E*TRADE FINANCIAL Corporation (NASDAQ: ETFC) today released its Monthly Activity Report for October. The Company ended the month with brokerage accounts of more than 2.7 million, including gross new brokerage accounts of 30,348 and net new brokerage accounts of 3,360. Total accounts ended the month at more than 4.5 million. Total Daily Average Revenue Trades (“DARTs”) for October were 194,662 – a decrease of 5 percent from September and 22 percent from the year ago period. Year-to-date through October, DARTs are up 9 percent from the same period last year.
Customer security holdings declined by $5 billion in October and brokerage-related cash remained essentially flat, while bank-related cash and deposits declined by $0.5 billion, as the Company continued to execute its ongoing strategy to reduce bank-related deposits. Net brokerage assets grew by $0.6 billion (1) in the month; however, this growth was offset by the planned outflow of bank-related deposits. Customers were net buyers of approximately $0.9 billion in securities in October.
Monthly Activity Data
| Oct-09 | Sep-09 | Oct-08 | % Chg. M/M | % Chg. Y/Y | |||||||||
| Trading days | 22.0 | 21.0 | 23.0 | N.M. | N.M. | ||||||||
| Daily Average Revenue Trades | 194,662 | 205,526 | 248,817 | (5.3)% | (21.8)% | ||||||||
| Gross new brokerage accounts | 30,348 | 31,345 | 96,422 | (3.2)% | (68.5)% | ||||||||
| Gross new stock plan accounts | 19,411 | 10,562 | 13,981 | 83.8 % | 38.8 % | ||||||||
| Gross new banking accounts | 2,648 | 2,853 | 21,072 | (7.2)% | (87.4)% | ||||||||
| Total gross new accounts | 52,407 | 44,760 | 131,475 | 17.1 % | (60.1)% | ||||||||
| Net new brokerage accounts | 3,360 | (4,303) | 57,130 | N.M. | N.M. | ||||||||
| Net new stock plan accounts | 7,216 | 3,190 | (2,962) | N.M. | N.M. | ||||||||
| Net new banking accounts | (13,145) | (11,173) | 3,023 | N.M. | N.M. | ||||||||
| Net new accounts | (2,569) | (12,286) | 57,191 | N.M. | N.M. | ||||||||
| End of period brokerage accounts | 2,732,497 | 2,729,137 | 2,577,232 | 0.1 % | 6.0 % | ||||||||
| End of period stock plan accounts | 1,025,231 | 1,018,015 | 1,017,100 | 0.7 % | 0.8 % | ||||||||
| End of period banking accounts | 745,910 | 759,055 | 814,195 | (1.7)% | (8.4)% | ||||||||
| End of period total accounts | 4,503,638 | 4,506,207 | 4,408,527 | (0.1)% | 2.2 % | ||||||||
Customer Assets ($MM) | |||||||||||||
| Security holdings | $ | 109,026 | $ | 114,229 | $ | 87,548 | (4.6)% | 24.5 % | |||||
| Brokerage related cash | 20,259 | 20,295 | 16,444 | (0.2)% | 23.2 % | ||||||||
| Other customer cash and deposits | 13,620 | 14,166 | 15,386 | (3.9)% | (11.5)% | ||||||||
Total customer assets | $ | 142,905 | $ | 148,690 | $ | 119,378 | (3.9)% | 19.7 % | |||||
| Net new customer assets ($B) | $ | 0.0 | $ | (0.2) | $ | 1.6 | N.M. | N.M. | |||||
Historical Monthly Activity Data from January 2006 to October 2009 can be found on the E*TRADE FINANCIAL investor relations site at https://investor.etrade.com.
About E*TRADE FINANCIAL
The E*TRADE FINANCIAL family of companies provides financial services including online brokerage and related banking products and services to retail investors. Specific business segments include Trading and Investing, and Balance Sheet Management. Securities products and services are offered by E*TRADE Securities LLC (Member FINRA/SIPC). Bank products and services are offered by E*TRADE Bank, a Federal savings bank, Member FDIC, or its subsidiaries.
Important Notices
E*TRADE FINANCIAL, E*TRADE and the E*TRADE logo are trademarks or registered trademarks of E*TRADE FINANCIAL Corporation.
© 2009 E*TRADE FINANCIAL Corporation. All rights reserved.
1 $0.6 billion of net brokerage asset growth in October includes approximately $0.1 billion of inter-company asset flows.
Contacts:
Pam Erickson, 617-296-6080
pam.erickson@etrade.com
or
E*TRADE
FINANCIAL Investor Relations Contact
Brett Goodman,
646-521-4406
brett.goodman@etrade.com