E-Trade’s Growth Momentum Continued In August

by Trefis Team
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After a decent performance across key metrics in the first 7 months of the year, E-Trade  (NASDAQ:ETFC) sustained its growth momentum in August. The brokerage saw a 44% year-over-year rise in trading volumes during the month. The acquisition of OptionsHouse in mid-2016 continued to contribute to growth in brokerage accounts and derivative trading volumes, with over 31% of trading volumes attributed to derivatives, in comparison to 23% in August 2016.

Interest earning assets have also continued their strong growth, in large part due to the rate hikes over recent months and the expectation of further interest rate hikes going forward. As E-Trade has a higher yield on its interest earning assets (2.7%) relative to most competitors, rate hikes should drive solid revenue growth for the company. With the likelihood of a series of hikes in 2017, we expect the growth in assets to continue.

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