March 2018 metrics
On April 2, 2018, Interactive Brokers Group (IBKR) reported its financial metrics for March 2018. The company saw a substantial increase of 39% on a YoY basis in its daily average revenue trades (or DARTs). However, compared to February 2018, DARTs fell 11%. The trade war fears due to President Trump’s announcement regarding the imposition of tariffs could be the main reason for the decline in DARTs compared to February 2018.
Interactive Brokers saw a substantial increase of 28% in client accounts in March 2018 on a YoY basis. However, compared to February 2018, the company saw a 2% rise. Thus, a rise in the client accounts could lead to a rise in trading volumes for the company moving forward, which could boost its revenues.
As of March 31, 2018, Interactive Brokers reported client margin loan balances of $29.3 billion, a rise of 5% compared to February 2018 and 40% on a YoY basis. The company reported client credit balances of $46.9 billion as of March 2018, a YoY increase of 7%. However, compared to February 2018, the number declined 1%.
The price-to-sales ratio of IBKR is 14.54x on an LTM (last-12-month) basis, and peers (XLF) Goldman Sachs (GS), J.P. Morgan Chase (JPM), and Morgan Stanley (MS) have ratios of 2.19x, 5.75x, and 2.16x, respectively, on an LTM basis.