Global broker Interactive Brokers (IBKR.US) recently announced its second quarter 2022 financial results. According to the financial report, the company's Q2 net revenue was $656 million, compared with $754 million in the same period last year, down 13.0%. Adjusted net revenue was $717 million, below consensus of $746 million and $650 million a year earlier.
Net income attributable to common shareholders was $72 million, compared to $92 million in the same period last year, a decrease of 21.7%. Diluted earnings per share were $0.72, compared to $1.00 in the prior year period. Earnings per share on an adjusted basis were 84 cents, below consensus estimates of 90 cents and 82 cents a year ago.
By business, commission income increased 5% year-over-year to $322 million, down from $349 million in the prior quarter. Net interest income increased 27% year-over-year to $348 million, up from $282 million in the prior quarter.
Pretax profit margin was 60% in the second quarter, compared with 72% a year earlier. Adjusted pretax margin was 63%, compared with 67% in the year-ago quarter.
Customer accounts rose 36% from a year earlier to 1.92 million. Client assets fell 19% from a year earlier to $294.8 billion. The total number of average daily revenue transactions (DART) fell 6% from a year ago to 2.17 million.
After the earnings announcement, as of press time, Interactive Brokers shares fell 1.41 percent to $56.45 in after-hours trading on Tuesday.
The Securities and Exchange Commission cracks down on "out-of-channel" communications
Interactive Brokers said its financials in the last quarter were "impacted by the recent crackdown by the Securities and Exchange Commission on Wall Street firms' use of 'out-of-channel communications' in business transactions".