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E*TRADE Financial Corporation Announces Second Quarter 2012 Results

E*TRADE Financial Corporation (NASDAQ: ETFC):

Second Quarter Results

  • Net income of $40 million, or $0.14 per share on total net revenue of $452 million
  • Other expenses included a pre-tax benefit of $7 million, or $0.01 per share (1) , primarily related to the Company’s reserve established in 2011 to purchase auction rate securities (ARS)
  • Provision for loan losses of $67 million
  • Daily Average Revenue Trades (DARTs) of 139,000
  • Net new brokerage accounts of 46,000, representing year-to-date net new accounts of 92,000, for 6.6% annualized growth
  • Net new brokerage assets of $2.2 billion, representing year-to-date net new assets of $6.2 billion, for 8.5% annualized growth (2)

E*TRADE Financial Corporation (NASDAQ: ETFC) today announced results for its second quarter ended June 30, 2012, reporting net income of $40 million, or $0.14 per share. This compares with net income of $63 million, or $0.22 per share in the prior quarter, and net income of $47 million, or $0.16 per share in the second quarter of 2011. The Company reported total net revenue of $452 million for the second quarter of 2012, compared with $489 million in the prior quarter and $518 million in the second quarter of 2011.

“The second quarter was another significant step forward for E*TRADE as we continued our momentum in growing the brokerage franchise and in reducing our legacy credit exposure” said Steven Freiberg, Chief Executive Officer. “Our growth in accounts and assets is on track to exceed last year’s results, and our credit costs are at a five year low. While we are encouraged by this performance, we continue to face a challenging macro-economic environment with low levels of retail investor engagement. Accordingly, we are increasing our focus on strategic cost management, deleveraging, and risk reduction to provide a solid basis for earnings and capital efficiency.”

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