July 21 (Reuters) - Trading platform Interactive Brokers IBKR.O reported a 35% rise in second-quarter profit on Tuesday, bolstered by elevated trading activity due to a sharp rally in U.S. equity markets during the period.
The S&P 500 .SPX and Nasdaq posted strong gains during the April-to-June quarter as investors looked past geopolitical uncertainty and remained optimistic about AI-driven earnings growth.
Here are some more details:
The broker's net interest income rose 23% to $1.06 billion in the second quarter, as a result of higher average customer margin loans and credit balances.
Commission revenue - the amount the brokerage earns when clients execute trades - increased 30% in the reported quarter compared to the prior year supported by higher customer trading volumes across major asset classes, including equities, futures and options.
Daily average revenue trades, or DARTs, which signify the average trades per day generating commissions or fees, rose 36% in the quarter to 4.82 million trades.
The Greenwich, Connecticut-based company reported net income available for common stockholders of $312 million, or 69 cents per share, for the three months ended June 30, compared with $224 million, or 51 cents per share, for the same period, in the prior year.
Peer brokerage firm Charles Schwab SCHW.N also posted a record second-quarter profit, boosted by robust trading activity and increased asset management fees.
(Reporting by Rishab Shaju in Bengaluru; Editing by Shailesh Kuber)