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The Federal Reserve raised its target range for the federal funds rate by a quarter point on Wednesday, September 16, to 3.75% to 4%, marking the central bank's first increase since July 2023.
For Interactive Brokers, this move translates to an estimated $81 million in additional net interest income per year, assuming maturing investments roll over at the new rates.
This figure represents a modest boost relative to the company's overall scale.
Net interest income is Interactive Brokers' largest revenue source, totaling $1.06 billion in the second quarter, which accounted for more than half of its $1.9 billion in total net revenues.
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