Interactive Brokers Group, Inc. (NASDAQ:IBKR) Q4 2023 Earnings Call Transcript January 16, 2024 4:30 PM ET
Company Participants
Nancy Stuebe - Director of IR
Paul Brody - CFO
Milan Galik - CEO
Conference Call Participants
James Yaro - Goldman Sachs
Craig Siegenthaler - Bank of America
Benjamin Budish - Barclays
Brennan Hawken - UBS
Dan Fannon - Jefferies
Kyle Voigt - KBW
Chris Allen - Citi
Patrick Moley - Piper Sandler
Operator
Good day and thank you for standing by. Welcome to the Interactive Brokers Group 4Q ‘23 Earnings Call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question-and-answer session. [Operator Instructions] Please be advised that today's conference is being recorded.
I would now like to hand the conference over to your speaker today, Nancy Stuebe, Director of Investor Relations.
Nancy Stuebe
Good afternoon. Happy New Year and thank you for joining us for our fourth quarter 2023 earnings call. Thomas is on the call and 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.
In 2023, we added over 470,000 net new accounts. Our client equity at year end was up 39% to $426 billion, an increase of over $100 billion from last year. We earned over $4 billion in net revenues and over $3 billion in pre-tax income, both for the first time. Our pre-tax margin was 71% for the full year, by far the highest in the industry. In fact, very few public companies in any industry have that kind of profit margin. If market conditions continue as they are, even with the three interest rate cuts being predicted, I see no reason why we wouldn't be able to maintain pre-tax margin at the 70% level.
We saw stronger markets in 2023, with the same focus on options and on the Magnificent Seven names that we have seen for a year now. We see options being traded actively both traditionally, as a means to offset risk and a standalone zero data expiry.