Higher Asset Based Revenues Lead To A Profitable June Quarter For Ameritrade

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AMTD IDEA Group

TD Ameritrade (NASDAQ:AMTD) announced its June quarter earnings on Tuesday, July 19, reporting a 6% year on year (y-o-y) increase in net revenues to $838 million. Though each of the revenue streams saw notable growth, the greatest contribution came from investment product fees, which were up 13% y-o-y. Furthermore, transaction-based revenues grew 6% y-o-y, mainly due to the market volatility caused by the U.K.’s Brexit vote. However, the increase in net interest income was lukewarm, despite a significant 11% y-o-y rise in interest earning assets, due to a 10 basis point decline in average yield on these assets. In terms of the bottom line, Ameritrade’s net income grew 22% y-o-y to $240 million, owing to a favorable $33 million tax liability re-measurement due to the realization of deferred taxes.

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