Interactive Brokers Group has filed its financial report for the third quarter of 2023, reporting a significant increase in net interest income.
The brokerage reported diluted earnings per share of $1.56 for the period, with adjusted earnings of $1.55. For the third quarter of 2022, these numbers were $0.97 and $1.08, respectively.
Net revenues for the third quarter of 2023 rose to $1.145 million and to $1.139 million on an adjusted basis, up from $790 million and $847 million a year earlier, FNG said.
The brokerage's reported pretax income for the period was $840 million, and adjusted income was $834 million. Last year, the figures were $523 million and $580 million, respectively.
Interactive Brokers' commission revenue increased 4 percent to $333 million, driven primarily by an 18 percent increase in options trading volume. Meanwhile, futures contracts and stock share volumes declined 1 percent and 22 percent, respectively.
Net interest income increased 55 percent to $733 million in the third quarter, reflecting higher benchmark interest rates and client loan balances.
Other brokerage income increased by $75 million, resulting in a net income of $27 million. Execution, clearing, and distribution fees increased 14% to $98 million, primarily due to higher client options trading volumes.
The reported and adjusted pre-tax profit margin for the period was 73%, compared to reported and adjusted pre-tax profit margins of 66% and 68%, respectively, for the third quarter of last year.
Interactive Brokers' Board of Directors has declared a quarterly cash dividend of $0.10 per share, payable on December 14, 2023.
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