How Have E-Trade’s Non-Performing And Delinquent Loans Trended Over The Past Few Years?

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E*TRADE Financial

E-Trade managed to reduce its non-performing loans – the brokerage classifies loans as non-performing when they are no longer accruing interest, which includes loans that are due for 90 days or more – at an annual rate of 22% between 2012 and 2015.  Similarly, the company’s non-performing assets also fell by 22% year-on-year during the period. This decrease was seen primarily due to the implementation of strategies such as voluntary line closures, automatically freezing lines on all delinquent accounts, and freezing lines on loans with materially reduced home equity.  Moreover, the lower levels of delinquent and non-performing loans indicate at the improving economic and financial conditions in the U.S. The table below shows a breakdown of the brokerage’s delinquent loans.

npa

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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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