TD Ameritrade second-quarter profit rises 5 percent on asset gathering
(Reuters) - TD Ameritrade Holding Corp (AMTD.N), the biggest discount brokerage by client trading volume, said Tuesday that continued double-digit growth in client assets helped its fiscal second-quarter profit rise 5.1 percent from a year ago.
The Omaha, Nebraska-based company reported net income of $144 million, or 26 cents a share, in the quarter that ended March 31, up from $137 million, or 25 cents a share, in the year-earlier quarter.
The results, which fell 2.7 percent from its fiscal first quarter, were in line with the consensus forecast of analysts surveyed by Thomson Reuters I/B/E/S.
Like its rival Charles Schwab Corp (SCHW.N) that on Monday reported a 6 percent gain in quarterly earnings, TD Ameritrade collected assets at a torrid pace from clients that generated strong fee revenue and helped offset a continuing decline in trading revenue from cautious clients.
"Halfway through fiscal 2013, following the two best quarters for asset gathering in our history, we have gathered a record $29 billion in net new client assets," Chief Executive Fred Tomczyk said in a statement. "A large number of investors remain cautious in this environment, and yet we continue to execute well against our strategy and on items we can control."
Retail brokerage firms are increasingly focused on selling fee-based accounts and products to customers that generate revenue irrespective of whether they trade.
TD Ameritrade reported net revenue of $679 million in the quarter, 55 percent of which came from asset-based fees. Revenue inched up from $673 million in the year-earlier period, but was below analysts' consensus forecast of $677.1 million, according to Thomson Reuters I/B/E/S.
(Reporting By Jed Horowitz; Editing by Maureen Bavdek)
- Atheists face death in 13 countries, global discrimination: study
- South Africa admits mistake over 'schizophrenic' Mandela signer |
- Missouri executes man for killing good Samaritan motorist in 1994
- Thai military chief rebuffs meeting request in blow to protesters |
- Apple scores legal victory over Samsung in South Korea