•
|
Commission revenue increased 37% to $477 million on higher customer trading volumes. Customer trading volume in options and stocks increased 32% and 65%, respectively, while customer futures volume decreased by
3%.
|
•
|
Net interest income increased 11% to $807 million on higher average customer margin loans and customer credit balances.
|
•
|
Other fees and services increased $26 million, or 47%, to $81 million, led by increases of $14 million in risk exposure fees and $4 million in payments for order flow from exchange-mandated programs.
|
•
|
Execution, clearing and distribution fees expenses increased 15% to $115 million, driven by a higher SEC fee rate, a new FINRA Consolidated Audit Trail (“CAT”) fee initiated during the current quarter, and
higher customer trading volumes in options and stocks.
|
•
|
General and administrative expenses increased $14 million, or 31%, to $59 million, driven primarily by an increase of $9 million in advertising expenses.
|
•
|
Pretax profit margin for the current quarter was 75% as reported and 76% as adjusted. For the year-ago quarter, pretax margin was 72% both as reported and as adjusted.
|
•
|
Total equity of $16.6 billion.
|
•
|
Customer accounts increased 30% to 3.34 million.
|
•
|
Customer equity increased 33% to $568.2 billion.
|
•
|
Total DARTs2 increased 61% to 3.12 million.
|
•
|
Customer credits increased 15% to $119.7 billion.
|
•
|
Customer margin loans increased 45% to $64.2 billion.
|
Three Months
|
Twelve Months
|
|||||||||||||
Ended December 31,
|
Ended December 31,
|
|||||||||||||
2024
|
2023
|
2024
|
2023
|
|||||||||||
(in millions, except share and per share data)
|
||||||||||||||
Revenues:
|
||||||||||||||
Commissions
|
$
|
477
|
$
|
348
|
$
|
1,697
|
$
|
1,360
|
||||||
Other fees and services
|
81
|
55
|
280
|
197
|
||||||||||
Other income (loss)
|
22
|
6
|
60
|
(11)
|
||||||||||
Total non-interest income
|
580
|
409
|
2,037
|
1,546
|
||||||||||
Interest income
|
1,863
|
1,695
|
7,339
|
6,230
|
||||||||||
Interest expense
|
(1,056)
|
(965)
|
(4,191)
|
(3,436)
|
||||||||||
Total net interest income
|
807
|
730
|
3,148
|
2,794
|
||||||||||
Total net revenues
|
1,387
|
1,139
|
5,185
|
4,340
|
||||||||||
Non-interest expenses:
|
||||||||||||||
Execution, clearing and distribution fees
|
115
|
100
|
447
|
386
|
||||||||||
Employee compensation and benefits
|
138
|
136
|
574
|
527
|
||||||||||
Occupancy, depreciation and amortization
|
24
|
25
|
101
|
99
|
||||||||||
Communications
|
10
|
12
|
39
|
41
|
||||||||||
General and administrative
|
59
|
45
|
314
|
211
|
||||||||||
Customer bad debt
|
1
|
5
|
15
|
7
|
||||||||||
Total non-interest expenses
|
347
|
323
|
1,490
|
1,271
|
||||||||||
Income before income taxes
|
1,040
|
816
|
3,695
|
3,069
|
||||||||||
Income tax expense
|
71
|
77
|
288
|
257
|
||||||||||
Net income
|
969
|
739
|
3,407
|
2,812
|
||||||||||
Net income attributable to noncontrolling interests
|
752
|
579
|
2,652
|
2,212
|
||||||||||
Net income available for common stockholders
|
$
|
217
|
$
|
160
|
$
|
755
|
$
|
600
|
||||||
Earnings per share:
|
||||||||||||||
Basic
|
$
|
2.00
|
$
|
1.49
|
$
|
6.99
|
$
|
5.72
|
||||||
Diluted
|
$
|
1.99
|
$
|
1.48
|
$
|
6.93
|
$
|
5.67
|
||||||
Weighted average common shares outstanding:
|
||||||||||||||
