Interactive Brokers Strong Q2 2024 Results: EPS Up to $1.76in

Interactive Brokers has released its financial results for the quarter ending June 30, 2024 (Q2), showcasing performance driven by increased trading volumes and net interest income.

For the quarter, reported diluted earnings per share were $1.65, while adjusted earnings per share stood at $1.76, compared to $1.20 and $1.32, respectively, in the same period last year.

Net revenues for the quarter totaled $1,230 million on a reported basis, with adjusted net revenues reaching $1,290 million. This marks a significant increase from the $1,000 million reported in the year-ago quarter, with adjusted net revenues of $1,064 million.

Income before income taxes saw a substantial rise to $880 million on a reported basis and $940 million as adjusted, up from $652 million reported and $716 million adjusted in the prior-year quarter.

Interactive Brokers Strong Q2 2024 Results: Diluted EPS Up to $1.76

The company reported a 26% increase in commission revenue, reaching $406 million, attributable to higher customer trading volumes across options (35% increase), stocks (26% increase), and futures (10% increase).

Net interest income grew by 14% to $792 million, driven by higher benchmark interest rates, increased customer margin loans, and higher customer credit balances.

Other fees and services increased by 45% to $68 million, fueled by a $14 million rise in risk exposure fees, alongside increases in payments for order flow from exchange-mandated programs and FDIC sweep program fees.

Pretax profit margin for the quarter was reported at 72%, or 73% on an adjusted basis, compared to 65% reported and 67% adjusted in the same quarter last year.

Reflecting its strong financial health, Interactive Brokers Group’s Board of Directors declared a quarterly cash dividend of $0.25 per share, payable on September 13, 2024, to shareholders of record as of August 30, 2024.

The company also noted an expansion in its customer base, with customer accounts growing by 28% year-over-year to 2.92 million. Total Daily Average Revenue Trades (DARTs) increased by 28% to 2.39 million, underscoring heightened market activity among its client base.

Company Overview

Interactive Brokers caters to diverse requirements, offering competitive fees alongside a wide array of trading options such as stocks, ETFs, options, futures, and various other assets spanning the globe. It distinguishes itself as a top-tier brokerage, particularly appealing to traders and investors seeking a straightforward trading experience. With Interactive Brokers’ user-friendly platform, users can execute trades seamlessly, benefiting from competitive spreads that enhance cost-effectiveness. 

Discover more in our Complete Review.