Jan 22 TD Ameritrade Holding Corp said
quarterly net income fell 3.4 percent from a year earlier but
beat analysts' expectations on record new assets from clients.
TD Amertrade, the biggest online broker by customer trading
volume, reported profit of $147 million, or 27 cents a share,
for its fiscal first quarter ended Dec. 31, 2012. The consensus
estimate of 21 analysts compiled by Thomson Reuters I/B/E/S was
24 cents a share.
TD Ameritrade, which last month declared a special dividend
of 50 cents a share, continued to struggle against low interest
rates that have hurt its ability to book gains on clients'
Like other discount brokerages, it has been forced to waive
money-market fees worth hundreds of millions of dollars annually
to ensure that clients do not realize negative returns.
TD Ameritrade remained more reliant on commissions and other
investments from active traders than rivals such as Charles
Schwab Corp and E*Trade Financial Corp.
TD Ameritrade said the quarterly client activity rate, a
measure of how many active accounts were trading, fell to 5.8
percent from 6.5 percent a year earlier but was up slightly from
the fiscal fourth quarter.
Despite sluggish trading volume industrywide, the company in
October said it expects fiscal 2013 earnings to generally beat
The brokerage has expanded into options trading and
fee-based accounts to supplement its market-sensitive commission
businesses. It gathered a record $15.6 billion in new client
assets in the last three months of the year, up from about $10
billion in the year-earlier quarter.
TD Ameritrade ended 2012 with $472.3 billion in client
assets, up 7 percent from a year earlier.
Rival Charles Schwab Corp earlier this month also
reported record asset gathering at the end of 2012.
Shares of TD Ameritrade are up 13.3 percent in the past 52
weeks, including reinvested dividends, and have ranged between
$15.09 and $20.59. They closed Friday on the New York Stock
Exchange at $18.45, up 1.4 percent. U.S. markets were closed the
Martin Luther King Jr. U.S. holiday on Monday.