NEW YORK, July 21, 2026, 7:02 p.m. EDT
Interactive Brokers Group NASDAQ:IBKR reported a 23% increase in quarterly net interest income, even as lending spreads tightened. Average margin loans rose by 59%.
This combination sends the quarter’s strongest message to investors. Earnings were driven by client borrowing instead of increased rates. The average federal funds rate declined by 70 basis points compared to the same period last year.
Chief Financial Officer Paul Brody told analysts, “Despite this decline, our margin loan interest was up 39%.” The net interest margin declined to 1.93% from 2.07%. StockAnalysis
Brody stated that each 25-basis-point shift by the Fed affects annual net interest income by approximately $81 million. According to company data, this represents about 1.4% of the firm’s annualized adjusted pretax profit for the second quarter.
The stock ended the session up 3.0% at $94.42, but eased 0.7% to $93.80 in after-hours trading as of 7:02 p.m. EDT, following the close of regular U.S. markets.
The stock declined by 3.8% in the week ending July 17, before rising 4.3% on Monday and Tuesday. The S&P 500 dropped 1.6% last week.
Adjusted net revenue climbed 27% to $1.88 billion. Adjusted pretax profit grew 31% to $1.44 billion, giving a margin of 77%. Diluted earnings were 69 cents, up from 51 cents.
The operating comparison for the quarter highlights that higher balances counteracted the effect of reduced yields:
| Metric | Q2 2026 | Q2 2025 | Change |
|---|---|---|---|
| Average margin loans | $96.6 billion | $60.9 billion | +59% |
| Net interest margin | 1.93% | 2.07% | -14 basis points |
| GAAP net interest income | $1.06 billion | $0.86 billion | +23% |
| Commissions | $673 million | $516 million | +30% |
| Customer accounts | 5.19 million | 3.87 million | +34% |
| Daily average revenue trades | 4.82 million | 3.55 million | +36% |
The comparison is based on quarterly figures reported by the companies.
Trading activity remained consistent while the number of customers grew. Annualized trades per account increased to 207 from 206. The average commission per order was little changed at $2.64.
This kept commission growth close to the increase in trading volumes. Commissions rose by 30%, as daily average revenue trades went up 36%.
Customer equity increased 40% to $930.3 billion. Customer credit balances climbed 27% to $182.4 billion. Both contributed additional assets for interest income and trading purposes.
Risks: Margin loans at the end of the period climbed 67% to $108.5 billion, heightening exposure to softer markets and decreased client borrowing activity. Customer bad-debt expense increased to $10 million compared with $1 million previously. Founder Thomas Peterffy said the company remained “comfortable with the current levels.”
The Federal Reserve will hold its next rate test during its July 28-29 meeting. Economists surveyed in a Reuters poll released Tuesday anticipate the target range will stay at 3.50%-3.75%.
Keeping the rate steady would maintain the current spread environment. The main earnings question is whether levels of margin borrowing and trading activity will hold up.
