E*TRADE Financial Corporation (NASDAQ: ETFCD) today released its Monthly Activity Report for May 2010.
Daily Average Revenue Trades (“DARTs”) for May were 196,074, an eight percent increase from April and a 10 percent decrease from the year ago period. The Company ended the month with nearly 2.7 million brokerage accounts – including gross new brokerage accounts of 30,349 and net new brokerage accounts of 5,055 during the month, totaling 22,682 net new brokerage accounts quarter-to-date. Total accounts ended the month at approximately 4.3 million.
Net new brokerage assets were positive $1.0 billion in the month, totaling $3.9 billion year-to-date. During the month, customer security holdings decreased by six percent, or $7.1 billion, and brokerage-related cash declined by $0.6 billion to $20.9 billion, as customers were net buyers of approximately $1.6 billion in securities in May. Bank-related cash and deposits declined by $0.5 billion in the month.
The Company also updated delinquency statistics in its loan portfolio. For the Company’s entire loan portfolio, total special mention delinquencies (30 to 89 days delinquent) declined by 12 percent from March 31, 2010 to May 31, 2010, while total “at risk” delinquencies (30 to 179 days delinquent) declined by 10 percent during the same period.
Detailed information concerning loan delinquencies is provided below, in the second table of this release.
Monthly Activity Data | ||||||||||||||||
| May-10 | Apr-10 | May-09(1) | % Chg. M/M | % Chg. Y/Y | ||||||||||||
| Trading days | 20.0 | 21.0 | 20.0 | N.M. | N.M. | |||||||||||
| DARTs | 196,074 | 181,556 | 218,754 | 8.0 % | (10.4)% | |||||||||||
| Gross new brokerage accounts | 30,349 | 45,744 | 41,540 | (33.7)% | (26.9)% | |||||||||||
| Gross new stock plan accounts | 17,472 | 13,108 | 16,611 | 33.3 % | 5.2 % | |||||||||||
| Gross new banking accounts | 2,124 | 2,296 | 4,865 | (7.5)% | (56.3)% | |||||||||||
Total gross new accounts | 49,945 | 61,148 | 63,016 | (18.3)% | (20.7)% | |||||||||||
| Net new brokerage accounts | 5,055 | 17,627 | 23,115 | N.M. | N.M. | |||||||||||
| Net new stock plan accounts | 4,707 | 158 | 10,383 | N.M. | N.M. | |||||||||||
| Net new banking accounts | (11,055 | ) | (11,326 | ) | (10,307 | ) | N.M. | N.M. | ||||||||
| Net new accounts | (1,293 | ) | 6,459 | 23,191 | N.M. | N.M. | ||||||||||
| End of period brokerage accounts | 2,654,659 | 2,649,604 | 2,629,834 | 0.2 % | 0.9 % | |||||||||||
| End of period stock plan accounts | 1,031,068 | 1,026,361 | 1,016,765 | 0.5 % | 1.4 % | |||||||||||
| End of period banking accounts | 578,219 | 589,274 | 808,815 | (1.9)% | (28.5)% | |||||||||||
| End of period total accounts | 4,263,946 | 4,265,239 | 4,455,414 | 0.0 % | (4.3)% | |||||||||||
Customer Assets ($B) | ||||||||||||||||
| Security holdings | $ | 103.8 | $ | 110.9 | $ | 80.0 | (6.4)% | 29.8 % | ||||||||
| Customer payables (cash) | 3.8 | 5.1 | 4.2 | (25.5)% | (9.5)% | |||||||||||
| Customer cash balances held by third parties | 3.1 | 3.1 | 2.7 | 0.0 % | 14.8 % | |||||||||||
| Unexercised stock plan customer options (vested) | 16.4 | 19.3 | 12.3 | (15.0)% | 33.3 % | |||||||||||
| Customer assets in brokerage and stock plan accounts | 127.1 | 138.4 | 99.2 | (8.2)% | 28.1 % | |||||||||||
| Sweep deposit accounts | 14.0 | 13.3 | 10.8 | 5.3 % | 29.6 % | |||||||||||
| Savings and transaction accounts | 9.3 | 9.7 | 14.3 | (4.1)% | (35.0)% | |||||||||||
| CDs | 0.9 | 1.0 | 1.9 | (10.0)% | (52.6)% | |||||||||||
| Customer assets in banking accounts | 24.2 | 24.0 | 27.0 | 0.8 % | (10.4)% | |||||||||||
| Total customer assets | $ | 151.3 | $ | 162.4 | $ | 126.2 | (6.8)% | 19.9 % | ||||||||
| Net new brokerage assets ($B)(2) | $ | 1.0 | $ | 0.7 | $ | 0.8 | N.M. | N.M. | ||||||||
| Net new banking assets ($B)(2) | (0.4 | ) | (0.5 | ) | (0.5 | ) | N.M. | N.M. | ||||||||
| Net new customer assets ($B)(2) | $ | 0.6 | $ | 0.2 | $ | 0.3 | N.M. | N.M. | ||||||||
| Brokerage related cash ($B) | $ | 20.9 | $ | 21.5 | $ | 17.7 | (2.8)% | 18.1 % | ||||||||
| Other customer cash and deposits ($B) | 10.2 | 10.7 | 16.2 | (4.7)% | (37.0)% | |||||||||||
| Total customer cash and deposits ($B) | $ | 31.1 | $ | 32.2 | $ | 33.9 | (3.4)% | (8.3)% | ||||||||
(1) The period presented has been updated to exclude
international local activity.
