Highlights from IB annual report

Discussion in 'Retail Brokers' started by TheStudent, Mar 5, 2009.

  1. During the year ended December 31, 2008, income before income taxes in our market making segment increased 43%, compared with the same period in 2007. A healthy increase in trading gains was driven by a productive trading environment throughout most of the year when trading volumes and volatility in the markets presented our automated trading system with more opportunities to trade. Pre-tax margin increased to 76% in 2008 compared to 70% in 2007. Our strong capital position, which allows us to maintain more than $1 billion of excess regulatory capital, together with committed standby financing facilities, allowed us to make markets continuously during the period of constrained liquidity throughout the year.

    During the year ended December 31, 2008, income before income taxes in our electronic brokerage segment grew 13% compared to the same period in 2007, reflecting higher revenues from commissions and execution fees. Pre-tax margin decreased from 47% to 44% in the same time periods. The increase in commissions and execution fees was related to strong growth in transaction volume and customer accounts. Total Daily Average Revenue Trades ("DARTs") for cleared and execution-only customers increased 35% to 357,000 during the year ended December 31, 2008, compared to 265,000 during the year ended December 31, 2007.

    Net revenues of each of our business segments and our total net revenues are summarized below:


    Year Ended December 31, (in millions)

    ...................................2008.........2007.........2006

    Market making..........$1,343.5....$1,031.2.....$ 954.7
    Electronic brokerage.......505.8........425.2........298.4
    Corporate........................0.8...........11.8.........(0.7)

    Total.......................$1,850.1.....$1,468.2....$1,252.4

    Income before income taxes of each of our business segments and our total income before income taxes are summarized below:

    ...................................2008..........2007........2006
    Market making.........$1,027.6.......$ 719.8.....$ 662.8
    Electronic brokerage......224.0.........197.9.........98.6
    Corporate......................(1.9)..........13.9...........0.2

    Total........................$1,249.7.......$931.6.....$761.6
     
  2. Record profits gets you a stock trading at 13.40 with a P/E of 6.
     
  3. who has time to trade when you're farming and standing in bread lines