E-Trade’s Key Monthly Brokerage Metrics Improve In May
E-Trade’s key monthly metrics saw improvement in May. Net new brokerage accounts were up 18% year on year, despite the closure of nearly 5,000 accounts related to the shutdown of E-Trade’s global trading platform and the escheatment of unclaimed property. We currently forecast the total number of brokerage accounts at E*Trade to increase to 3.3 million by the end of 2016. Net new customer assets, which are comprised of net new brokerage and banking assets, grew 10% y-o-y, resulting in a slight improvement in total customer cash and deposits. However, the company’s Daily Average Revenue Trades (DARTs) were down slightly in the period, after improving in the month of April. This will likely have a negative impact on the company’s trading revenues. Going forward, we expect the company to see growth in total customer cash and deposits, underlined by the introduction of E-Trade’s robo-advisory service and a likely hike in interest rates in the second half of the year.
Have more questions about E-Trade Financial? See the links below:
- E-Trade’s Key Monthly Brokerage Metrics Improve In April
- What’s E-Trade’s Revenue And EBITDA Breakdown In Terms Of Different Operating Segments
- How E*Trade’s Robo-Advisory Service Will Power Growth In The Future
- 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?
- Coronavirus Recovery Watch: Capital Market Portfolio: 15% 5D Return vs. (-25%) YTD Return – [BlackRock, E*TRADE, Schwab & TD Ameritrade]
- Why Isn’t Charles Schwab’s Stock Benefiting From The Spike In Trading Volumes?
- E*TRADE: Will Lower Trading Commissions Cause Revenues To Be Short Of Consensus Estimates For FY 2019
- Is E*TRADE Stock Fairly Priced?
- Net Interest Revenue Will Form 40%, 60% or 80% Of E-Trade’s Stock In 2020?
- Changing Business Environment Likely To Be A Boon For Schwab and Ameritrade Despite Zero Commissions
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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