned with a stable balance sheet,
robust capital base and high barriers to entry. Moreover, the
company's better-than-peer positioning and technological excellence
is relatively impressive. However, colossal expenses remain the
Despite continuous strong performances by Interactive's
Electronic Brokerage and the Market Making segments, we remain
cautious over the steady generation of adequate returns by its
Market Making segment in order to subsidize dividend payment. Also,
the company's dependence on IBG LLC and its wide international
exposure remain major causes of concern.
Currently, Interactive retains a Zacks #5 Rank, which translates
into a short-term Strong Sell rating. However, one of its peers,
Knight Capital Group Inc.
) retains a Zacks #3 Rank (short-term Hold rating).
INTERACTIVE BRK (IBKR): Free Stock Analysis
KNIGHT CAP GP (KCG): Free Stock Analysis Report
To read this article on Zacks.com click here.