Basic
|
108,885,363
|
107,021,836
|
108,112,199
|
104,965,050
|
||||||||||
Diluted
|
109,683,522
|
107,811,190
|
109,002,938
|
105,846,877
|
Three Months
|
Twelve Months
|
|||||||||||||
Ended December 31,
|
Ended December 31,
|
|||||||||||||
2024
|
2023
|
2024
|
2023
|
|||||||||||
(in millions, except share and per share data) |
||||||||||||||
Comprehensive income:
|
||||||||||||||
Net income available for common stockholders
|
$
|
217
|
$
|
160
|
$
|
755
|
$
|
600
|
||||||
Other comprehensive income:
|
||||||||||||||
Cumulative translation adjustment, before income taxes
|
(64)
|
37
|
(53)
|
30
|
||||||||||
Income taxes related to items of other comprehensive income
|
-
|
-
|
-
|
-
|
||||||||||
Other comprehensive income (loss), net of tax
|
(64)
|
37
|
(53)
|
30
|
||||||||||
Comprehensive income available for common stockholders
|
$
|
153
|
$
|
197
|
$
|
702
|
$
|
630
|
||||||
Comprehensive earnings per share:
|
||||||||||||||
Basic
|
$
|
1.42
|
$
|
1.84
|
$
|
6.50
|
$
|
6.00
|
||||||
Diluted
|
$
|
1.41
|
$
|
1.83
|
$
|
6.44
|
$
|
5.95
|
||||||
Weighted average common shares outstanding:
|
||||||||||||||
Basic
|
108,885,363
|
107,021,836
|
108,112,199
|
104,965,050
|
||||||||||
Diluted
|
109,683,522
|
107,811,190
|
109,002,938
|
105,846,877
|
||||||||||
Comprehensive income attributable to noncontrolling interests:
|
||||||||||||||
Net income attributable to noncontrolling interests
|
$
|
752
|
$
|
579
|
$
|
2,652
|
$
|
2,212
|
||||||
Other comprehensive income - cumulative translation adjustment
|
(184)
|
111
|
(154)
|
92
|
||||||||||
Comprehensive income attributable to noncontrolling interests
|
$
|
568
|
$
|
690
|
$
|
2,498
|
$
|
2,304
|
December 31,
2024
|
December 31,
2023
|
||||||||
(in millions)
|
|||||||||
Assets
|
|||||||||
Cash and cash equivalents
|
$
|
3,633
|
$
|
3,753
|
|||||
Cash - segregated for regulatory purposes
|
36,600
|
28,840
|
|||||||
Securities - segregated for regulatory purposes
|
27,846
|
35,386
|
|||||||
Securities borrowed
|
5,369
|
5,835
|
|||||||
Securities purchased under agreements to resell
|
6,575
|
5,504
|
|||||||
Financial instruments owned, at fair value
|
1,924
|
1,488
|
|||||||
Receivables from customers, net of allowance for credit losses
|
64,432
|
44,472
|
|||||||
Receivables from brokers, dealers and clearing organizations
|
2,196
|
1,643
|
|||||||
Other assets
|
1,943
|
1,502
|
|||||||
Total assets
|
$
|
150,518
|
$
|
128,423
|
|||||
Liabilities and equity
|
|||||||||
Liabilities
|
|||||||||
Short-term borrowings
|
$
|
14
|
$
|
17
|
|||||
Securities loaned
|
16,248
|
11,347
|
|||||||
Financial instruments sold but not yet purchased, at fair value
|
293
|
193
|
|||||||
Other payables:
|
|||||||||
Customers
|
115,343
|
101,012
|
|||||||
Brokers, dealers and clearing organizations
|
476
|
590
|
|||||||
Other payables
|
1,547
|
1,197
|
|||||||
117,366
|
102,799
|
||||||||
Total liabilities
|
133,921
|
114,356
|
|||||||
Equity
|
|||||||||
Stockholders' equity
|
4,280
|
3,584
|
|||||||
Noncontrolling interests
|
12,317
|
10,483
|
|||||||
Total equity
|
16,597
|
14,067
|
|||||||
Total liabilities and equity
|
$
|
150,518
|
$
|
128,423
|
|||||
December 31, 2024
|
December 31, 2023
|
||||||||
Ownership of IBG LLC Membership Interests
|
Interests
|
%
|
Interests
|
%
|
|||||
IBG, Inc.
