GREENWICH - Interactive Brokers (NASDAQ:IBKR) Group, Inc. (NASDAQ:IBKR), a leading automated global electronic broker, has reported a robust second quarter, surpassing analyst expectations with an adjusted earnings per share (EPS) of $1.76, which is $0.05 higher than the consensus estimate of $1.71.
The company's revenue also exceeded forecasts, coming in at $1.29 billion against the anticipated $1.26 billion. Following the announcement, the company's shares saw a modest increase of 0.9%.
The company's financial performance for the quarter ended June 30, 2024, demonstrated significant growth compared to the same period last year. The reported GAAP net revenues stood at $1,230 million, with adjusted net revenues reaching $1,290 million, marking a notable rise from the previous year's GAAP and adjusted net revenues of $1,000 million and $1,064 million, respectively. This improvement reflects a year-over-year (YoY) increase in revenue of 23%.
Interactive Brokers' GAAP diluted EPS for the current quarter was $1.65, while the adjusted EPS reached $1.76. These figures represent a substantial improvement from the year-ago quarter's GAAP diluted EPS of $1.20 and adjusted EPS of $1.32.
The company attributed its revenue growth to a 26% increase in commission revenue, which amounted to $406 million, driven by heightened customer trading volumes in options, stocks, and futures. Net interest income also saw a 14% rise to $792 million, credited to higher benchmark interest rates and customer margin loans, alongside an increase in customer credit balances.
Interactive Brokers' pre-tax profit margin for the quarter was reported at 72% on a GAAP basis and 73% on an adjusted basis, compared to the prior year's 65% and 67%, respectively. Total equity stood at $15.2 billion.
Reflecting on the results, the CEO stated, "Our commitment to providing sophisticated technology and automation has enabled us to deliver strong results this quarter, with significant increases in both net revenues and earnings per share. Our focus remains on enhancing our platform to empower our clients with superior trading and risk management tools."
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