Source : financemagnates, Wednesday, 17/7/2024
Interactive Brokers announced impressive financial results for the second quarter of 2024, highlighting growth in profits and revenue. For the quarter ended June 30, 2024, the brokerage giant reported diluted earnings per share (EPS) of $1.65, an increase of 37% compared to $1.20 in the same period last year..
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Reflects strong growth
On a adjusted basis, earnings per share were $1.76, up 33% year-on-year from $1.32. The company recorded net revenue of $1,230 million (23% year-on-year), with adjusted net income reaching $1,290 million (21% year-on-year), compared to $1,000 million and $1,064 million in the previous year, respectively..
Income before income taxes was $880 million, with an adjusted figure of $940 million, showing a significant rise from last year’s figures of $652 million and $716 million, respectively. 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 trading volumes across options, stocks and futures, which increased by 35%, 26% and 10% respectively. Net interest income increased by 14% to $792 million, driven by higher benchmark interest rates, customer margin loans and customer credit balances..
Fees and other services increased by $21 million, or 45 percent, to $68 million, mainly due to increases in risk exposure fees and payments for the flow of orders from exchange-mandated software. However, execution, clearing and distribution fee expenses also increased by 24% to $115 million, due to higher trading volumes and an increase in the SEC fee rate during the quarter.
Profit margins before tax
Interactive Brokers reported a pre-tax profit margin of 72% and a 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 was $15.2 billion..
Following the strong quarter, the World Bank’s Board of Directors announced a quarterly cash dividend of $0.25 per share, payable on September 13, 2024, to registered shareholders effective August 30, 2024. The company also announced a 28% increase in client accounts, reaching 2.92 million, and a 36% increase in customer equity, totaling $497.2 billion..
Total average daily revenue for trading increased by 28% to 2.39 million. However, during the quarter, Interactive Brokers admitted a loss of approximately $48 million due to a technical issue on the New York Stock Exchange on June 3, 2024..
