Interactive Brokers Reports 71% Commission Revenue Jump in Q4 2020

Interactive Brokers, an automated global electronic broker, has announced its financial results for the three months ended 31 December 2020, reporting $288 million commission revenue in the last quarter, a 71 percent jump compared to the same period in 2019.

According to the results, the total net revenues jumped 19.8 percent in Q4 of 2020 and reached $599 million, comparing to net revenues of $500 million for the same period in 2019. Adjusted net revenues increased 16 percent to $582 million, higher than the $503 million in the same period a year ago.

Income before income taxes was $392 million for this quarter, which is up 26 percent year-over-year from $312 million.

The pretax profit margin was 62 percent higher than the 4th quarter in last year, reaching 65 percent for this quarter.

Diluted EPS reached $0.81 in the last quarter, a significant rise compared to $0.57 for the same period in 2019. Further, the adjusted diluted EPS was $0.69 for this quarter compared to $0.58 for the year-ago quarter.

The broker reported a 22 percent decline ($62 million) in net interest income from the year-ago quarter as the average Federal Funds effective rate decreased to 0.09 percent from 1.65 percent in the year-ago quarter.