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Interactive Brokers Reports 13% Revenue Surge Thanks to Expanding Customer Base

Interactive Brokers has released its financial results for the first quarter ending March 31, 2024, highlighting a positive performance based on earnings and revenue. The company's net revenues experienced 13% growth at $1,203 million on a GAAP basis, driven by a boost in customers' accounts.

Key Financial Highlights

The growth in revenue marked a substantial increase from the previous year's $1,056 million (GAAP) and $1,015 million (adjusted). Commission revenue rose 6% to $379 million. Interactive Brokers posted diluted EPS of $1.61 for the quarter, with a slightly higher adjusted EPS of $1.64. Compared to the same period last year, the reported EPS represents notable growth from $1.42 (GAAP) and $1.35 (adjusted).

Options contract volume surged 24%, while futures contract and stock share volumes declined 3% and 16%, respectively. Additionally, net interest income grew 17% to $747 million due to higher benchmark interest rates, customer margin loans, and credit balances.

Compared to last year, Interactive Brokers' customer accounts expanded 25% to 2.75 million. Customers' equity jumped 36% to $465.9 billion, while customer credits increased 9% to $104.9 billion.

Dividend Boost and Business Growth

Following the positive results, Interactive Brokers has declared a substantial uplift in its quarterly cash dividend from $0.10 to $0.25 per share. The group caters to a diverse clientele, including individual investors, hedge funds, and financial advisors. It also focuses on leveraging technology to offer investment solutions.

Recently, Interactive Brokers launched two new services aimed at assisting select US hedge funds in managing and expanding 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 personalized support, offering access to a dedicated Relationship Manager who serves as a central point of contact. This manager is equipped to address inquiries, promptly resolve issues, and facilitate special requests based on the client's trading strategy and requirements.