E-Trade Reports February Activity

NEW YORK — E-Trade Financial Corporation has released its Monthly Activity Report for February 2016.

Daily Average Revenue Trades (“DARTs”) for February were 164,077, a six percent decrease from January and a nine percent decrease from the year-ago period. The Company added 38,494 gross new brokerage accounts in February and ended the month with approximately 3.2 million brokerage accounts — an increase of 17,875 from January.

Net new brokerage assets were $0.9 billion in the month. During the month, customer security holdings increased by $2.2 billion, and brokerage-related cash increased by $0.1 billion to $41.1 billion. Bank-related cash and deposits remained flat, ending the month at $5.3 billion. Customers were net buyers of approximately $0.7 billion in securities during the month.

Monthly Activity Data

Feb-16

Jan-16 Feb-15 % Chg. M/M % Chg. Y/Y
Trading days 20.0 19.0 19.0 N.M. N.M.
DARTs 164,077 175,346 179,420 (6.4 )% (8.6 )%
Gross new brokerage accounts 38,494 29,666 37,224 29.8 % 3.4 %
Gross new stock plan accounts 16,300 25,145 15,166 (35.2 )% 7.5 %
Gross new banking accounts 363 377 422 (3.7 )% (14.0 )%
Total gross new accounts 55,157 55,188 52,812 (0.1 )% 4.4 %
Net new brokerage accounts(1) 17,875 4,815 20,715 N.M. N.M.
Net new stock plan accounts (1,017 ) 11,395 (4,307 ) N.M. N.M.
Net new banking accounts (1,310 ) (1,580 ) (1,373 ) N.M. N.M.
Net new accounts 15,548 14,630 15,035 N.M. N.M.
End of period brokerage accounts(1) 3,236,231 3,218,356 3,171,672 0.6 % 2.0 %
End of period stock plan accounts 1,418,531 1,419,548 1,269,249 (0.1 )% 11.8 %
End of period banking accounts 336,998 338,308 359,108 (0.4 )% (6.2 )%
End of period total accounts 4,991,760 4,976,212 4,800,029 0.3 % 4.0 %

Customer Assets ($B)

Security holdings $ 192.6 $ 190.4 $ 216.0 1.2 % (10.8 )%
Customer payables (cash) 6.4 6.2 6.7 3.2 % (4.5 )%
Customer assets held by third parties(2) 10.9 11.0 16.1 (0.9 )% (32.3 )%
Sweep deposits 23.8 23.8 19.3 0.0 % 23.3 %
Brokerage customer assets 233.7 231.4 258.1 1.0 % (9.5 )%
Unexercised stock plan customer holdings (vested) 28.6 29.2 39.6 (2.1 )% (27.8 )%
Savings, checking and other banking customer assets 5.3 5.3 5.8 0.0 % (8.6 )%
Total customer assets 267.6 265.9 303.5 0.6 % (11.8 )%
Net new brokerage assets ($B)(3) $ 0.9 $ 1.0 $ 1.7 N.M. N.M.
Net new banking assets ($B)(3) 0.0 (0.1 ) 0.1 N.M. N.M.
Net new customer assets ($B)(3) $ 0.9 $ 0.9 $ 1.8 N.M. N.M.
Brokerage related cash ($B) $ 41.1 $ 41.0 $ 42.1 0.2 % (2.4 )%
Other customer cash and deposits ($B) 5.3 5.3 5.8 0.0 % (8.6 )%
Total customer cash and deposits ($B) $ 46.4 $ 46.3 $ 47.9 0.2 % (3.1 )%
Customer net (buy) / sell activity ($B) $ (0.7 ) $ (1.2 ) $ 0.8 N.M. N.M.
(1)

Net new brokerage accounts include the closure of 1,524 accounts in February 2016 and 1,440 accounts in January 2016 related to the shutdown of the Company’s Hong Kong and Singapore operations.

(2) Customer assets held by third parties are held outside E*TRADE Financial and include money market funds and sweep deposit accounts at unaffiliated financial institutions. Customer assets held by third parties are not reflected in the Company’s consolidated balance sheet and are not immediately available for liquidity purposes. However, the Company maintains the ability to transfer approximately half of these customer assets to its balance sheet with notification to the third party institutions and customer consent, as appropriate.
(3) Net new customer assets are total inflows to all new and existing customer accounts less total outflows from all closed and existing customer accounts. The net new brokerage assets and net new banking assets metrics treat asset flows between E*TRADE entities in the same manner as unrelated third party accounts.