Automated global electronics broker, Interactive Brokers, has released its financial report for Q3 2021. According to the report, the broker had a slight fall in its earnings per share from $0.58 in the third quarter of 2021 to $0.43.
However, the press release indicated that the broker had net interest incomes of $79 million, which is 41% higher than the value recorded at the same period last year. The increases were majorly seen in its securities lending and higher-margin loan balances.
Additionally, commission revenues surged 11% to $32 million when it comes to options trading volumes. The firm reported an equity volume of $10 billion. However, the report also revealed that other incomes fell by $199 million when compared to the same period last year.
Interactive Brokers Marks Increase In Other Sections
The broker analyzed that the decrease came mainly from its $191 million strategic investment in UP Fintech Holdings Limited. Last year, the sector recorded a $6 million mark-to-market gain but decreased considerably to a $185 million mark-to-market loss this year.
Another decline was recorded in its currency diversification strategy, losing $3 million in the quarter, compared to the $27 million gained in the same quarter last year.
Providing More Products For Clients
Interactive Brokers has also been very busy in the market. Earlier this week, it rolled out registered Investment Advisors (RIAs), a crypto trading for financial advisors.
Following the launch, RAIs can represent their clients by trading Litecoin (LTC), Bitcoin (BTC), or Ethereum (ETH) through the Paxos blockchain platform.
This is coming barely a few weeks after Interactive Brokers rolled out its crypto trading services. During the launch, the company stated that cryptocurrency trading on its platform will attract one of the lowest commission rates at between 0.12% and 0.18% of the trade value. However, the actual commission rate will depend largely on the monthly volume.
Interactive Brokers said it realized a 50% pretax profit margin for the quarter, which is 61% less than the level last year.
However, it realized a 65% increase in the adjusted pretax profit margin, which is 59% higher compared to the level at the same period last year.
The board of Directors declared a cash dividend of $0.10 per share for the quarter. However, the dividend will be payable to shareholders on December 14, 2021.