|
108,931,614
|
25.8%
|
107,049,483
|
25.4%
|
|||||
Noncontrolling interests (IBG Holdings LLC)
|
313,643,354
|
74.2%
|
313,976,354
|
74.6%
|
|||||
Total IBG LLC membership interests
|
422,574,968
|
100.0%
|
421,025,837
|
100.0%
|
Customer
|
%
|
Principal
|
%
|
Total
|
%
|
|||||||
Period
|
Orders
|
Change
|
Orders
|
Change
|
Orders
|
Change
|
||||||
2022
|
532,064
|
26,966
|
559,030
|
|||||||||
2023
|
483,015
|
(9%)
|
29,712
|
10%
|
512,727
|
(8%)
|
||||||
2024
|
661,666
|
37%
|
63,348
|
113%
|
725,014
|
41%
|
||||||
4Q2023
|
120,886
|
7,932
|
128,818
|
|||||||||
4Q2024
|
196,433
|
62%
|
23,220
|
193%
|
219,653
|
71%
|
||||||
3Q2024
|
171,620
|
17,722
|
189,342
|
|||||||||
4Q2024
|
196,433
|
14%
|
23,220
|
31%
|
219,653
|
16%
|
Options
|
%
|
Futures1
|
%
|
Stocks
|
%
|
|||||||
Period
|
(contracts)
|
Change
|
(contracts)
|
Change
|
(shares)
|
Change
|
||||||
2022
|
908,415
|
207,138
|
330,035,586
|
|||||||||
2023
|
1,020,736
|
12%
|
209,034
|
1%
|
252,742,847
|
(23%)
|
||||||
2024
|
1,344,855
|
32%
|
218,327
|
4%
|
307,489,711
|
22%
|
||||||
4Q2023
|
279,945
|
53,883
|
59,046,908
|
|||||||||
4Q2024
|
371,684
|
33%
|
52,285
|
(3%)
|
97,610,745
|
65%
|
||||||
3Q2024
|
344,540
|
56,825
|
72,117,769
|
|||||||||
4Q2024
|
371,684
|
8%
|
52,285
|
(8%)
|
97,610,745
|
35%
|
Options
|
%
|
Futures1
|
%
|
Stocks
|
%
|
|||||||
Period
|
(contracts)
|
Change
|
(contracts)
|
Change
|
(shares)
|
Change
|
||||||
2022
|
873,914
|
203,933
|
325,368,714
|
|||||||||
2023
|
981,172
|
12%
|
206,073
|
1%
|
248,588,960
|
(24%)
|
||||||
2024
|
1,290,770
|
32%
|
214,864
|
4%
|
302,040,873
|
22%
|
||||||
4Q2023
|
269,082
|
52,996
|
58,112,082
|
|||||||||
4Q2024
|
356,255
|
32%
|
51,662
|
(3%)
|
95,910,447
|
65%
|
||||||
3Q2024
|
330,173
|
56,078
|
70,751,412
|
|||||||||
4Q2024
|
356,255
|
8%
|
51,662
|
(8%)
|
95,910,447
|
36%
|
Options
|
%
|
Futures1
|
%
|
Stocks
|
%
|
|||||||
Period
|
(contracts)
|
Change
|
(contracts)
|
Change
|
(shares)
|
Change
|
||||||
2022
|
34,501
|
3,205
|
4,666,872
|
|||||||||
2023
|
39,564
|
15%
|
2,961
|
(8%)
|
4,153,887
|
(11%)
|
||||||
2024
|
54,085
|
37%
|
3,463
|
17%
|
5,448,838
|
31%
|
||||||
4Q2023
|
10,863
|
887
|
934,826
|
|||||||||
4Q2024
|
15,429
|
42%
|
623
|
(30%)
|
1,700,298
|
82%
|
||||||
3Q2024
|
14,367
|
747
|
1,366,357
|
|||||||||
4Q2024
|
15,429
|
7%
|
623
|
(17%)
|
1,700,298
|
24%
|
1
|
Includes options on futures.
