Customer trading volume and commission revenue surged. Interactive Brokers Group, Inc. Class AQ4 (IBKR.US) revenue and profits both exceeded expectations.

Automated global electronic broker Interactive Brokers Group, Inc. Class A (IBKR.US) announced its fourth quarter financial performance after the market closed on January 21st Eastern Time. The data shows that the revenue for the quarter was $1.387 billion, exceeding analysts' average expectations of $1.29 billion. Adjusted earnings per share were $2.03, surpassing analysts' expectations of $1.73 by $0.30. Following the announcement, as of the time of writing, the company rose by 3.32% in after-hours trading on Tuesday. Driven by an increase in customer trading volume, commission income increased by 37% year-over-year to $477 million. Customer options and stock trading volume surged by 32% and 65% respectively, while futures trading volume decreased by 3%. Driven by an increase in average customer margin loans and customer credit balances, net interest income grew by 11% to $807 million. In the fourth quarter, the company's customer accounts increased by 30% year-over-year to 3.34 million, customer equity assets increased by 33% to $568.2 billion. Customer margin loans increased by 45% to $64.2 billion. Daily average revenue trades (DARTs) increased by a total of 61% to 3.12 million trades, enhancing trading activity and profitability. The company's Q4 other fees and services revenue increased by $26 million, or 47%, to $81 million, driven mainly by an increase in risk exposure expenses of $14 million and an increase in payment for order flow obligations mandated by exchanges of $4 million. Execution, clearing, and distribution expenses increased by 15% to $115 million, primarily due to higher rates by the U.S. Securities and Exchange Commission (SEC), newly introduced Cat fees by the Financial Industry Regulatory Authority (FINRA), and an increase in customer options and stock trading volume. The Board of Directors of Interactive Brokers Group, Inc. Class A announced that it will distribute a quarterly cash dividend of $0.25 per share on March 14, 2025. The company's adjusted pre-tax profit margin increased to 76%, higher than the 72% from the same period the previous year.