ETFCD E*Trade Financial (MM)

E*TRADE Financial Corporation (NASDAQ: ETFCD) today released its Monthly Activity Report for May 2010.

Daily Average Revenue Trades (“DARTs”) for May were 196,074, an eight percent increase from April and a 10 percent decrease from the year ago period. The Company ended the month with nearly 2.7 million brokerage accounts – including gross new brokerage accounts of 30,349 and net new brokerage accounts of 5,055 during the month, totaling 22,682 net new brokerage accounts quarter-to-date. Total accounts ended the month at approximately 4.3 million.

Net new brokerage assets were positive $1.0 billion in the month, totaling $3.9 billion year-to-date. During the month, customer security holdings decreased by six percent, or $7.1 billion, and brokerage-related cash declined by $0.6 billion to $20.9 billion, as customers were net buyers of approximately $1.6 billion in securities in May. Bank-related cash and deposits declined by $0.5 billion in the month.

The Company also updated delinquency statistics in its loan portfolio. For the Company’s entire loan portfolio, total special mention delinquencies (30 to 89 days delinquent) declined by 12 percent from March 31, 2010 to May 31, 2010, while total “at risk” delinquencies (30 to 179 days delinquent) declined by 10 percent during the same period.

Detailed information concerning loan delinquencies is provided below, in the second table of this release.

         

Monthly Activity Data

  May-10 Apr-10 May-09(1) % Chg. M/M % Chg. Y/Y     Trading days 20.0 21.0 20.0 N.M. N.M.   DARTs 196,074 181,556 218,754 8.0 % (10.4)%   Gross new brokerage accounts 30,349 45,744 41,540

(33.7)%

(26.9)% Gross new stock plan accounts 17,472 13,108 16,611 33.3 %

5.2 %

Gross new banking accounts   2,124     2,296     4,865  

(7.5)%

(56.3)%

Total gross new accounts

49,945 61,148 63,016

(18.3)%

(20.7)%   Net new brokerage accounts 5,055 17,627 23,115 N.M. N.M. Net new stock plan accounts 4,707 158 10,383 N.M. N.M. Net new banking accounts   (11,055 )   (11,326 )   (10,307 ) N.M. N.M. Net new accounts (1,293 ) 6,459 23,191 N.M. N.M.   End of period brokerage accounts 2,654,659 2,649,604 2,629,834 0.2 %

0.9 %

End of period stock plan accounts 1,031,068 1,026,361 1,016,765 0.5 %

1.4 %

End of period banking accounts   578,219     589,274     808,815  

(1.9)%

(28.5)% End of period total accounts 4,263,946 4,265,239 4,455,414 0.0 % (4.3)%  

Customer Assets ($B)

Security holdings $ 103.8 $ 110.9 $ 80.0

(6.4)%

29.8 %

Customer payables (cash) 3.8 5.1 4.2

(25.5)%

(9.5)% Customer cash balances held by third parties 3.1 3.1 2.7 0.0 %

14.8 %

Unexercised stock plan customer options (vested)   16.4     19.3     12.3  

(15.0)%

33.3 %

Customer assets in brokerage and stock plan accounts   127.1     138.4     99.2  

(8.2)%

28.1 %

Sweep deposit accounts 14.0 13.3 10.8 5.3 %

29.6 %

Savings and transaction accounts 9.3 9.7 14.3

(4.1)%

(35.0)% CDs   0.9     1.0     1.9  

(10.0)%

(52.6)% Customer assets in banking accounts   24.2     24.0     27.0   0.8 % (10.4)% Total customer assets $ 151.3 $ 162.4 $ 126.2

(6.8)%

19.9 %

  Net new brokerage assets ($B)(2) $ 1.0 $ 0.7 $ 0.8 N.M. N.M. Net new banking assets ($B)(2)   (0.4 )   (0.5 )   (0.5 ) N.M. N.M. Net new customer assets ($B)(2) $ 0.6 $ 0.2 $ 0.3 N.M. N.M.   Brokerage related cash ($B) $ 20.9 $ 21.5 $ 17.7

(2.8)%

18.1 %

Other customer cash and deposits ($B)   10.2     10.7     16.2  

(4.7)%

(37.0)% Total customer cash and deposits ($B) $ 31.1 $ 32.2 $ 33.9

(3.4)%

(8.3)%  

(1) The period presented has been updated to exclude international local activity.(2) 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.

           

Loan Delinquency Data

  May-10 Apr-10 Mar-10

% Chg.May 10 -Apr 10

% Chg.Apr 10 -Mar 10

% Chg.May 10 -Mar 10

One- to Four-Family ($MM)

  Current $ 7,787 $ 7,950 $ 8,038 (2)% (1)% (3)% 30-89 days delinquent 443 456 527 (3)% (13)% (16)% 90-179 days delinquent   313   316   339 (1)% (7)% (8)% Total 30-179 days delinquent 756 772 866 (2)% (11)% (13)% 180+ days delinquent(3)   878   880   881 (0)% (0)% (0)% Total delinquent loans   1,634   1,652   1,747 (1)% (5)% (6)% Gross loans receivable(4) $ 9,421 $ 9,602 $ 9,785 (2)% (2)% (4)%  

Home Equity ($MM)

  Current $ 6,876 $ 6,989 $ 7,086 (2)% (1)% (3)% 30-89 days delinquent 207 197 214

5 %

(8)% (3)% 90-179 days delinquent   155   163   170 (5)% (4)% (9)% Total 30-179 days delinquent 362 360 384

1 %

(6)% (6)% 180+ days delinquent(3)   61   63   56 (3)%

13 %

9 %

Total delinquent loans   423   423   440

0 %

(4)% (4)% Gross loans receivable(4) $ 7,299 $ 7,412 $ 7,526 (2)% (2)% (3)%  

Consumer and Other ($MM)

  Current $ 1,688 $ 1,720 $ 1,750 (2)% (2)% (4)% 30-89 days delinquent 26 27 28 (4)% (4)% (7)% 90-179 days delinquent   6   6   5

0 %

20 %

20 %

Total 30-179 days delinquent 32 33 33 (3)%

0 %

(3)% 180+ days delinquent(3)   1   1   1

0 %

0 %

0 %

Total delinquent loans   33   34   34 (3)%

0 %

(3)% Gross loans receivable(4) $ 1,721 $ 1,754 $ 1,784 (2)% (2)% (4)%  

Total Loans Receivable ($MM)

  Current $ 16,351 $ 16,659 $ 16,874 (2)% (1)% (3)% 30-89 days delinquent 676 680 769 (1)% (12)% (12)% 90-179 days delinquent   474   485   514 (2)% (6)% (8)% Total 30-179 days delinquent 1,150 1,165 1,283 (1)% (9)% (10)% 180+ days delinquent(3)   940   944   938 (0)%

1 %

0 %

Total delinquent loans   2,090   2,109   2,221 (1)% (5)% (6)% Total gross loans receivable(4) $ 18,441 $ 18,768 $ 19,095 (2)% (2)% (3)%

 

(3) Loans that are delinquent for 180+ days have been written down to estimated current property value.(4) Includes unpaid principal balances and premiums (discounts).

Historical metrics and financials through May 2010 can be found on the E*TRADE Financial investor relations site 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. ETFC-G

Important Notices

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