|
CUSTOMER STATISTICS
|
||||||||
Year over Year
|
4Q2024
|
4Q2023
|
% Change
|
|||||
Total Accounts (in thousands)
|
3,337
|
2,562
|
30%
|
|||||
Customer Equity (in billions)1
|
$
|
568.2
|
$
|
426.0
|
33%
|
|||
Total Customer DARTs (in thousands)
|
3,118
|
1,934
|
61%
|
|||||
Cleared Customers
|
||||||||
Commission per Cleared Commissionable Order2
|
$
|
2.72
|
$
|
3.19
|
(15%)
|
|||
Cleared Avg. DARTs per Account (Annualized)
|
213
|
172
|
24%
|
|||||
Consecutive Quarters
|
4Q2024
|
3Q2024
|
% Change
|
|||||
Total Accounts (in thousands)
|
3,337
|
3,120
|
7%
|
|||||
Customer Equity (in billions)1
|
$
|
568.2
|
$
|
541.5
|
5%
|
|||
Total Customer DARTs (in thousands)
|
3,118
|
2,703
|
15%
|
|||||
Cleared Customers
|
||||||||
Commission per Cleared Commissionable Order2
|
$
|
2.72
|
$
|
2.83
|
(4%)
|
|||
Cleared Avg. DARTs per Account (Annualized)
|
213
|
198
|
8%
|
1
|
Excludes non-customers.
|
|||||||||||||
2 |
Commissionable Order - a customer order that generates commissions.
|
Three Months
|
Twelve Months
|
|||||||||||||
Ended December 31,
|
Ended December 31,
|
|||||||||||||
2024
|
2023
|
2024
|
2023
|
|||||||||||
(in millions)
|
||||||||||||||
Average interest-earning assets
|
||||||||||||||
Segregated cash and securities
|
$
|
65,466
|
$
|
59,482
|
$
|
62,117
|
$
|
59,582
|
||||||
Customer margin loans
|
60,290
|
42,769
|
53,503
|
41,229
|
||||||||||
Securities borrowed
|
6,089
|
5,185
|
5,899
|
5,315
|
||||||||||
Other interest-earning assets
|
11,873
|
10,534
|
11,180
|
10,114
|
||||||||||
FDIC sweeps1
|
4,643
|
3,554
|
4,214
|
3,003
|
||||||||||
$
|
148,361
|
$
|
121,524
|
$
|
136,913
|
$
|
119,243
|
|||||||
Average interest-bearing liabilities
|
||||||||||||||
Customer credit balances
|
$
|
114,274
|
$
|
96,598
|
$
|
105,840
|
$
|
96,081
|
||||||
Securities loaned
|
15,268
|
9,922
|
13,737
|
9,518
|
||||||||||
Other interest-bearing liabilities
|
104
|
1
|
26
|
1
|
||||||||||
$
|
129,646
|
$
|
106,521
|
$
|
119,603
|
$
|
105,600
|
|||||||
Net interest income
|
||||||||||||||
Segregated cash and securities, net
|
$
|
747
|
$
|
760
|
$
|
3,024
|
$
|
2,791
|
||||||
Customer margin loans2
|
792
|
631
|
3,012
|
2,278
|
||||||||||
Securities borrowed and loaned, net
|
25
|
43
|
92
|
276
|
||||||||||
Customer credit balances, net2
|
(884)
|
(866)
|
(3,595)
|
(3,125)
|
||||||||||
Other net interest income1/3
|
150
|
171
|
690
|
600
|
||||||||||
Net interest income3
|
$
|
830
|
$
|
739
|
$
|
3,223
|
$
|
2,820
|
||||||
Net interest margin ("NIM")
|
2.23%
|
2.41%
|
2.35%
|
2.36%
|
||||||||||
Annualized yields
|
||||||||||||||
Segregated cash and securities
|
4.54%
|
5.07%
|
4.87%
|
4.68%
|
||||||||||
Customer margin loans
|
5.23%
|
5.85%
|
5.63%
|
5.53%
|
||||||||||
Customer credit balances
|
3.08%
|
3.56%
|
3.40%
|
3.25%
|
1
|
