Interactive Brokers rises as commission revenue, interest income drive Q2 earnings beat

Interactive Brokers Group (IBKR) was trading higher after the financial exchange's second-quarter earnings exceeded analyst estimates on higher commission revenue and interest income.

Adjusted diluted earnings per share came in at $0.69, above the year-ago quarter's $0.51 and the consensus estimate of $0.64.

Net revenues stood at $1.90B, up from $1.48B a year ago and $1.79B consensus.

Shares were 2.41% higher at $96.70 during post-market trading on Tuesday.

Commission revenue rose 30% year-over-year to $673M on higher customer trading volumes, which increased by 17%, 14%, and 2% in options, stocks, and futures, respectively.

Net interest income was up 23% to $1.06B on the back of higher average customer margin loans and customer credit balances.

Other fees and services increased 40% to $87M, while execution, clearing, and distribution fees increased 22% to $142M.

Pretax profit margin rose to 77% for the quarter, compared to 75% a year ago.

The board declared a dividend of $0.0875 per share, in line with the previous quarter. The dividend is payable on September 14 to shareholders of record as of September 1.

Earnings call is scheduled for 4:30 PM ET today.