Interactive Brokers released its financial results for the first quarter ended March 31, 2024, highlighting a positive performance based on earnings and revenue. The company's net revenue grew 13% to $1,203 million on a GAAP basis, driven by increased accounts receivable.
The revenue growth marked a substantial increase from the prior year's $1,056 million (GAAP) and $1,015 million (adjusted). Fee revenue increased 6% to $379 million. Interactive Brokers reported diluted EPS of $1.61 for the quarter, with slightly higher adjusted EPS of $1.64. Compared to the same period last year, reported EPS represents notable growth, from $1.42 (GAAP) to $1.35 (adjusted).
Options volume jumped 24%, while futures and stock volumes declined 3% and 16%, respectively. Additionally, net interest income increased 17% to $747 million due to higher benchmark interest rates, customer margin lending and credit balances.
Compared to last year, Interactive Brokers' client accounts increased by 25% to 2.75 million. Customer equity jumped 36% to $465.9 billion, while customer credit rose 9% to $104.9 billion.
Increasing Dividends and Business Growth
Following these positive results, Interactive Brokers declared a substantial increase in its quarterly cash dividend, from $0.10 to $0.25 per share. The group serves a diverse clientele, including individual investors, hedge funds and financial advisors. It also focuses on leveraging technology to provide investment solutions.
Recently, Interactive Brokers launched two new services aimed at helping certain US hedge funds manage and grow their operations. High Touch Prime Brokerage and Global Outsourced Trading are designed to complement Interactive Brokers' existing suite of offerings for active traders and institutional investors.
High Touch Prime Brokerage provides eligible hedge fund clients with personalized support, offering access to a dedicated relationship manager who serves as a central point of contact. This manager is equipped to respond to inquiries, quickly resolve issues, and facilitate special requests based on the client's trading strategy and requirements.
Interactive Brokers released its financial results for the first quarter ended March 31, 2024, highlighting a positive performance based on profits and revenue. The company's net revenue grew 13% to $1,203 million on a GAAP basis, driven by increased accounts receivable.
The revenue growth marked a substantial increase from the prior year's $1,056 million (GAAP) and $1,015 million (adjusted). Fee revenue increased 6% to $379 million. Interactive Brokers reported diluted EPS of $1.61 for the quarter, with slightly higher adjusted EPS of $1.64. Compared to the same period last year, reported EPS represents notable growth, from $1.42 (GAAP) to $1.35 (adjusted).
Options volume jumped 24%, while futures and stock volumes declined 3% and 16%, respectively. Additionally, net interest income increased 17% to $747 million due to higher benchmark interest rates, customer margin lending and credit balances.
Compared to last year, Interactive Brokers' client accounts increased by 25% to 2.75 million. Customer equity jumped 36% to $465.9 billion, while customer credit rose 9% to $104.9 billion.
Increasing Dividends and Business Growth
Following these positive results, Interactive Brokers declared a substantial increase in its quarterly cash dividend, from $0.10 to $0.25 per share. The group serves a diverse clientele, including individual investors, hedge funds and financial advisors. It also focuses on leveraging technology to provide investment solutions.
Recently, Interactive Brokers launched two new services aimed at helping certain US hedge funds manage and grow their operations. High Touch Prime Brokerage and Global Outsourced Trading are designed to complement Interactive Brokers' existing suite of offerings for active traders and institutional investors.
High Touch Prime Brokerage provides eligible hedge fund clients with personalized support, offering access to a dedicated relationship manager who serves as a central point of contact. This manager is equipped to respond to inquiries, quickly resolve issues, and facilitate special requests based on the client's trading strategy and requirements.