Represents the average amount of customer cash swept into FDIC-insured banks as part of our Insured Bank Deposit Sweep Program. This item is not recorded in the Company's consolidated statements of financial condition. Income derived from program deposits is reported in other net interest income in the table above. | |||||||||||||
2
|
Interest income and interest expense on customer margin loans and customer credit balances,
respectively, are calculated on daily cash balances within each customer’s account on a net basis, which may result in an offset of balances across multiple account segments (e.g., between securities and commodities segments).
|
|||||||||||||
3
|
Includes income from financial instruments that has the same characteristics as interest, but is reported in other
fees and services and other income in the Company’s consolidated statements of comprehensive income. For the three and twelve months ended December 31, 2024 and 2023, $8 million, $28 million, $5 million, and $19 million were
reported in other fees and services, respectively. For the three and twelve months ended December 31, 2024 and 2023, $15 million, $47 million, $4 million, and $7 million were reported in other income, respectively. |
Three Months
|
Twelve Months
|
||||||||||||
Ended December 31,
|
Ended December 31,
|
||||||||||||
2024
|
2023
|
2024
|
2023
|
||||||||||
(in millions)
|
|||||||||||||
Adjusted net revenues1
|
|||||||||||||
Net revenues - GAAP
|
$
|
1,387
|
$
|
1,139
|
$
|
5,185
|
$
|
4,340
|
|||||
Non-GAAP adjustments
|
|||||||||||||
Currency diversification strategy, net
|
18
|
9
|
15
|
80
|
|||||||||
Mark-to-market on investments2
|
10
|
8
|
48
|
(46)
|
|||||||||
Remeasurement of TRA liability3
|
9
|
(7)
|
9
|
(7)
|
|||||||||
Total non-GAAP adjustments
|
37
|
10
|
72
|
27
|
|||||||||
Adjusted net revenues
|
$
|
1,424
|
$
|
1,149
|
$
|
5,257
|
$
|
4,367
|
|||||
Adjusted income before income taxes1
|
|||||||||||||
Income before income taxes - GAAP
|
$
|
1,040
|
$
|
816
|
$
|
3,695
|
$
|
3,069
|
|||||
Non-GAAP adjustments
|
|||||||||||||
Currency diversification strategy, net
|
18
|
9
|
15
|
80
|
|||||||||
Mark-to-market on investments2
|
10
|
8
|
48
|
(46)
|
|||||||||
Remeasurement of TRA liability3
|
9
|
(7)
|
9
|
(7)
|
|||||||||
Bad debt expense4
|
-
|
5
|
-
|
5
|
|||||||||
Total non-GAAP adjustments
|
37
|
15
|
72
|
32
|
|||||||||
Adjusted income before income taxes
|
$
|
1,077
|
$
|
831
|
$
|
3,767
|
$
|
3,101
|
|||||
Adjusted pre-tax profit margin
|
76%
|
72%
|
72%
|
71%
|
Three Months
|
Twelve Months
|
||||||||||||
Ended December 31,
|
Ended December 31,
|
||||||||||||
2024
|
2023
|
2024
|
2023
|
||||||||||
(in millions)
|
|||||||||||||
Adjusted net income available for common stockholders1
|
|||||||||||||
Net income available for common stockholders - GAAP
|
$
|
217
|
$
|
160
|
$
|
755
|
$
|
600
|
|||||
