E*TRADE Financial Corporation Reports Monthly Activity for January 2019

E*TRADE Financial Corporation (NASDAQ: ETFC) today released its Monthly Activity Report for January 2019.

Daily Average Revenue Trades (DARTs) for January were 282,499, a nine percent decrease from December and a 10 percent decrease from the year-ago period. Derivatives represented 33 percent of DARTs during the month. The Company added 48,211 gross new brokerage accounts in January and ended the month with approximately 4.9 million brokerage accountsan increase of 18,288 from December.

Net new brokerage assets were $0.7 billion in the month. During the month, customer security holdings increased by $30.5 billion, and brokerage-related cash decreased by $0.6 billion to $53.6 billion. Customer margin balances increased $0.2 billion, ending the month at $9.8 billion. Customers were net buyers of approximately $1.3 billion in securities during the month.

Monthly Activity Data

    Jan-19   Dec-18   Jan-18   % Chg. M/M   % Chg. Y/Y
Trading days 21.0 18.5 21.0 N.M. N.M.
 
DARTs (1) 282,499 310,889 315,572 (9 )% (10 )%
Derivative DARTs 92,511 95,190 95,496 (3 )% (3 )%
Derivative DARTs % 33 % 31 % 30 % 2 % 3 %
 
Gross new brokerage accounts 48,211 44,932 64,581 7 % (25 )%
Gross new stock plan accounts 35,633 26,164 26,620 36 % 34 %
Gross new banking accounts 6,330   3,502   466   81 % N.M.
Total gross new accounts 90,174 74,598 91,667 21 % (2 )%
 
Net new brokerage accounts(1) 18,288 1,077 25,529 N.M. (28 )%
Net new stock plan accounts 19,988 10,631 13,175 88 % 52 %
Net new banking accounts 4,207   1,709   (1,602 ) 146 % N.M.
Net new accounts 42,483 13,417 37,102 217 % 15 %
 
End of period brokerage accounts(1) 4,915,052 4,896,764 3,660,438 % 34 %
End of period stock plan accounts 1,783,817 1,763,829 1,505,551 1 % 18 %
End of period banking accounts 302,384   298,177   297,247   1 % 2 %
End of period total accounts 7,001,253 6,958,770 5,463,236 1 % 28 %
 
Customer margin balances ($B) $ 9.8 $ 9.6 $ 9.4 2 % 4 %
 

Customer Assets ($B)

Security holdings $ 348.0 $ 317.5 $ 304.7 10 % 14 %
Sweep deposits 37.7 39.3 38.4 (4 )% (2 )%
Customer cash held by third parties(2) 5.7 4.8 4.8 19 % 19 %
Customer payables (cash) 10.2   10.1   9.8   1 % 4 %
Brokerage customer assets 401.6   371.7   357.7   8 % 12 %
Unexercised stock plan holdings (vested) 45.0 36.4 42.3 24 % 6 %
Savings, checking and other banking assets 6.4   6.0   4.9   7 % 31 %
Total customer assets $ 453.0   $ 414.1   $ 404.9   9 % 12 %
 
Net new brokerage assets(1)(3) $ 0.7 $ 1.9 $ 1.5 (63 )% (53 )%
Net new banking assets(3) 0.4   0.3   (0.2 ) 33 % N.M.
Net new customer assets(1) $ 1.1 $ 2.2 $ 1.3 (50 )% (15 )%
 
Brokerage related cash $ 53.6 $ 54.2 $ 53.0 (1 )% 1 %
Other cash and deposits 6.4   6.0   4.9   7 % 31 %
Total customer cash and deposits $ 60.0 $ 60.2 $ 57.9 % 4 %
 
Managed products $ 6.0 $ 5.7 $ 5.7 5 % 5 %
Customer net (buy) / sell activity(1) $ (1.3 ) $ 1.1 $ (1.5 ) N.M. N.M.

(1) Includes the impact of the April 9, 2018, Trust Company of America (TCA) acquisition, including post-acquisition activity, as follows:

  • January 2019: net new brokerage accounts of 353, end of period brokerage customer assets of $18.9 billion, net new brokerage assets of negative $24 million, DARTs of 2,995, and customer net buy activity of $0.3 billion.
  • December 2018: net new brokerage accounts of 144, end of period brokerage customer assets of $18.1 billion, net new brokerage assets of $21 million, DARTs of 3,519, and customer net sell activity of $0.4 billion.

(2) Customer cash held by third parties is held outside E*TRADE and includes money market funds and sweep deposit accounts at unaffiliated financial institutions. Customer cash held by third parties is not reflected in the Company’s consolidated balance sheet and is not immediately available for liquidity purposes.

(3) Net new brokerage assets are total inflows to all new and existing brokerage customer accounts less total outflows from all closed and existing brokerage customer accounts, excluding the effects of market movements in the value of brokerage customer assets. Net new banking assets are total inflows to all new and existing banking customer accounts less total outflows from all closed and existing banking 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 can be found on E*TRADE Financial’s corporate website at https://about.etrade.com.

About E*TRADE Financial

E*TRADE Financial and its subsidiaries provide financial services including brokerage and banking products and services to retail customers. Securities products and services are offered by E*TRADE Securities LLC (Member FINRA/SIPC). Commodity futures and options on futures products and services are offered by E*TRADE Futures LLC (Member NFA). Managed Account Solutions are offered through E*TRADE Capital Management, LLC, a Registered Investment Adviser. Bank products and services are offered by E*TRADE Bank, and RIA custody solutions are offered by E*TRADE Savings Bank, both of which are federal savings banks (Members FDIC). E*TRADE Securities LLC, E*TRADE Capital Management, LLC, E*TRADE Futures LLC, E*TRADE Bank and E*TRADE Savings Bank are separate but affiliated companies. More information is available at www.etrade.com.

Important Notices

E*TRADE, E*TRADE Financial, E*TRADE Bank, E*TRADE Savings Bank, the E*TRADE logo and Trust Company of America are trademarks or registered trademarks of E*TRADE Financial Corporation. ETFC-G

2019 E*TRADE Financial Corporation. All rights reserved.

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