Interactive Brokers Raises Dividend 71% as Net Interest Income Offsets Trading Slowdown

Interactive Brokers reported higher net interest income in the third quarter as larger client balances outweighed lower yields, more than offsetting a sequential decline in commission revenue. The broker also announced a 71% increase in its quarterly dividend.

On an adjusted basis, net revenue reached $1.87 billion, pretax income was $1.45 billion and diluted earnings were $0.67 per share. The adjusted pretax margin narrowed to 78% from 79% a year earlier.

Net revenue rose 16% to $1.914 billion from $1.655 billion in the third quarter of 2025. Commission revenue increased 12% to $602 million, while net interest income climbed 19% to $1.154 billion. Pretax income was $1.496 billion, up 14%, and diluted EPS came in at $0.69, up 17%.

Average customer margin loans reached $104.0 billion during the quarter, an increase of 47% from $70.8 billion a year earlier. Average customer credit balances rose 25% to $176.6 billion. The expansion in balances lifted net interest income even as the profitability of those assets declined. Net interest margin narrowed to 1.99% from 2.16% year over year. The annualised yield on customer margin loans fell to 4.25% from 4.60%, while the yield on segregated cash and securities decreased to 3.40% from 3.81%.

Total DARTs averaged 4.27 million during the quarter, 18% higher than a year earlier but 11% below the second quarter. Commission revenue consequently declined from $673 million in Q2 to $602 million. Compared with the previous year, customer futures volume increased 13%, while stock and options volumes fell 24% and 1%, respectively. Average commission per cleared commissionable order declined 4% to $2.59.

Higher regulatory charges also contributed to the annual increase in commission revenue. Execution, clearing and distribution expenses rose 46% to $134 million, largely because of a $30 million increase in regulatory fees following a higher SEC Section 31 transaction fee rate. Interactive Brokers passes those fees through to customers.

The broker finished September with 5.58 million customer accounts and $964.7 billion in customer equity, representing annual increases of 35% and 27%, respectively.

Interactive Brokers’ board increased the quarterly dividend from $0.0875 to $0.15 per share. The dividend is payable on December 14 to shareholders of record on December 1.