Electronic trading major Interactive Brokers Group, Inc. (NASDAQ:IBKR) has posted a set of solid metrics for the third quarter of 2020, with active trading supporting revenues.

Diluted earnings per share amounted to $0.58 in the quarter ended September 30, 2020, markedly higher than the result of $0.45 for the same period in 2019. Adjusted diluted earnings per share amounted to $0.53 for this quarter compared to $0.57 for the year-ago quarter.

Net revenues were $548 million and income before income taxes was $334 million this quarter, compared to net revenues of $466 million and income before income taxes of $281 million for the same period in 2019. Adjusted net revenues were $518 million and adjusted income before income taxes was $304 million this quarter, compared to adjusted net revenues of $525 million and adjusted income before income taxes of $340 million for the same period in 2019.

Commission revenue marked strong growth in the third quarter of 2020, increasing $92 million, or 49%, from the year-ago quarter on the back of higher customer trading volumes within an active trading environment worldwide.

Net interest income, however, decreased $96 million, or 33%, from the year-ago quarter as the average Federal Funds effective rate decreased to 0.09% from 2.19% in the year-ago quarter.

Other income increased $76 million from the year-ago quarter. This increase was mainly comprised of:

• $74 million related to Interactive Brokers’ currency diversification strategy, which gained $27 million this quarter compared to a loss of $47 million in the same period in 2019;
• $19 million related to Interactive Brokers’ strategic investment in Up Fintech Holding Limited (“Tiger Brokers”), which swung to a $6 million mark-to-market gain this quarter from a $13 million mark-to-market loss in the same period in 2019;
• $13 million impairment loss on Interactive Brokers’ investment in OneChicago Exchange recognized in this quarter.

The Interactive Brokers Group, Inc. Board of Directors declared a quarterly cash dividend of $0.10 per share. This dividend is payable on December 14, 2020 to shareholders of record as of December 1, 2020.

Let’s note that, in the third quarter of 2020, the number of Interactive Brokers’ customer accounts increased 47% from the year-ago quarter to 981,000.