Non-GAAP adjustments
|
|||||||||||||
Currency diversification strategy, net
|
5
|
2
|
4
|
20
|
|||||||||
Mark-to-market on investments2
|
3
|
2
|
12
|
(12)
|
|||||||||
Remeasurement of TRA liability3
|
9
|
(7)
|
9
|
(7)
|
|||||||||
Bad debt expense4
|
-
|
1
|
-
|
1
|
|||||||||
Income tax effect of above adjustments5
|
(2)
|
(1)
|
(4)
|
(2)
|
|||||||||
Remeasurement of deferred income taxes6
|
(11)
|
7
|
(11)
|
7
|
|||||||||
Total non-GAAP adjustments
|
5
|
5
|
11
|
8
|
|||||||||
Adjusted net income available for common stockholders
|
$
|
222
|
$
|
164
|
$
|
766
|
$
|
608
|
|||||
Note: Amounts may not add due to rounding.
|
Three Months
|
Twelve Months
|
||||||||||||
Ended December 31,
|
Ended December 31,
|
||||||||||||
2024
|
2023
|
2024
|
2023
|
||||||||||
(in dollars)
|
|||||||||||||
Adjusted diluted EPS1
|
|||||||||||||
Diluted EPS - GAAP
|
$
|
1.99
|
$
|
1.48
|
$
|
6.93
|
$
|
5.67
|
|||||
Non-GAAP adjustments
|
|||||||||||||
Currency diversification strategy, net
|
0.04
|
0.02
|
0.04
|
0.19
|
|||||||||
Mark-to-market on investments2
|
0.02
|
0.02
|
0.11
|
(0.11)
|
|||||||||
Remeasurement of TRA liability3
|
0.08
|
(0.07)
|
0.08
|
(0.07)
|
|||||||||
Bad debt expense4
|
0.00
|
0.01
|
0.00
|
0.01
|
|||||||||
Income tax effect of above adjustments5
|
(0.02)
|
(0.01)
|
(0.03)
|
(0.01)
|
|||||||||
Remeasurement of deferred income taxes6
|
(0.10)
|
0.07
|
(0.10)
|
0.07
|
|||||||||
Total non-GAAP adjustments
|
0.04
|
0.04
|
0.10
|
0.08
|
|||||||||
Adjusted diluted EPS
|
$
|
2.03
|
$
|
1.52
|
$
|
7.03
|
$
|
5.75
|
|||||
Diluted weighted average common shares outstanding
|
109,683,522
|
107,811,190
|
109,002,938
|
105,846,877
|
|||||||||
Note: Amounts may not add due to rounding.
|
•
|
We define adjusted net revenues as net revenues adjusted to remove the effect of our currency diversification strategy, our net mark-to-market gains (losses) on investments2, and
the remeasurement of our Tax Receivable Agreement (“TRA”) liability3.
|
•
|
We define adjusted income before income taxes as income before income taxes adjusted to remove the effect of our currency diversification strategy, our net mark-to-market gains (losses) on
investments, the remeasurement of our TRA liability, and unusual bad debt expense4.
|
•
|
We define adjusted net income available to common stockholders as net income available for common stockholders adjusted to remove the after-tax effects attributable to IBG, Inc. of our
currency diversification strategy, our net mark-to-market gains (losses) on investments, the remeasurement of our TRA liability, unusual bad debt expense, and the remeasurement of certain deferred tax assets6.
|
•
|
We define adjusted diluted EPS as adjusted net income available for common stockholders divided by the diluted weighted average number of shares outstanding for the period.
|