Interactive Brokers' Third-Quarter Revenue Increases by 70%

Interactive Brokers Group (Nasdaq: IBKR) announced net revenue of $790 million between July and September, representing a 70 percent growth year-over-year. The corrected amount rose from $650 million to $847 million.

Interest income increased by 73 percent to $473 million, mostly as a result of higher benchmark interest rates and client credit balances. However, commission revenue climbed by only three percent to $320 million.

Loss revenues from other income streams were also drastically reduced, falling from $170 million to $48 million. This sum increased from a loss of $171 million connected to Interactive Brokers' investment in UP Fintech, which operates Tiger Brokers.

Following two consecutive quarters of decline, the quarterly revenue increased significantly. In the first and second quarters of 2022, the American broker's reported revenue decreased by 28% and 13%, respectively.

The electronic broker's reported pre-tax income was $523 million, but the adjusted amount was $580 million. Both numbers climbed by 123% and 38%, respectively. Additionally, the profit margins improved, from 66 percent to 68 percent.

The reported diluted earnings for the quarter were $0.97, while the adjusted figure was $1.08, representing an increase of 125% and 38%, respectively, year over year.

Several of the broker's important client indicators demonstrated inconsistent performance. To 2.01 million, the number of consumer accounts climbed by 31%. However, the period's total DARTs declined by 15% to 1.92 million. There were 1.71 million cleared DARTs, a 15% reduction from the previous year.

In addition, customer equity declined by 19% to $287.1 billion, while customer credits rose 10% to $94.7 billion. The amount of customer margin loans for the period was $40,5 billion, a reduction of 19%.