E*TRADE Financial Corporation (NASDAQ:ETFC) stock rose over 1.3% on April 20th, 2018 (as of 11:50 AM GMT-4; Source: Google finance).
Their derivative DARTs reached a record at 98,000 during the quarter which is a rise of 41% sequentially. Their derivative mix came in at 32% as the raging equity volumes continue to dilute the effect of the incredible growth in derivatives. Customer margin balances reached record levels during the quarter ending the period at $10.5 billion boosted by a better yield on the back of the Fed’s December hike. The Net new brokerage accounts reached 60,000 which equates to a 6.6% annualized growth rate. This rise in account growth portends good things as a leading indicator of net new asset growth as customers would start modestly and commit more assets over time as they experience better service and become aware of the wide range of portfolio.
The Net new brokerage assets reached $5.3 million which is a 6.3% annualized growth rate. Moreover, with $6.9 billion in net securities purchases during the quarter, the customers are engaging with the markets in a meaningful way boosting investor sentiment. Managed assets rose by over $100 million during the quarter to $5.6 billion reflecting $220 million in net inflows partly offset by the impact of lower market levels.
The group reported net income of $247 million or $0.88 per share during the quarter. Net revenues reached $708 million which rose $ 71 million from the prior quarter and showed a record level for the company. This rise was driven by solid customer trading volumes as well as the ongoing rise in average interest earning assets and the expansion in net interest margin. Net interest income rose $26 million to $445 million during the quarter as average interest earning assets grew by $2.5 billion and net interest margin expanded by five basis points to 297 basis points. Better interest rates , higher average margin balance as well as better investment yields in the securities portfolio were the major drivers of the sequential improvement in NIM.