Market Overview

E*TRADE Financial Corporation Reports Monthly Activity for July 2018

Share:

E*TRADE Financial Corporation (NASDAQ:ETFC) today released its Monthly
Activity Report for July 2018.

Daily Average Revenue Trades (DARTs) for July were 250,787, an eight
percent decrease from June and a 20 percent increase from the year-ago
period. Derivatives represented 34 percent of DARTs during the month.
The Company added 37,360 gross new brokerage accounts in July and ended
the month with approximately 3.9 million brokerage accounts—a decrease
of 4,235 from June.

Net new brokerage assets were $0.5 billion in the month. During the
month, customer security holdings increased by $7.8 billion, and
brokerage-related cash decreased by $0.5 billion to $52.3 billion.
Customer margin balances remained flat, ending the month at $11.0
billion. Customers were net buyers of approximately $0.9 billion in
securities during the month.

                   

Monthly Activity Data

Jul-18 Jun-18 Jul-17 % Chg. M/M % Chg. Y/Y
Trading days 20.5 21.0 19.5 N.M. N.M.
 
DARTs (1) 250,787 273,190 208,156 (8)% 20%
Derivative DARTs 84,177 88,695 71,070 (5)% 18%
Derivative DARTs %(1) 34 % 32 % 34 % 2% —%
 
Gross new brokerage accounts 37,360 40,319 29,287 (7)% 28%
Gross new stock plan accounts 42,485 115,128 32,804 (63)% 30%
Gross new banking accounts 1,451   1,374   242   6% 500%
Total gross new accounts 81,296 156,821 62,333 (48)% 30%
 
Net new brokerage accounts(1) (4,235 ) 9,780 (3,007 ) N.M. (41)%
Net new stock plan accounts 27,307 100,114 18,238 (73)% 50%
Net new banking accounts (359 ) (431 ) (1,500 ) 17% 76%
Net new accounts 22,713 109,463 13,731 (79)% 65%
 
End of period brokerage accounts 3,878,001 3,882,236 3,559,482 —% 9%
End of period stock plan accounts 1,693,661 1,666,354 1,492,930 2% 13%
End of period banking accounts 292,321   292,680   307,229   —% (5)%
End of period total accounts 5,863,983 5,841,270 5,359,641 —% 9%
 
Customer margin balances (NYSE:B)(2) $ 11.0 $ 11.0 $ 8.1 —% 36%
 

Customer Assets (NYSE:B)

Security holdings $ 345.4 $ 337.6 $ 260.9 2% 32%
Sweep deposits 37.2 37.8 35.0 (2)% 6%
Customer cash held by third parties(3) 5.1 5.0 8.5 2% (40)%
Customer payables (cash) 10.0   10.0   8.2   —% 22%
Brokerage customer assets 397.7   390.4   312.6   2% 27%
Unexercised stock plan holdings (vested) 45.3 45.4 37.6 —% 20%
Savings, checking and other banking assets 4.9   4.9   5.1   —% (4)%
Total customer assets $ 447.9   $ 440.7   $ 355.3   2% 26%
 
Net new brokerage assets(1)(4) $ 0.5 $ 1.5 $ 0.1 (67)% 400%
Net new banking assets(4)   0.1   (0.1 ) (100)% (100)%
Net new customer assets(1) $ 0.5 $ 1.6 $ (69)% N.M.
 
Brokerage related cash $ 52.3 $ 52.8 $ 51.7 (1)% 1%
Other cash and deposits 4.9   4.9   5.1   —% (4)%
Total customer cash and deposits $ 57.2 $ 57.7 $ 56.8 (1)% 1%
 
Managed products $ 6.0 $ 5.8 $ 4.7 3% 28%
Customer net (buy) / sell activity $ (0.9 ) $ (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:

  • July 2018: net new brokerage accounts 855, net new brokerage assets of
    $84 million and DARTs of 3,166. Derivative mix excluding
    post-acquisition activity was 34%.
  • June 2018: net new brokerage accounts 1,050, net new brokerage assets
    of $126 million and DARTs of 3,058. Derivative mix excluding
    post-acquisition activity was 33%.

(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

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 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.

View Comments and Join the Discussion!