Interactive Brokers posted impressive financial
results for the second quarter of 2024, highlighting growth in earnings
and revenues. For the quarter ended June 30, 2024, the brokerage giant reported
a diluted earnings per share (EPS) of $1.65, a 37% increase compared to $1.20
in the same period last year.
On an adjusted basis, the EPS was $1.76, up 33% YoY
from $1.32. The company reported net revenue of $1,230 million (23% YoY
increase), with adjusted net revenues reaching $1,290 million (21% YoY increase),
compared to the previous year’s $1,000 million and $1,064 million,
respectively.
Income before income taxes was $880 million, with an
adjusted figure of $940 million, showing a substantial rise from the year-ago
figures of $652 million and $716 million, respectively. The company’s strong
performance was reportedly driven by higher customer trading volumes and
increased net interest income.
Commission revenue jumped by 26% to $406 million,
reflecting higher customer trading volumes across options, stocks, and futures,
which increased by 35%, 26%, and 10%, respectively. Net interest income also
experienced a 14% increase, reaching $792 million, reportedly driven by higher
benchmark interest rates, customer margin loans, and customer credit balances.
Other fees and services rose by $21
million, or 45%, to $68 million, primarily due to increases in risk exposure
fees and payments for order flow from exchange-mandated programs. However,
execution, clearing, and distribution fees expenses also rose by 24% to $115
million, attributed to higher trading volumes and an increase in the SEC fee
rate during the quarter.
Pretax Profit Margins
Interactive Brokers reported a pretax profit margin of
72% and an adjusted margin of 73% for the current quarter, compared to 65%
and 67%, respectively, in the same quarter last year. The company’s total
equity stood at $15.2 billion.
Following the strong quarter, IB’s Board of Directors
has 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
reported a 28% increase in customer accounts, reaching 2.92 million, and a 36%
increase in customer equity, totaling $497.2 billion.
Total daily average revenue trades rose by 28% to 2.39
million. However, during the quarter, Interactive Brokers recognized a loss of approximately $48 million due to a technical issue at the New York Stock
Exchange on June 3, 2024.
Interactive Brokers posted impressive financial
results for the second quarter of 2024, highlighting growth in earnings
and revenues. For the quarter ended June 30, 2024, the brokerage giant reported
a diluted earnings per share (EPS) of $1.65, a 37% increase compared to $1.20
in the same period last year.
On an adjusted basis, the EPS was $1.76, up 33% YoY
from $1.32. The company reported net revenue of $1,230 million (23% YoY
increase), with adjusted net revenues reaching $1,290 million (21% YoY increase),
compared to the previous year’s $1,000 million and $1,064 million,
respectively.
Income before income taxes was $880 million, with an
adjusted figure of $940 million, showing a substantial rise from the year-ago
figures of $652 million and $716 million, respectively. The company’s strong
performance was reportedly driven by higher customer trading volumes and
increased net interest income.
Commission revenue jumped by 26% to $406 million,
reflecting higher customer trading volumes across options, stocks, and futures,
which increased by 35%, 26%, and 10%, respectively. Net interest income also
experienced a 14% increase, reaching $792 million, reportedly driven by higher
benchmark interest rates, customer margin loans, and customer credit balances.
Other fees and services rose by $21
million, or 45%, to $68 million, primarily due to increases in risk exposure
fees and payments for order flow from exchange-mandated programs. However,
execution, clearing, and distribution fees expenses also rose by 24% to $115
million, attributed to higher trading volumes and an increase in the SEC fee
rate during the quarter.
Pretax Profit Margins
Interactive Brokers reported a pretax profit margin of
72% and an adjusted margin of 73% for the current quarter, compared to 65%
and 67%, respectively, in the same quarter last year. The company’s total
equity stood at $15.2 billion.
Following the strong quarter, IB’s Board of Directors
has 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
reported a 28% increase in customer accounts, reaching 2.92 million, and a 36%
increase in customer equity, totaling $497.2 billion.
Total daily average revenue trades rose by 28% to 2.39
million. However, during the quarter, Interactive Brokers recognized a loss of approximately $48 million due to a technical issue at the New York Stock
Exchange on June 3, 2024.
