Interactive Brokers Group (NASDAQ:IBKR) reported impressive second-quarter earnings on Thursday, surpassing Wall Street expectations thanks to a significant increase in client trading and steady growth in net interest income.
Shares jumped nearly 5% in premarket trading on Friday.
The brokerage firm posted earnings per share of $0.51, exceeding the analysts’ forecast of $0.46.
Revenue rose to $1.48 billion, up from $1.23 billion in the same period last year, beating estimates.
Commission income grew 27% to $516 million, boosted by heightened trading volumes across equities, options, and futures.
Net interest income climbed 9% to $860 million, supported by larger customer credit balances and securities lending activities, which included a one-time tax credit of $26 million.
The number of customer accounts increased 32% to 3.87 million, while daily average revenue trades (DARTs) soared 49% to 3.55 million. Customer equity also jumped 34% to $664.6 billion.
Pretax margins remained solid at 75%, demonstrating ongoing operational efficiency. However, general and administrative expenses went up 17%, reflecting increased marketing efforts.
Margin balances averaged $60.9 billion for the quarter and ended June at $65.1 billion — 7% above the quarterly average.
Jefferies analysts praised the results, describing them as “strong across the board.”
They noted, “Improved retail engagement has translated directly into higher margin utilization throughout the quarter,” adding that the “end-of-period margin balances set up Q3 positively.”
Interactive Brokers also announced a quarterly dividend of $0.08 per share, payable on September 12.
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