Interactive Brokers Reports 13.9% YoY Growth in Net Revenues for Q1 2024

Interactive Brokers, a US-based automated global electronic broker, has released its financial results for the quarter ended March 31, 2024 (Q1 2024), reporting a positive performance on revenues.

Financial Overview for Q1 2024:

• Net revenues on a GAAP basis totaled $1,203 million in Q1 2024, increasing 13.9% compared to $1,056 million in the year-ago quarter. Among them, commission revenue rose by 6.2% from $357 million to $379 million on a year-on-year basis (YoY), while revenue of other fees and services rose YoY by 37.2% from $43 million to $59 million. Net interest income came in at $747 million, an increase of 17.3% compared to $637 million in the same period of last year.

• Adjusted net revenues was $1,216 million, increasing 19.8% compared to $1,015 million in Q1 2023.

• Non-interest expenses for the three months came in at $337 million, up 14.2% compared to $295 million in the same period of last month. Execution, clearing and distribution fees increased 6.3% from $95 million in Q1 2023 to $101 million in Q1 2024. Employee compensation and benefits accounted the most in total non-interest expenses, up 13.3% YoY from $128 million to $145 million.

• Adjusted income before taxes amounted to $879 million for the quarter, an increase of 22.1% compared to $720 million in the first quarter of last year. Pre-tax profit margin for the current quarter was 72% both as reported and as adjusted. For the year-ago quarter, reported pretax margin was 72% and 71% as adjusted.

• Diluted earnings per share (EPS) were $1.61 in Q1 2024 for the period and $1.64 as adjusted, compared respectively to $1.42 and $1.35 as adjusted in Q1 2023.

• In Q1 2024, the number of accounts on Interactive Brokers platforms totaled 2,746 thousand, increasing 25.1% compared to 2,195 thousand accounts in the same period of 2023.

The company's robust financial performance serves as a solid foundation for its continued business growth. Recently, Interactive Brokers unveiled its High Touch Prime Brokerage and Global Outsourced Trading services​, specifically aimed at aiding a select group of US hedge funds in achieving their expansion goals.