E*TRADE Financial Corporation Reports Monthly Activity For January 2012

E*TRADE Financial Corporation (NASDAQ: ETFC) today released its Monthly Activity Report for January 2012.

Daily Average Revenue Trades (“DARTs”) for January were 145,390, a 20 percent increase from December and a 20 percent decrease from the year-ago period. The company added 30,298 gross new brokerage accounts in January, ending the month with approximately 2.8 million brokerage accounts – an increase of 10,041 from December. Total accounts ended the month at approximately 4.3 million.

Net new brokerage assets were positive $0.7 billion in the month. During the month, customer security holdings increased by seven percent, or $8.4 billion, and brokerage-related cash increased by $1.3 billion to $29.0 billion, as customers were net sellers of approximately $0.9 billion in securities. Bank-related cash and deposits ended the month unchanged, at $7.8 billion.

Monthly Activity Data
                     
Jan-12 Dec-11 Jan-11 % Chg. M/M % Chg. Y/Y
 
 
Trading days 20.0 21.0 20.0 N.M. N.M.
 
DARTs 145,390 121,135 180,967 20.0 % (19.7)%
 
Gross new brokerage accounts 30,298 28,689 37,005 5.6 % (18.1)%
Gross new stock plan accounts 29,569 17,272 29,267 71.2 % 1.0 %
Gross new banking accounts   1,525   1,409   1,942 8.2 % (21.5)%
Total gross new accounts 61,392 47,370 68,214 29.6 % (10.0)%
 
Net new brokerage accounts 10,041 10,825 12,504 N.M. N.M.
Net new stock plan accounts 18,234 7,510 16,201 N.M. N.M.
Net new banking accounts   (2,478)   (2,456)   (6,275) N.M. N.M.
Net new accounts 25,797 15,879 22,430 N.M. N.M.
 
End of period brokerage accounts 2,793,053 2,783,012 2,696,815 0.4 % 3.6 %
End of period stock plan accounts 1,088,648 1,070,414 1,064,725 1.7 % 2.2 %
End of period banking accounts   461,090   463,568   508,722 (0.5)% (9.4)%
End of period total accounts 4,342,791 4,316,994 4,270,262 0.6 % 1.7 %
 

Customer Assets ($B)
Security holdings $ 126.5 $ 118.1 $ 124.3 7.1 % 1.8 %
Customer payables (cash) 6.1 5.6 5.3 8.9 % 15.1 %
Customer cash balances held by third parties 3.6 3.5 3.4 2.9 % 5.9 %
Unexercised stock plan customer options (vested)   22.1   18.8   23.0 17.6 % (3.9)%
Customer assets in brokerage and stock plan accounts   158.3   146.0   156.0 8.4 % 1.5 %
Sweep deposits 19.3 18.6 16.5 3.8 % 17.0 %
Savings, transaction and other   7.8   7.8   8.8 0.0 % (11.4)%
Customer assets in banking accounts   27.1   26.4   25.3 2.7 % 7.1 %
Total customer assets $ 185.4 $ 172.4 $ 181.3 7.5 % 2.3 %
 
Net new brokerage assets ($B)(1) $ 0.7 $ 0.5 $ 1.2 N.M. N.M.
Net new banking assets ($B)(1)   (0.1)   0.1   (0.2) N.M. N.M.
Net new customer assets ($B)(1) $ 0.6 $ 0.6 $ 1.0 N.M. N.M.
 
Brokerage related cash ($B) $ 29.0 $ 27.7 $ 25.2 4.7 % 15.1 %
Other customer cash and deposits ($B)   7.8   7.8   8.8 0.0 % (11.4)%
Total customer cash and deposits ($B) $ 36.8 $ 35.5 $ 34.0 3.7 % 8.2 %
 
Customer net (purchase) / sell activity ($B) $ 0.9 $ 1.6 $ (0.7) N.M. N.M.
 

(1) Net new customer assets are total inflows to all new and existing customer accounts less total outflows from all closed and existing customer accounts. The net new banking assets and net new brokerage assets metrics treat asset flows between E*TRADE entities in the same manner as unrelated third party accounts.

Historical metrics and financials through January 2012 can be found on E*TRADE Financial’s investor relations website at https://investor.etrade.com.

About E*TRADE Financial

The E*TRADE Financial family of companies provides financial services including online brokerage and related banking products and services to retail investors. Specific business segments include Trading and Investing and Balance Sheet Management. Securities products and services are offered by E*TRADE Securities LLC (Member FINRA/SIPC). Bank products and services are offered by E*TRADE Bank, a Federal savings bank, Member FDIC, or its subsidiaries. More information is available at www.etrade.com.

Important Notices

E*TRADE Financial, E*TRADE and the E*TRADE logo are trademarks or registered trademarks of E*TRADE Financial Corporation. ETFC-G

© 2012 E*TRADE Financial Corporation. All rights reserved.

Copyright Business Wire 2010

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