Net Interest Income Growth Drives E-Trade’s Profitable Quarter

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ETFC: E*TRADE Financial logo
ETFC
E*TRADE Financial

E*Trade Financial (NASDAQ:ETFC) announced its Q2 2016 earnings on Thursday, July 21st, reporting a 10% year-on-year (y-o-y) rise in net revenues, to $474 million. This rise in revenue was primarily attributable to a 17 basis point increase in average yield on interest earning assets, which resulted in 13% y-o-y growth in net interest income. However, declining trading commissions weighed on revenues, offsetting some of the positive impact from higher yields. In terms of the bottom line, decreasing operating expenses  led to a 41% rise in operating income for the company. Consequently, E*Trade’s EBITDA margin expanded by an impressive 9 percentage points in Q2.

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