(Reuters) – Robinhood Markets posted an increase in fourth-quarter income on Tuesday as the web brokerage earned greater curiosity off prospects on mortgage repayments.
The Menlo Park, California-based firm reported internet curiosity income of $236 million within the quarter, up from $167 million a yr earlier.
The next-for-longer rate of interest atmosphere has benefited lenders throughout the monetary spectrum, together with Robinhood, with the trade capitalizing on curiosity funds.
Shares of the corporate rose 8% in prolonged buying and selling after the outcomes.
The monetary companies platform permits eligible prospects to borrow cash to buy securities and costs curiosity on the debt. This characteristic, generally known as ‘margin investing,’ has offered sanctuary to the retail investor-focused agency in latest quarters amid a deceleration in retail buying and selling.
Robinhood was on the heart of the 2021 retail buying and selling frenzy, pushed by mom-and-pop buyers who used the corporate’s commission-free platform to pump cash into so-called “meme shares” throughout the pandemic-era lockdowns.
The corporate’s income rose to $471 million within the three months ended Dec. 31, in contrast with $380 million a yr earlier.
(Reporting by Manya Saini in Bengaluru; Enhancing by Tasim Zahid)