Interactive Brokers profit jumps, dividend nearly doubles
The move
Interactive Brokers reported third-quarter diluted earnings of $0.69 per share, up from $0.59 a year earlier, on GAAP net revenue of $1.91 billion, up from $1.66 billion. Commission revenue rose 12% to $602 million and net interest income climbed 19% to $1.15 billion. The company raised its quarterly dividend to $0.15 per share from $0.0875. Founder Thomas Peterffy also said in a CNBC interview that customers remain wary of autonomous AI trading tools even as the brokerage expands access to them.
Why it matters
It shows one of the largest retail and institutional brokerages still growing briskly even as rate cuts loom, with client caution about AI trading tools acting as a check on how fast that technology spreads through markets.
The bear case
Stock trading volume fell 24% from a year earlier, so some of the revenue strength is coming from interest income and fees rather than client trading activity.
What to watch
Whether AI-trading adoption among Interactive Brokers clients picks up in next quarter's results.