This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
$1 buys you full access to ALL of TheStreet's Subscription Services! Learn More

E*TRADE Financial Corporation Announces Fourth Quarter And Full Year 2012 Results

Stocks in this article: ETFC

The Company ended the quarter with $201 billion in total customer assets, compared with $204 billion at the end of the third quarter and $172 billion at the end of 2011.

During the quarter, customers added $2.3 billion in net new brokerage assets, totaling $10.4 billion for the full year. Brokerage related cash increased by $1.3 billion to $33.9 billion during the period, while customers were net buyers of approximately $0.5 billion of securities. Margin receivables averaged $5.8 billion in the quarter, up four percent sequentially and up 18 percent year over year.

Net operating interest income for the fourth quarter was $260 million, down from $261 million in the prior quarter and $289 million a year ago. Fourth quarter results reflected a net interest spread of 2.38 percent on average interest-earning assets of $42.9 billion, compared with a net interest spread of 2.28 percent on average interest-earning assets of $44.9 billion in the prior quarter.

Commissions, fees and service charges, principal transactions, and other revenue in the fourth quarter were $151 million, compared with $153 million in the prior quarter and $156 million in the fourth quarter of 2011. Average commission per trade for the quarter was $11.10, compared to $11.24 in the prior quarter, and $10.80 in the fourth quarter of 2011.

Total operating expenses for the quarter decreased $4 million sequentially to $285 million. For the year, operating expenses were $1.2 billion.

In December, the Company completed a refinance of its 12.50% Springing Lien Notes due 2017 and its 7.875% Senior Notes due 2015, using the net proceeds from a $1.305 billion issuance of new Senior Notes. The new Senior Notes were issued in two tranches - $505 million of 6.0% notes due 2017, and $800 million of 6.375% notes due 2019. The transaction, which resulted in a pre-tax loss of $257 million on early extinguishment of debt, lowered the Company’s annual debt servicing costs by approximately $70 million on a pre-tax basis.

3 of 13

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,885.68 +57.93 0.32%
S&P 500 2,072.82 -0.01 -0.00%
NASDAQ 4,807.4020 +20.0850 0.42%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs