E*TRADE (ETFC) reported second quarter earnings that easily beat analysts estimates. The online broker reported earnings of 48 cents per share in the quarter. Expectations from analysts were for only 38 cents per share. Revenue came in at $474 million versus expectations of $471 million. Revenue was up ten percent from the same period a year ago.
E*TRADE reported Daily Average Revenue Trades (DARTs) of 152,000 in the quarter. That was up two percent from a year ago, but down eight percent from the first quarter. Allowance for loan losses was $293 million, down from $402 million in the previous quarter.
Net income increased 13 percent from a year ago, primarily due to reduced expenses. Total non-interest expenses in the quarter were $295 million. That was down $14 million from a year ago, and down $17 million from the first quarter. This was largely due to reduced advertising and market development spending.
One negative from the report was total customer assets actually fell five percent from a year ago.
E*TRADE ended the second quarter with 3.3 million brokerage accounts. There were 23,000 new brokerage accounts opened in the second quarter.
E*TRADE CEO Paul Idzik said, “The quarter closed in a frenzy of market activity that impelled a single-day record of net buying as customers seized opportunities following sharp market declines.” Idzik was referring to the heavy volume after the Brexit vote in late June.
Shares of ETFC gained 2.34 percent on the market following these results. A one year chart of ETFC shares is shown below.
Click here for the full press release from E*TRADE.