E*Trade Financial Corp. (ETFC) said its average trading volume
rose in May on a month-to-month basis, but fell 10% from May 2009,
trailing rivals that saw growth in both periods during a month that
included the "flash crash."
Meanwhile, the company said the number of mortgages from 30 to
179 days delinquent at its banking operations declined 10% from
March 31 to May 31, while those from 30 to 89 days behind declined
12% during the same period. Home loans have been a struggle for
E*Trade the past several years.
The online broker said its May volume rose 8% from April but
declined 10% from a year earlier. Earlier this week, both Charles
Schwab Corp. (SCHW) and TD Ameritrade Holding Corp. (AMTD) reported
double-digit gains in both periods. Markets have been volatile of
late due to mounting concern over economies in Europe. Trading
volume had previously been at diminished levels after the turmoil
in the wake of the financial crisis.
E*Trade, whose trading activity has generally been trailing
others in the sector, added 30,349 U.S. brokerage accounts in May,
bringing its customer base to nearly 2.7 million. Prior-year growth
was 41,540.
Total customer assets were up 20% from a year ago at $151.3
billion on stock gains of the past year. They dropped 6.8% during
May, also mirroring the equities market. The company reported
client inflows of $600 million, up from $300 million a year ago and
$200 million in April.
Shares closed on Tuesday at $14.02. The stock is down 20% so far
this year.
-By Nathan Becker, Dow Jones Newswires; 212-416-2855;
nathan.becker@dowjones.com;