Interactive Brokers Group’s Q3 2021 Net Interest Incomes Surge by 41%

Interactive Brokers Group (Nasdaq: IBKR) released its earnings results for the third quarter of 2021, noting a strong increase in its net interest income. According to the press release, such incomes jumped $79 million, which is 41% up from the year-ago quarter on higher-margin loan balances and strong securities lending activity.

Also, commission revenues soared $32 million, which is up 11% compared to the same period last year on higher customer stock and options trading volumes. The total equity reported for this quarter was $10 billion, Interactive Brokers said. However, the brokerage noted that other incomes declined by $199 million from the same quarter in 2020.

“This decrease was mainly comprised of (1) $191 million related to our strategic investment in Up Fintech Holding Limited (“Tiger Brokers”), which decreased to a $185 million mark-to-market loss this quarter from a $6 million mark-to-market gain in the same period in 2020; and (2) $30 million related to our currency diversification strategy, which lost $3 million this quarter compared to a gain of $27 million in the same period in 2020; partially offset by (3) the non-recurrence of a $13 million impairment loss on our investment in OneChicago Exchange recognized in the year-ago quarter,” the report noted.

On the other hand, Interactive Brokers Group’s Board of Directors declared a quarterly cash dividend of $0.10 per share.

Recent Announcements on Cryptos

On Monday, the US-listed company announced the launch of cryptocurrency trading for financial advisors, known as Registered Investment Advisors (RIAs), in the United States. RIAs are now able to trade and custody Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), and Bitcoin Cash (BCH) on behalf of clients via Paxos, a blockchain infrastructure platform.

The possibility of RIAs handling cryptos via Interactive Brokers was announced a month after the US-listed brokerage launched its crypto trading services. The firm said that crypto trading on the platform would have commissions between 0.12% and 0.18% of the trade value, depending on the monthly volume.

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