(2) Net new customer
assets are total inflows to all new and existing customer accounts less
total outflows from all closed and existing 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.
Loan Delinquency Data | |||||||||||||||
| May-10 | Apr-10 | Mar-10 | % Chg. | % Chg. | % Chg. | ||||||||||
One- to Four-Family ($MM) | |||||||||||||||
| Current | $ | 7,787 | $ | 7,950 | $ | 8,038 | (2)% | (1)% | (3)% | ||||||
| 30-89 days delinquent | 443 | 456 | 527 | (3)% | (13)% | (16)% | |||||||||
| 90-179 days delinquent | 313 | 316 | 339 | (1)% | (7)% | (8)% | |||||||||
| Total 30-179 days delinquent | 756 | 772 | 866 | (2)% | (11)% | (13)% | |||||||||
| 180+ days delinquent(3) | 878 | 880 | 881 | (0)% | (0)% | (0)% | |||||||||
| Total delinquent loans | 1,634 | 1,652 | 1,747 | (1)% | (5)% | (6)% | |||||||||
| Gross loans receivable(4) | $ | 9,421 | $ | 9,602 | $ | 9,785 | (2)% | (2)% | (4)% | ||||||
Home Equity ($MM) | |||||||||||||||
| Current | $ | 6,876 | $ | 6,989 | $ | 7,086 | (2)% | (1)% | (3)% | ||||||
| 30-89 days delinquent | 207 | 197 | 214 | 5 % | (8)% | (3)% | |||||||||
| 90-179 days delinquent | 155 | 163 | 170 | (5)% | (4)% | (9)% | |||||||||
| Total 30-179 days delinquent | 362 | 360 | 384 | 1 % | (6)% | (6)% | |||||||||
| 180+ days delinquent(3) | 61 | 63 | 56 | (3)% | 13 % | 9 % | |||||||||
| Total delinquent loans | 423 | 423 | 440 | 0 % | (4)% | (4)% | |||||||||
| Gross loans receivable(4) | $ | 7,299 | $ | 7,412 | $ | 7,526 | (2)% | (2)% | (3)% | ||||||
Consumer and Other ($MM) | |||||||||||||||
| Current | $ | 1,688 | $ | 1,720 | $ | 1,750 | (2)% | (2)% | (4)% | ||||||
| 30-89 days delinquent | 26 | 27 | 28 | (4)% | (4)% | (7)% | |||||||||
| 90-179 days delinquent | 6 | 6 | 5 | 0 % | 20 % | 20 % | |||||||||
| Total 30-179 days delinquent | 32 | 33 | 33 | (3)% | 0 % | (3)% | |||||||||
| 180+ days delinquent(3) | 1 | 1 | 1 | 0 % | 0 % | 0 % | |||||||||
| Total delinquent loans | 33 | 34 | 34 | (3)% | 0 % | (3)% | |||||||||
| Gross loans receivable(4) | $ | 1,721 | $ | 1,754 | $ | 1,784 | (2)% | (2)% | (4)% | ||||||
Total Loans Receivable ($MM) | |||||||||||||||
| Current | $ | 16,351 | $ | 16,659 | $ | 16,874 | (2)% | (1)% | (3)% | ||||||
| 30-89 days delinquent | 676 | 680 | 769 | (1)% | (12)% | (12)% | |||||||||
| 90-179 days delinquent | 474 | 485 | 514 | (2)% | (6)% | (8)% | |||||||||
| Total 30-179 days delinquent | 1,150 | 1,165 | 1,283 | (1)% | (9)% | (10)% | |||||||||
| 180+ days delinquent(3) | 940 | 944 | 938 | (0)% | 1 % | 0 % | |||||||||
| Total delinquent loans | 2,090 | 2,109 | 2,221 | (1)% | (5)% | (6)% | |||||||||
| Total gross loans receivable(4) | $ | 18,441 | $ | 18,768 | $ | 19,095 | (2)% | (2)% | (3)% | ||||||
(3) Loans that are delinquent for 180+ days have been written
down to estimated current property value.
(4) Includes
unpaid principal balances and premiums (discounts).
Historical metrics and financials through May 2010 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. ETFC-G
Important Notices
E*TRADE Financial, E*TRADE and the E*TRADE logo are trademarks or registered trademarks of E*TRADE Financial Corporation.
© 2010 E*TRADE Financial Corporation. All rights reserved.
Contacts:
Susan Hickey, 646-521-4675
susan.hickey@etrade.com
or
E*TRADE
Financial Investor Relations Contact
Brett Goodman,
646-521-4406
brett.goodman@etrade.com
