Heightened volatility propels Virtu’s revenues in Q4 2020
Provider of financial services and products Virtu Financial Inc (NASDAQ:VIRT) today posted its financial results for the final quarter and full year of 2020.
Total revenues increased 69.3% to $676.7 million for the final quarter of 2020. The rise was on the back of heightened levels of volatility, bid-ask spreads and trading volumes across global markets and asset classes due to the COVID-19 pandemic. The result was also higher than the level of $656.1 million registered in the third quarter of 2020.
Trading income, net, increased 121.0% to $505.5 million for the fourth quarter of 2020, compared to $228.7 million for the same period in 2019. Net income totaled $197.7 million for this quarter, compared to a net loss of $29.4 million in the prior year quarter, which included costs related to the ITG acquisition.
Basic earnings per share for the final quarter of 2020 was $0.89 and diluted earnings per share was $0.88, compared to a basic and diluted loss per share of $0.16 for the same period in 2019.
Total revenues for the full year of 2020 increased 113.5% to $3,239.3 million, also impacted by the heightened levels of volatility, bid-ask spreads and trading volumes across global markets and asset classes due to the COVID-19 pandemic, compared to $1,517.5 million for 2019. Trading income, net, increased 173.3% to $2,493.2 million for this year, compared to $912.3 million for 2019.
Net income was $1,120.9 million for 2020 compared to a net loss of $103.7 million for 2019, which included costs related to the ITG acquisition.
Basic earnings per share for 2020 was $5.19 and diluted earnings per share was $5.16, compared to a basic and diluted loss per share of $0.53 for 2019.
Virtu’s Board of Directors declared a quarterly cash dividend of $0.24 per share. This dividend is payable on March 15, 2021 to shareholders of record as of March 1, 2021.