Press Release Details

section image

E*TRADE Financial Corporation Reports Monthly Activity for October 2018

Nov 14, 2018

NEW YORK--(BUSINESS WIRE)--Nov. 14, 2018-- E*TRADE Financial Corporation (NASDAQ:ETFC) today released its Monthly Activity Report for October 2018.

Daily Average Revenue Trades (DARTs) for October were 301,625, a seven percent increase from September and a 40 percent increase from the year-ago period. Derivatives represented 32 percent of DARTs during the month. The Company added 46,760 gross new brokerage accounts in October and ended the month with approximately 4.0 million brokerage accounts—an increase of 3,012 from September.

Net new brokerage assets were $1.2 billion in the month. During the month, customer security holdings decreased by $25.5 billion, and brokerage-related cash decreased by $1.9 billion to $51.4 billion. Customer margin balances remained flat, ending the month at $11.2 billion. Customers were net buyers of approximately $2.7 billion in securities during the month.

Monthly Activity Data

                   
                     
    Oct-18   Sep-18   Oct-17   % Chg. M/M   % Chg. Y/Y
Trading days   23.0     19.0     22.0     N.M.   N.M.
                     
DARTs (1)   301,625     281,408     215,689     7 %   40 %
Derivative DARTs   95,040     86,729     66,918     10 %   42 %
Derivative DARTs %(1)   32 %   31 %   31 %   1 %   1 %
                     
Gross new brokerage accounts   46,760     69,902     37,636     (33 )%   24 %
Gross new stock plan accounts   24,454     43,492     22,989     (44 )%   6 %
Gross new banking accounts   4,521     1,996     293     127 %   N.M.
Total gross new accounts   75,735     115,390     60,918     (34 )%   24 %
                     
Net new brokerage accounts(1)   3,012     38,425     (962 )   (92 )%   N.M.
Net new stock plan accounts   8,586     28,570     9,143     (70 )%   (6 )%
Net new banking accounts   1,633     36     (1,886 )   N.M.   N.M.
Net new accounts   13,231     67,031     6,295     (80 )%   110 %
                     
End of period brokerage accounts(1)   3,952,411     3,949,399     3,587,752     %   10 %
End of period stock plan accounts   1,744,261     1,735,675     1,484,389     %   18 %
End of period banking accounts   293,895     292,262     302,249     1 %   (3 )%
End of period total accounts   5,990,567     5,977,336     5,374,390     %   11 %
                     
Customer margin balances ($B)   $ 11.2     $ 11.2     $ 8.4     %   33 %
                     

Customer Assets ($B)

                   
Security holdings   $ 338.7     $ 364.2     $ 278.5     (7 )%   22 %
Sweep deposits   36.9     38.0     36.6     (3 )%   1 %
Customer cash held by third parties(2)   4.7     4.8     6.9     (2 )%   (32 )%
Customer payables (cash)   9.8     10.5     9.3     (7 )%   5 %
Brokerage customer assets   390.1     417.5     331.3     (7 )%   18 %
Unexercised stock plan holdings (vested)   40.9     50.2     37.0     (19 )%   11 %
Savings, checking and other banking assets   5.3     5.1     5.0     4 %   6 %
Total customer assets   $ 436.3     $ 472.8     $ 373.3     (8 )%   17 %
                     
Net new brokerage assets(1)(3)   $ 1.2     $ 1.0     $ 0.6     20 %   100 %
Net new banking assets(3)   0.2     0.1         100 %   N.M.
Net new customer assets(1)   $ 1.4     $ 1.1     $ 0.6     27 %   133 %
                     
Brokerage related cash   $ 51.4     $ 53.3     $ 52.8     (4 )%   (3 )%
Other cash and deposits   5.3     5.1     5.0     4 %   6 %
Total customer cash and deposits   $ 56.7     $ 58.4     $ 57.8     (3 )%   (2 )%
                     
Managed products   $ 5.9     $ 6.2     $ 5.1     (5 )%   16 %
Customer net (buy) / sell activity(1)   $ (2.7 )   $ (1.6 )   $ (0.1 )   N.M.   N.M.

(1) Includes the impact of the April 9, 2018, Trust Company of America (TCA) acquisition, including post-acquisition activity, as follows:

  • October 2018: net new brokerage accounts 821, end of period brokerage customer assets of $18.9 million, net new brokerage assets of $190 million, DARTs of 2,972, and customer net sell activity of $0.1 billion.
  • September 2018: net new brokerage accounts 922, end of period brokerage customer assets of $19.7 million, net new brokerage assets of $127 million, DARTs of 3,264, and customer net sell activity of $0.1 billion.

(2) Customer cash held by third parties is held outside E*TRADE and includes money market funds and sweep deposit accounts at unaffiliated financial institutions. Customer cash held by third parties is not reflected in the Company's consolidated balance sheet and is not immediately available for liquidity purposes.

(3) 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

E*TRADE Financial and its subsidiaries provide financial services including brokerage and banking products and services to retail customers. Securities products and services are offered by E*TRADE Securities LLC (Member FINRA/SIPC). Commodity futures and options on futures products and services are offered by E*TRADE Futures LLC (Member NFA). Managed Account Solutions are offered through E*TRADE Capital Management, LLC, a Registered Investment Adviser. Bank products and services are offered by E*TRADE Bank, and RIA custody solutions are offered by E*TRADE Savings Bank, both of which are federal savings banks (Members FDIC). E*TRADE Securities LLC, E*TRADE Capital Management, LLC, E*TRADE Futures LLC, E*TRADE Bank and E*TRADE Savings Bank are separate but affiliated companies. More information is available at www.etrade.com.

Important Notices

E*TRADE, E*TRADE Financial, the E*TRADE logo 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.

Source: E*TRADE Financial Corporation

E*TRADE Media Relations
646-521-4418
mediainq@etrade.com
or
E*TRADE Investor Relations
646-521-4406
ir@etrade.com