Interactive Brokers posts record Q2 revenue as trading activity, margin lending su

Investing.com -- Interactive Brokers Group reported stronger second-quarter earnings on Tuesday, driven by robust customer trading activity, rising margin lending and higher net interest income, as the online brokerage continued to expand its client base and assets under management.

The results come as retail and institutional investors remain highly active amid elevated market volatility, supporting trading volumes and demand for margin financing, key earnings drivers for online brokerages such as Interactive Brokers.

Diluted earnings per share rose to $0.69 from $0.51 a year earlier, while net revenue increased 28% to $1.90 billion. Income before taxes climbed to $1.46 billion from $1.10 billion, with the company's pretax profit margin improving to 77% from 75% a year ago.

Commission revenue increased 30% to $673 million as customer trading volumes rose across asset classes, with options trading up 17%, stock trading up 14% and futures trading up 2%. Net interest income climbed 23% to $1.06 billion, supported by higher average customer margin loans and customer credit balances, while fees from services increased 40% to $87 million.

The broker also reported continued customer growth, with total accounts rising 34% year over year to 5.19 million. Customer equity increased 40% to $930.3 billion, daily average revenue trades (DARTs) advanced 36% to 4.82 million, customer margin loans jumped 67% to $108.5 billion, and customer credit balances increased 27% to $182.4 billion.

Interactive Brokers' board declared a quarterly cash dividend of $0.0875 per share, payable on Sept. 14 to shareholders of record as of Sept. 1.

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