E*TRADE Financial Corporation Reports Monthly Activity for October 2011

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Wed Nov 16, 2011 8:05am EST

E*TRADE Financial Corporation Reports Monthly Activity for October 2011

E*TRADE Financial Corporation (NASDAQ: ETFC) today released its Monthly Activity Report for October 2011.

Daily Average Revenue Trades (“DARTs”) for October were 157,713, a three percent increase from September and a nine percent increase from the year-ago period. The company added 22,723 gross new brokerage accounts in October, ending the month with approximately 2.8 million brokerage accounts – a decrease of 836 from September. Total accounts ended the month at approximately 4.3 million.

Net new brokerage assets were positive $0.6 billion in the month. During the month, customer security holdings increased by 10 percent, or $11.4 billion, and brokerage-related cash increased by $1.0 billion to $27.1 billion, as customers were net sellers of approximately $0.9 billion in securities. Bank-related cash and deposits ended the month unchanged, at $7.8 billion.

Monthly Activity Data

  Oct-11   Sep-11   Oct-10   % Chg. M/M   % Chg. Y/Y
 
 
Trading days 21.0 21.0 21.0 N.M. N.M.
 
DARTs 157,713 152,844 145,311 3.2% 8.5%
 
Gross new brokerage accounts 22,723 25,300 26,901 (10.2)% (15.5)%
Gross new stock plan accounts 12,147 12,586 14,248 (3.5)% (14.7)%
Gross new banking accounts   1,697     1,618     1,588   4.9% 6.9%
Total gross new accounts 36,567 39,504 42,737 (7.4)% (14.4)%
 
Net new brokerage accounts (836 ) 1,979 4,167 N.M. N.M.
Net new stock plan accounts 1,597 (3,853 ) 321 N.M. N.M.
Net new banking accounts   (3,218 )   (2,846 )   (7,293 ) N.M. N.M.
Net new accounts (2,457 ) (4,720 ) (2,805 ) N.M. N.M.
 
End of period brokerage accounts 2,771,980 2,772,816 2,660,869 0.0% 4.2%
End of period stock plan accounts 1,063,685 1,062,088 1,033,771 0.2% 2.9%
End of period banking accounts   469,565     472,783     529,313   (0.7)% (11.3)%
End of period total accounts 4,305,230 4,307,687 4,223,953 (0.1)% 1.9%
 

Customer Assets ($B)

Security holdings $ 121.3 $ 109.9 $ 113.6 10.4% 6.8%
Customer payables (cash) 5.7 5.4 4.9 5.6% 16.3%
Customer cash balances held by third parties 3.4 3.3 3.3 3.0% 3.0%
Unexercised stock plan customer options (vested)   19.8     16.1     19.7   23.0% 0.5%
Customer assets in brokerage and stock plan accounts   150.2     134.7     141.5   11.5% 6.1%
Sweep deposits 18.0 17.4 15.3 3.4% 17.6%
Savings, transaction and other   7.8     7.8     9.1   0.0% (14.3)%
Customer assets in banking accounts   25.8     25.2     24.4   2.4% 5.7%
Total customer assets $ 176.0 $ 159.9 $ 165.9 10.1% 6.1%
 
Net new brokerage assets ($B)(1) $ 0.6 $ 0.6 $ 0.9 N.M. N.M.
Net new banking assets ($B)(1)   -     -     (0.1 ) N.M. N.M.
Net new customer assets ($B)(1) $ 0.6 $ 0.6 $ 0.8 N.M. N.M.
 
Brokerage related cash ($B) $ 27.1 $ 26.1 $ 23.5 3.8% 15.3%
Other customer cash and deposits ($B)   7.8     7.8     9.1   0.0% (14.3)%
Total customer cash and deposits ($B) $ 34.9 $ 33.9 $ 32.6 2.9% 7.1%
 

(1) 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.

Historical metrics and financials through October 2011 can be found on E*TRADE Financial’s investor relations website 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. More information is available at www.etrade.com.

Important Notices

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

© 2011 E*TRADE Financial Corporation. All rights reserved.

E*TRADE Financial Media Relations Contact
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

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