E*Trade says to triple non-U.S. revenue by 2010

By Ovais Subhani

SINGAPORE (Reuters) - U.S. online brokerage E*Trade Financial Corp (ETFC.O: Quote, Profile, Research, Stock Buzz) aims to triple its share of revenue from international operations to 30 percent by 2010, expanding partly through acquisitions in China and India.

Mathias Helleu, who heads E*Trade's international operations, said the company was seeking acquisitions in China and wanted to increase its 48-percent stake in Indian broker IL&FS Investsmart (ILFI.BO: Quote, Profile, Research, Stock Buzz), acquired last year.

"We do believe that India and China really are the two biggest pillars of our international expansion," he told Reuters in an interview in Singapore on Wednesday.

"The U.S. market is pretty mature now in terms of new accounts. So if you want to continue to grow you will have to go outside of the U.S. in markets where the growth is still strong."

Helleu said business in Japan, Australia and South Korea would continue to be managed by affiliates. Similar arrangements across the world provide E*Trade customers access to a total of 42 markets.

He said consolidation in the U.S. could also provide "tremendous opportunity" and value if there is alignment in strategy and product.

E*Trade and local peer TD Ameritrade Holding Corp (AMTD.O: Quote, Profile, Research, Stock Buzz) have been in serious merger discussions for weeks but not yet close to a deal that could shake up the online financial services industry by creating a dominant player, the Wall Street Journal's Web site said earlier on Wednesday.

A merger between the two could eclipse Charles Schwab Corp (SCHW.O: Quote, Profile, Research, Stock Buzz), currently the largest online brokerage, but Helleu said the company does not comment on specific rumors.