Ameritrade Sees Positive Start To 2017 With Sustained Growth Momentum Across Key Metrics

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AMTD IDEA Group

TD Ameritrade (NASDAQ:AMTD) started the year on a positive note, with significant growth across its key monthly metrics in January. Interest earning assets, which generate about 45% of the company’s revenues, saw 14% year over year growth. The interest rate hike in December 2016, as well as expectations of additional hikes in the year ahead, have largely driven the growth in interest earning assets.

The brokerage’s trading volumes remained low in comparison to January 2016, though this was primarily because of a tough year-on-year comparison due to the volatility seen in the global economy at the beginning of 2016, driven by uncertainty around oil prices, a slowdown in China and dim GDP growth in the U.S. at the time. However, on a sequential basis, trading volumes were up by 8% from the previous month. While Ameritrade’s volumes may suffer somewhat in the near term due to intense competition, the acquisition of Scottrade should ultimately boost its trading volumes and help in offsetting price competition.

Assets under management have benefited from increasing customer demand for expert financial advice to manage their assets. The digital advisory business, and the company’s focus on newer investment products to meet customer demand, have led to over 15% year over year growth in assets.

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Please refer to our complete analysis for Ameritrade.

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