May 14, 2018

E*TRADE Financial Corporation Reports Monthly Activity for April 2018

NEW YORK--(BUSINESS WIRE)-- E*TRADE Financial Corporation (NASDAQ:ETFC) today released its Monthly Activity Report for April 2018.

Daily Average Revenue Trades (DARTs) for April were 249,939, a 12 percent decrease from March and a 28 percent increase from the year-ago period. Derivatives represented 35 percent of DARTs during the month. The Company added 188,056 gross new brokerage accounts in April and ended the month with approximately 3.9 million brokerage accounts—an increase of 155,634 from March. The acquisition of Trust Company of America (TCA) added 145,891 to gross, net and end of period brokerage accounts during the month.

Net new brokerage assets were $18.2 billion in the month. During the month, customer security holdings increased by $21.1 billion, while brokerage-related cash remained flat, ending the month at $51.9 billion. The acquisition of TCA added $18.4 billion in net new brokerage assets which includes $17.2 billion of security holdings and $1.2 billion of sweep deposits. Customer margin balances decreased, ending the month at $10.4 billion. Customers were net buyers of approximately $0.9 billion in securities of which TCA accounted for $0.6 billion during the month.


Monthly Activity Data

  Apr-18   Mar-18   Apr-17   % Chg. M/M   % Chg. Y/Y
Trading days 21.0 21.0 19.0 N.M. N.M.
 
DARTs 249,939 284,682 196,022 (12)% 28%
Derivative DARTs 86,859 95,617 60,803 (9)% 43%
Derivative DARTs % 35 % 34 % 31 % 1% 4%
 
Gross new brokerage accounts(1) 188,056 44,473 38,904 323% 383%
Gross new stock plan accounts 32,358 36,635 23,276 (12)% 39%
Gross new banking accounts 278   372   252   (25)% 10%
Total gross new accounts 220,692 81,480 62,432 171% 253%
 
Net new brokerage accounts(1) 155,634 7,670 10,695 N.M. N.M.
Net new stock plan accounts 18,840 16,397 9,850 15% 91%
Net new banking accounts (1,757 ) (1,003 ) (1,671 ) (75)% (5)%
Net new accounts 172,717 23,064 18,874 N.M. N.M.
 
End of period brokerage accounts(1) 3,850,228 3,694,594 3,531,913 4% 9%
End of period stock plan accounts 1,551,169 1,532,329 1,471,388 1% 5%
End of period banking accounts 293,324   295,081   311,296   (1)% (6)%
End of period total accounts 5,694,721 5,522,004 5,314,597 3% 7%
 
Customer margin balances ($B)(2) $ 10.4 $ 10.5 $ 7.5 (1)% 39%
 

Customer Assets ($B)

Security holdings(1) $ 317.1 $ 296.0 $ 248.3 7% 28%
Sweep deposits(1) 37.9 38.0 31.6 —% 20%
Customer cash held by third parties(3) 5.3 5.0 12.1 6% (56)%
Customer payables (cash) 8.7   8.9   9.0   (2)% (3)%
Brokerage customer assets 369.0   347.9   301.0   6% 23%
Unexercised stock plan holdings (vested) 40.1 39.9 34.4 1% 17%
Savings, checking and other banking assets 4.7   5.0   5.3   (6)% (11)%
Total customer assets $ 413.8   $ 392.8   $ 340.7   5% 21%
 
Net new brokerage assets(1)(4) $ 18.2 $ 1.8 $ (0.2 ) N.M. N.M.
Net new banking assets(4) (0.3 ) 0.2   (0.2 ) (250)% (50)%
Net new customer assets(1) $ 17.9 $ 2.0 $ (0.4 ) N.M. N.M.
 
Brokerage related cash $ 51.9 $ 51.9 $ 52.7 —% (2)%
Other cash and deposits 4.7   5.0   5.3   (6)% (11)%
Total customer cash and deposits $ 56.6 $ 56.9 $ 58.0 (1)% (2)%
 
Managed products $ 5.6 $ 5.6 $ 4.4 —% 27%
Customer net (buy) / sell activity(1) $ (0.9 ) $ (3.6 ) $ (0.5 ) N.M. N.M.
 

(1) Includes the impact of the TCA acquisition, which was completed on April 9, 2018, as follows: gross new, net new, and end of period brokerage accounts of 145,891, and net new brokerage assets of $18.4 billion, which is reflected within total customer assets and includes $17.2 billion of security holdings and $1.2 billion of sweep deposits. These results also reflect post-acquisition activity of TCA, including customer net buy activity of $0.6 billion.

 
(2) Represents margin receivables held on the balance sheet and customer margin balances held by a third party clearing firm. The balances held by a third party were transferred to E*TRADE Securities during August 2017 in connection with the OptionsHouse integration.
 
(3) Customer cash held by third parties is held outside E*TRADE and includes money market funds and sweep deposit accounts at unaffiliated financial institutions. During August 2017, customer cash held by a third party clearing firm was transferred to E*TRADE Securities in connection with the OptionsHouse integration. Customer cash held by third parties is not reflected in the Company's consolidated balance sheet and is not immediately available for liquidity purposes.
 
(4) Net new brokerage assets are total inflows to all new and existing brokerage customer accounts less total outflows from all closed and existing brokerage customer accounts, excluding the effects of market movements in the value of brokerage customer assets. Net new banking assets are total inflows to all new and existing banking customer accounts less total outflows from all closed and existing banking customer accounts. The net new banking assets and net new brokerage assets metrics treat asset flows between E*TRADE entities in the same manner as unrelated third party accounts.
 

Historical metrics and financials can be found on E*TRADE Financial's corporate website at https://about.etrade.com.

About E*TRADE Financial

Securities products and services are offered by E*TRADE Securities LLC, Member FINRA/SIPC. Investment advisory services are offered through E*TRADE Capital Management, LLC, a Registered Investment Adviser. Commodity futures and options on futures products and services are offered by E*TRADE Futures LLC, Member NFA. Banking products and services are offered by E*TRADE Bank, a federal savings bank, Member FDIC, and E*TRADE Savings Bank, a federal savings bank, Member FDIC, which also provides custody solutions to Registered Investment Advisers. E*TRADE Securities LLC, E*TRADE Capital Management, LLC, E*TRADE Futures LLC, and E*TRADE Bank are separate but affiliated companies. More information is available at www.etrade.com.

Important Notices

E*TRADE Financial, E*TRADE, the E*TRADE logo, OptionsHouse and Trust Company of America are trademarks or registered trademarks of E*TRADE Financial Corporation. ETFC-G

© 2018 E*TRADE Financial Corporation. All rights reserved.

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Source: E*TRADE Financial Corporation

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