Interactive Brokers Reports Better-Than-Expected Q2 Results, Customer Accounts Increased 28%: The Details
Interactive Brokers Group, Inc. (NASDAQ:IBKR) reported its second-quarter financial results Tuesday after the closing bell. Here's a look at the key figures from the report.
The Details: Interactive Brokers reported quarterly sales of $1.29 billion which beat the analyst consensus estimate of $1.262 billion by 2.21% and represents a 29% increase over sales of $1 billion from the same period last year. The company reported quarterly earnings of $1.76 per share, which beat the analyst consensus estimate of $1.74 by 1.15%.
Customer accounts increased 28% to 2.92 million and customer equity increased 36% to $497.2 billion.
Commission revenue increased 26% to $406 million on higher customer trading volumes. Customer trading volume in options, stocks and futures increased 35%, 26% and 10%, respectively.
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Net interest income increased 14% to $792 million on higher benchmark interest rates, customer margin loans and customer credit balances. Other fees and services increased $21 million, or 45%, to $68 million, driven primarily by increases of $14 million in risk exposure fees and $3 million each in payments for order flow from exchange-mandated programs and FDIC sweep program fees.
Interactive Brokers reported execution, clearing and distribution fees expenses increased 24% to $115 million, driven by higher customer trading volumes and an increase in the SEC fee rate during the current quarter, and the company recognized a loss of approximately $48 million on positions taken over as customer accommodation due to a technical issue at the New York Stock Exchange that occurred on the morning of June 3, 2024.
The company’s board of directors declared a quarterly cash dividend of $0.25 per share payable on Sept. 13, 2024, to shareholders of record as of Aug. 30, 2024.
IBKR Price Action: According to Benzinga Pro, Interactive Brokers shares are up 1.73% after-hours at $125.80 at the time of publication Tuesday.
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Photo: Courtesy of Interactive Brokers Group, Inc.