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Interactive Brokers Tops Q3 Estimates as Trading Rebounds and Interest Income Rises

Higher interest-related revenues powered a 79% pretax margin.

Overview

  • Earnings per share were 57 cents versus the 54-cent consensus, and revenue was $1.65 billion against estimates of $1.5 billion.
  • Net interest income rose 21% to $967 million, including $133 million from securities lending as cited by KBW.
  • Commission revenue increased 23% to $537 million, with stock trading volumes up 67%, options up 27%, and futures down 7%.
  • General and administrative expenses fell 59% due to the absence of last year’s legal, regulatory and European consolidation costs, lifting the pretax margin to 79%.
  • Customer accounts grew to about 4.13 million and client equity reached $757.5 billion; the board declared an $0.08 per-share dividend, and the stock fell about 3% Friday after edging higher in late trading Thursday.