InteractiveBrokers Group reported higher second-quarter profit and revenue on Tuesday, asgrowth in customer accounts, trading volumes and margin lending lifted its mainbusiness lines. Theautomated broker posted net revenue of $1.90 billion for the three monthsthrough June, up 28% from $1.48 billion a year earlier, while diluted earningsper share rose to $0.69 from $0.51.Incomebefore taxes came in at $1.46 billion, a 32% annual increase, with the pretaxmargin at 77%. The Greenwich, Connecticut based firm ended June with 5.19million customer accounts, up 34% from a year earlier and 9% above the level itreported for the first quarter. Customer equity reached $930.3billion, up 40% on the year and 18% on the quarter.Interactive Broker’s Tradingand Lending Power the Top LineCommissionrevenue rose 30% to $673 million, which the company tied to higher customertrading. Options volume increased 17%, stock volume 14% and futures volume 2%from a year earlier. Daily average revenue trades, a common gauge of activity,climbed 36% to 4.82 million.Netinterest income, the firm's largest revenue source, rose 23% to $1.06 billion.The company attributed the gain to higher average customer margin loans andcredit balances. Margin loans ended the quarter at $108.5 billion, up 67%,while customer credit balances rose 27% to $182.4 billion.The brokerhas widened its product menu over the past year, bundling Kalshi, CME and ForecastExprediction-market contracts into a single interface for retail and institutional clients.Figuresas reported by Interactive Brokers for the quarter ended June 30, 2026.Statements are unaudited.Falling Yields Squeeze theInterest MarginBehind thehigher interest income, the profitability of that lending narrowed. Netinterest margin slipped to 1.93% from 2.07% a year earlier, as yields fellacross the firm's interest-earning assets.Theannualized yield on customer margin loans dropped to 4.10% from 4.67%, and theyield on segregated cash and securities fell to 3.32% from 3.86%. In otherwords, the growth in net interest income came from bigger balances rather thanbetter rates.The pretaxmargin held at 77%, above the year-ago 75% but under the 79% the company reported for the third quarter of2025.Retail Peers Report aCooler BackdropInteractiveBrokers caters to active traders, financial advisors and institutions, a basethat kept trading through the quarter. The picture has looked differentelsewhere in retail. Robinhood reported slower revenue growth in the firstquarter, with netrevenue up 15% and crypto trading volumes down.Robinhood'sown strategists have flagged a pullback, telling clients that net buying has trailed off as US equity gains slow in 2026.InteractiveBrokers has leaned on new products to keep engagement up, adding theprediction-market venues noted above and AI trading tools from ChatGPT andGrok for optionsand futures traders. Commissionper cleared order was little changed at $2.64, against $2.65 a year earlier,meaning the jump in commissions reflected volume, not higher pricing.Dividend Held Steady asCurrency Basket Trims EarningsThe boarddeclared a quarterly dividend of $0.0875 a share, unchanged from the priorquarter and payable September 14 to holders of record on September 1. Totalequity stood at $22.3 billion at the end of June.InteractiveBrokers also keeps its net worth in a basket of 10 major currencies it callsthe GLOBAL. This quarter the strategy cut comprehensive earnings by $36 millionas the dollar value of the basket fell about 0.21%, a reversal from early 2025,when a stronger basket added $127 million.Reportednet income was $1.34 billion, though most of it, $1.03 billion, wasattributable to noncontrolling interests under the group's holding structure,leaving $312 million for common shareholders.This article was written by Damian Chmiel at www.financemagnates.com.