Interactive Brokers has released its financial results for the first quarter ended March 31, 2024, posting positive results on both the earnings and revenue fronts. On a GAAP basis, the company's net revenue increased 13% to $1.203 billion, driven by an increase in customer accounts.

Key Financial Highlights

Online Brokerage reported diluted earnings per share of $1.61 and adjusted earnings per share of just over $1.64 for the quarter. Compared to the same period last year, reported EPS increased significantly to $1.42 (U.S. GAAP) and $1.35 (adjusted), respectively. This compares favorably to $1.056 billion (U.S. GAAP) and $1.015 billion (adjusted) in the same periods last year. Commission revenue increased 6% to $379 million.

Notably, trading volume in options contracts surged 24 percent, while trading volume in futures contracts and equities declined 3 percent and 16 percent, respectively. In addition, net interest income increased 17% to $747 million, driven by higher benchmark rates, customer margin loans and credit balances.

Interactive Brokers' client accounts increased by 25% to 2.75 million compared to last year. Customer assets jumped 36 percent to $465.9 billion and customer credit increased 9 percent to $104.9 billion.

Dividend enhancement and business growth

Following the good results, Interactive Brokers Group announced a significant increase in its quarterly cash dividend from $0.10 to $0.25 per share. The group has a diversified client base that includes individual investors, hedge funds and financial advisors. The group specializes in providing investment solutions utilizing technology.

Recently, Interactive Brokers launched two new services designed to assist select U.S. hedge funds in managing and expanding their businesses. High Touch Prime Brokerage and Global Outsourced Trading are designed to complement Interactive Brokers' existing services for active traders and institutional investors.

High Touch Prime Brokerage provides personalized support to eligible hedge fund clients by giving them access to a dedicated relationship manager who serves as a central point of contact. The manager has the ability to handle inquiries, resolve issues in a timely manner and facilitate special requests based on the client's trading strategy and requirements.