What Drove E-Trade’s Revenue And EBITDA Declines In 2015?

E-Trade witnessed a significant decline in its revenues in 2015, primarily due to losses on loans and securities. Despite the drop in revenues from all business lines, the company’s cost base remained largely flat (only declining by 1%) as the fall in provision for loan losses was more than offset by growth in compensation and benefits expenses, and occupancy, equipment and communication expenses. As a result, the brokerage’s EBITDA dropped by 51% on a year on year basis and the EBITDA margin declined by 15 percentage points.

Have more questions about E-Trade Financial? See the links below:

• What’s E-Trade’s Revenue And EBITDA Breakdown In Terms Of Different Operating Segments?
• How Has E-Trade’s Revenue Composition Changed Over The Past 5 Years?
• By How Much Has E-Trade’s Revenue & EBITDA Grown In The Last Five Years?
• What Is E-Trade’s Fundamental Value Based On Expected 2016 Results?

Notes:

1) The purpose of these analyses is to help readers focus on a few important things. We hope such lean communication sparks thinking, and encourages readers to comment and ask questions on the comment section, or email content@trefis.com

2) Figures mentioned are approximate values to help our readers remember the key concepts more intuitively. For precise figures, please refer to our complete analysis for E-Trade

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