Get All Access for FREEMarket News & Research,
Live Transcripts & Audio,
and a whole lot more…
$ETFC said net new brokerage assets were $1.5Bil in November, 2017. During the month, customer security holdings increased by $6.8Bil, and brokerage-related cash increased by $0.3Bil to $53.1Bil. Customer margin balances increased $0.5Bil, ending the month at $8.9Bil. Customers were net buyers of approx. $1.6Bil in securities during the month.
$ETFC said Daily Average Revenue Trades (DARTs) for November, 2017 were 248,669, up 15% from October and up 19% from the year-ago period. Derivatives represented 31% of DARTs during the month. The company added 41,473 gross new brokerage accounts in November and ended the month with approx. 3.6MM brokerage accounts, flat from October.
$ETFC said Daily Average Revenue Trades for October 2017, were 215,689, a 28% increase from the year-ago period. The company added 37,636 gross new brokerage accounts in October and ended the month with approx 3.6MM brokerage accounts, which improved 4% YoY.
$ETFC assumed a dividend needs to really be built around sort of the core earnings and growth over time from that earnings stream. $ETFC's decision really in looking at it from a capital generation standpoint is a good portion of this is related to actions being taken within the capital plan. $ETFC believes buyback is the right path for this.
$ETFC's net interest income for 2Q17 increased 12% to $356MM, as it grew average interest earning assets by $3.2Bil and net interest margin increased 11 basis points to 274 basis points. This was driven by impact of March Fed rate hike, higher customer margin balances, and strong securities lending activity attributable to a popular March IPO.
As moving into 2H17, $ETFC is poised to execute on several critical initiatives: completion of the integration of OptionsHouse, continued balance sheet growth, and the launch of a new $1Bil share repurchase program. This is enabled by its strong financial performance and a reduction in consolidated Tier 1 leverage ratio threshold to 6.5%.
$ETFC's daily average revenue trades (DARTs) for 2Q17 was 208,000 and 32% in derivatives. Net new brokerage accounts was 41,000 and annualized growth rate was 4.7%. Net new brokerage assets was $2.6Bil, with annualized growth rate of 3.5% and end of period total customer assets was $348.2Bil.
$ETFC's bottom-line results for 2Q17 included a net benefit of $50MM or $0.18 per share, related to a benefit to provision for loan losses. This is partially offset by one-time market data expenses as well as expenses associated with the OptionsHouse integration and crossing the $50Bil regulatory threshold.
$ETFC reported a jump in 2Q17 earnings driven by a benefit to provision for loan losses as well as higher revenue and strong customer activity. Derivatives increased to a record portion of customer trades during the quarter. Net income rose to $193MM or $0.70 per share from $133MM or $0.48 per share last year. Revenue grew to $577MM from $474MM.
$ETFC released its Monthly Activity Report for May 2017. Daily Average Revenue Trades (DARTs) for May were 211,516, up 8% from April and a 42% from the year-ago period. The company added 46,839 gross new brokerage accounts in May and ended the month with about 3.6MM brokerage accounts, an increase of 20,415 from April.
$ETFC said net new brokerage assets were negative $0.2Bil in April 2017. During the month, customer security holdings increased by $4.5Bil and brokerage-related cash decreased by $0.8Bil to $52.7Bil. Customer margin balances increased $0.2Bil, ending the month at $7.5Bil. Customers were net buyers of about $0.5Bil in securities during the month.
$ETFC said Daily Average Revenue Trades (DARTs) for April 2017 were 196,022, up 23% from April 2016. Derivatives represented 31% of DARTs. The company added 38,904 gross new brokerage accounts in April and ended the month with about 3.5MM brokerage accounts, an increase of 10,695 from March 2017.
Financial services company $ETFC posted a decline in 1Q17 earnings despite higher revenue. Net income declined 5.22% to $145MM, or $0.48 per diluted share from $153MM, or $0.53 per diluted share a year ago. Total net revenue rose 17.16% YoY to $553MM. Total non-interest expense increased $30MM to $342MM from $312MM in the year-ago period.