Interactive Brokers Q1 2024 Results Posted: Net Revenues Surge, Exceeding Expectations

On April 16, 2024, automated global electronic broker Interactive Brokers announced its financial results for the first quarter ended March 31, 2024. 

The broker reported a GAAP (generally accepted principles and practices) diluted EPS of $1.61 and adjusted EPS of $1.64, in line with analyst expectations. 

Revenue figures exceeded analyst forecasts, with GAAP net revenues at $1,203 million and adjusted net revenues at $1,216 million. In Q1 2023, reported net revenues were $1,056 million and $1,015 million as adjusted.

Reported pretax earnings for the quarter were $866 million, and $879 million as adjusted. Pretax earnings for the same period last year were $761 million, and $720 million as adjusted.

Commission revenue for Q1 2024 increased 6% year-on-year (YoY) to $379 million. Options contract volume increased 24% YoY, while futures contract and equity volume declined 3% YoY and 16% YoY, respectively.

Net interest income increased 17% YoY to $747 million due to higher benchmark interest rates, customer margin loans, and customer credit balances.

Expenses for execution, clearing, and distribution fees increased 6% YoY to $101 million due to higher options trading volumes.

On a YoY basis, customer accounts increased 25% to 2.75 million; customer equity increased 36% to $465.9 billion; total daily average revenue trades (DARTs) increased 14% to 2.35 million.

The Interactive Brokers Group, Inc. Board of Directors declared an increase in the quarterly cash dividend from $0.10 per share to $0.25 per share. This dividend is payable on June 14, 2024, to shareholders of record as of May 31, 2024.