Interactive Brokers' quarterly profit rises on robust trading activity

Interactive Brokers Group, Inc. Class A

Interactive Brokers Group, Inc. Class A

IBKR

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- Trading platform Interactive Brokers IBKR.O reported a 25% jump in first-quarter profit on Tuesday, helped by higher customer trading volumes.

The quarter was marked by market volatility, driven by concerns over AI disrupting business models and an escalating conflict in the Middle East that rattled oil markets.

Volatility is often a boon for trading desks, as investors rejig portfolios to hedge risks.


Here are some details:

  • Commission revenue surged 19% to $613 million compared to the previous year, driven by a strong jump in customer stock, futures and options trading volumes in the three months ended March 31.

  • Net interest income rose 17% to $904 million for the quarter, owing to higher average customer margin loans and credit balances.

  • The Connecticut-based company allows customers to buy and sell stocks, options, futures, cryptocurrencies, bonds, mutual funds, ETFs and precious metals.

  • Daily average revenue trades, or DARTs, which represent the average trades per day generating commissions or fees, rose 24% in the quarter to 4.37 million trades.

  • The company reported net income available for common stockholders of $267 million or 59 cents per share for the first quarter, compared with $213 million or 48 cents per share in the previous year.