E*TRADE (ETFC) reported second quarter earnings that edged past analysts estimates. The online broker reported earnings of 24 cents per share, which was one penny better than the average estimate by analysts. That number is significantly better than E*TRADE’s 19 cent loss a year ago, but it isn’t as good as the company’s 33 cents per share profit in the first quarter of 2014. Total net revenue actually edged lower to $438 million from $440 million in the same quarter a year ago. The revenue number was better than analysts estimates of $428 million.
Net new brokerage assets were $1.0 billion, down from $1.7 billion in the prior quarter. E*TRADE now has 4.7 million customers accounts, including 3.1 million brokerage accounts, which is up 4.7 percent from a year ago. Net new brokerage accounts increased to 33,005 from 29,506 in the previous quarter. Net operating interest income increased 11.1 percent year over year to $270 million thanks to higher interest income and lower interest expenses. The net interest spread jumped to 2.55 percent from 2.35 percent in the first quarter of 2014. Provision for loan losses decreased 74 percent from last year to a total of $12.0 million. The company’s annualized attrition rate came in at 8.6 percent.
The all-important Daily Average Revenue Trades (DARTs) number came in at 155,000. That number was four percent higher than the same period a year ago, but down 22 percent from the first quarter.
CEO Paul Idzik said, “We had a successful second quarter, characterized by continued growth in the brokerage business, even as trading activity moderated industrywide.”
Shares of ETFC fell 2.54 percent following this report. Click here for the full earnings release from E*TRADE.