Interactive Brokers Group, Inc. (NASDAQ:IBKR) Q1 2023 Earnings Conference Call April 18, 2023 4:30 PM ET
Company Participants
Nancy Stuebe - Director of IR
Paul Brody - CFO
Thomas Peterffy - Chairman
Milan Galik - President, CEO & Director
Conference Call Participants
Richard Repetto - Piper Sandler
Daniel Fannon - Jefferies
Craig Siegenthaler - Bank of America Merrill Lynch
Benjamin Budish - Barclays
Kyle Voigt - KBW
Chris Allen - Citi
Transcript updated as per the company request
Operator
Good day, and thank you for standing by, and welcome to the Interactive Brokers Group First Quarter 2023 Earnings Call. [Operator Instructions] I would now like to hand the conference over to your speaker today, Nancy Stuebe, Director of Investor Relations. Please go ahead.
Nancy Stuebe
Good afternoon, and thank you for joining us for our first quarter 2023 earnings conference call. Once again, Thomas is on the call, but asked me to present his comments on the business. Also joining us today are Milan Galik, our CEO, and Paul Brody, our CFO. After prepared remarks, we will have a Q&A.
As a reminder, today's call may include forward-looking statements, which represent the company's belief regarding future events, which by their nature, are not certain and are outside of the company's control. Our actual results and financial condition may differ, possibly materially, from what is indicated in these forward-looking statements. We ask that you refer to the disclaimers in our press release. You should also review a description of risk factors contained in our financial reports filed with the SEC.
This quarter at IBKR had something for everybody. Account growth was strong; DARTs rose despite uncertain markets, and commission revenue was the second highest in our history. Meanwhile, our net interest income reached a record, and our reported pretax margin reached 72%.
We achieved this using our simple strategy, one that seems to be unique in our industry today: - We run a conservative balance sheet, with ample equity, and an extremely short portfolio duration.
That means we have over $12 billion in equity, and our portfolio duration is a matter of 3 to 4 weeks, not months, not years. This balance sheet supports a global business where we charge the lowest prices on commissions, and we pay the highest rates on uninvested client cash. We pay these rates on cash that you can use right now: you don’t have to sweep it out, and then wait if you need it back. With us, our clients’ cash can do two things - be available and earn interest - at the same time.