Interactive Brokers Reports Growth in Revenues and DARTs in Q2 2024

Interactive Brokers, a global automated electronic broker, has reported impressive financial results for the second quarter of 2024, highlighting earnings and revenue growth. For the quarter ended June 30, 2024, the Interactive Brokers reported a diluted earnings per share (EPS) of $1.65, up 37% from $1.20 in the same quarter last year.

Adjusted EPS was $1.76, up 33% from $1.32 in the year-ago quarter. The company's net revenue was $1,230 million (up 23% YoY) and adjusted net revenue reached $1,290 million (up 21% YoY), compared to $1 billion and $1,064 million, respectively, in the prior year.

Pre-tax income was $880 million and $940 million on an adjusted basis, up sharply from $652 million and $716 million, respectively, in the same period last year. The company's strong performance was reportedly driven by higher client trading volumes and increased net interest income.

Commission income jumped 26% to $406 million, reflecting higher client trading volumes in options, equities, and futures, which grew 35%, 26%, and 10%, respectively. Net interest income also increased by 14% to $792 million, mainly due to higher benchmark interest rates, client margin loans, and client credit balances.

Interactive Brokers reported pretax margins of 72% and adjusted margins of 73% for the quarter, compared to 65% and 67%, respectively, in the year-ago period. The company's total equity was $15.2 billion.

Daily average revenue trades (DARTs) grew 28%, totaling 2.39 million transactions. However, during the quarter, Interactive Brokers recognized a loss of approximately $48 million as a result of a June 3, 2024 technical issue at the New York Stock Exchange.