The Market-Making division of Interactive Brokers Group (IBKR) saw a decline in pre-tax income in 4Q17 compared to 4Q16. The division generated net revenues of $25 million in 4Q17 compared to $45 million in 4Q16. On the positive side, the division saw a decline in non-interest expenses from $33 million in 4Q16 to $17 million in 4Q17.
The Market-Marking division’s pre-tax income was negatively impacted by the fall in trading gains in 4Q17 to $8 million. The transfer of the US Market-Making business was successfully wrapped up in 3Q17, which helped the division in terms of incurring less operating costs in 4Q17. The transfer was made to Two Sigma Securities.
Performance in 2017
The Market-Making division saw a substantial decline in net revenues from $190 million in 2016 to $86 million in 2017. The division also saw a decline in non-interest expenses from $146 million in 2016 to $113 million in 2017.
The division also reported pre-tax income of $44 million in 2016 and a pre-tax loss of $27 million in 2017.
Over the last 12 months, Interactive Brokers Group’s dividend yield was 0.64%. Its peers (XLF) Bank of America (BAC), Morgan Stanley (MS), and Wells Fargo (WFC) have dividend yields of 1.1%, 1.6%, and 2.5%, respectively.
In the next part, we’ll take a look at Interactive Brokers Group’s balance sheet.