Interactive Brokers Group, Inc. (NASDAQ:IBKR) Q3 2023 Earnings Call Transcript October 17, 2023 4:30 PM ET
Company Participants
Nancy Stuebe - Director, IR
Paul Brody - CFO
Thomas Peterffy - Chairman
Milan Galik - CEO
Conference Call Participants
Craig Siegenthaler - Bank of America
Benjamin Budish - Barclays
Patrick Moley - Piper Sandler
Brennan Hawken - UBS
Daniel Fannon - Jefferies
Chris Allen - Citi
James Yaro - Goldman Sachs
Kyle Voigt - KBW
Operator
Good day, and thank you for standing by. Welcome to the Interactive Brokers Group Third Quarter 2023 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speakers' presentation, there will be a question-and-answer session. [Operator Instructions] I would like to advise that today's conference call is being recorded. I would now like to turn the conference over to your speaker for today, Nancy Stuebe, please go ahead.
Nancy Stuebe
Thank you. Good afternoon, and thank you for joining us for our third 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.
Our robust operating metrics once again translated into strong financial results this quarter. Our account growth remains strong at 21%, while our client equity was up 29%. Net interest income reached a record, as did our total adjusted net revenues, which were over $1 billion for the third consecutive quarter.
On the other hand, markets were down in nearly every country in the quarter and trading volumes dropped. Low market volatility, customers moving to higher price stocks of companies with greater capitalization and overwhelming competitive strength, and a geopolitical environment that is increasingly uncertain, all led to lower DARTs. This meant that while we were able to increase our commission revenue slightly, reaching its fourth highest level in our history, it is still the case that investors are holding on to the same seven equities and not trading others actively. However, options volumes continue to be strong and option commissions were up the most this quarter. Then came futures, while stock commission revenue dropped. As I've said previously, I do not expect the situation to reverse.