TD Ameritrade Reports Positive Quarter, Scottrade Acquisition Closure Nears
- TD Ameritrade reports net profit of $231m, revenue of $931m, and has maintained a stable outlook for fiscal 2017
TD Ameritrade, one of the largest brokers for retail clients in the US, today released its second quarter earning results. The firm reports a net profit of $231 million, which is a decrease of 4 percent year-on-year. The revenue for the period grew 11 percent from the previous year to $931 million on the back of strong trading volumes and asset based revenue growth.
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The company reported EBITDA (earnings before interest, tax, depreciation and amortisation) of $437 million, an increase of 11 percent on a year-on-year basis, representing 47 percent of the total revenue. Pretax income grew 12 percent from a year ago to $373 million and is 40 percent of the net revenue. Earnings per share (EPS) stood at $0.44, which is a marginal decline of 2 percent when compared to the same period last year.
During the second quarter, the company added a record $22 billion of net new client assets to mark a record of $882 billion, which is an annualised increase of 10 percent. For the quarter ending June 2017, net new asset growth rate was up by 33 percent to $60.2 billion. The company recorded 510,000 average client trades every day.
The company has maintained its forecast for fiscal 2017 on the back of robust investor engagement, high trading volumes and asset based revenue growth. For fiscal 2017, it is aiming for an addition of $85 billion to net new client assets, a 42 percent share in revenue for pre-tax margin and EPS of $1.80.
Commenting on the earnings report, the CEO of TD Ameritrade Tim Hockey said: “Investors remained broadly engaged, with strong trading volumes despite persistent low market Volatility Volatility In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders Read this Term. We’re seeing healthy trends in new account growth and asset inflows from both new and existing clients, and our institutional channel continues to break records for asset gathering."
"Our technology pipelines are full of enhancements that address client irritants and introduce new, cutting edge solutions. We have a lot to feel good about, but as we plan for the close of the Scottrade Acquisition Acquisition Acquisition means acquiring or taking possession or the securing of property, services, or abilities. To put it simply, it is the act or process of acquiring or gaining. You can acquire a work of art, you can acquire an ability such as speaking another language, you can acquire a business or shares in a company and you can acquire an accountant's service. For example, you can acquire a new car. In a broad sense, Acquisition can mean the act of taking ownership or possession of something. There Acquisition means acquiring or taking possession or the securing of property, services, or abilities. To put it simply, it is the act or process of acquiring or gaining. You can acquire a work of art, you can acquire an ability such as speaking another language, you can acquire a business or shares in a company and you can acquire an accountant's service. For example, you can acquire a new car. In a broad sense, Acquisition can mean the act of taking ownership or possession of something. There Read this Term on the horizon, we have much more yet to do," Hockey elaborated.
TD Ameritrade, one of the largest brokers for retail clients in the US, today released its second quarter earning results. The firm reports a net profit of $231 million, which is a decrease of 4 percent year-on-year. The revenue for the period grew 11 percent from the previous year to $931 million on the back of strong trading volumes and asset based revenue growth.
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The London Summit 2017 is coming, get involved!
The company reported EBITDA (earnings before interest, tax, depreciation and amortisation) of $437 million, an increase of 11 percent on a year-on-year basis, representing 47 percent of the total revenue. Pretax income grew 12 percent from a year ago to $373 million and is 40 percent of the net revenue. Earnings per share (EPS) stood at $0.44, which is a marginal decline of 2 percent when compared to the same period last year.
During the second quarter, the company added a record $22 billion of net new client assets to mark a record of $882 billion, which is an annualised increase of 10 percent. For the quarter ending June 2017, net new asset growth rate was up by 33 percent to $60.2 billion. The company recorded 510,000 average client trades every day.
The company has maintained its forecast for fiscal 2017 on the back of robust investor engagement, high trading volumes and asset based revenue growth. For fiscal 2017, it is aiming for an addition of $85 billion to net new client assets, a 42 percent share in revenue for pre-tax margin and EPS of $1.80.
Commenting on the earnings report, the CEO of TD Ameritrade Tim Hockey said: “Investors remained broadly engaged, with strong trading volumes despite persistent low market Volatility Volatility In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders Read this Term. We’re seeing healthy trends in new account growth and asset inflows from both new and existing clients, and our institutional channel continues to break records for asset gathering."
"Our technology pipelines are full of enhancements that address client irritants and introduce new, cutting edge solutions. We have a lot to feel good about, but as we plan for the close of the Scottrade Acquisition Acquisition Acquisition means acquiring or taking possession or the securing of property, services, or abilities. To put it simply, it is the act or process of acquiring or gaining. You can acquire a work of art, you can acquire an ability such as speaking another language, you can acquire a business or shares in a company and you can acquire an accountant's service. For example, you can acquire a new car. In a broad sense, Acquisition can mean the act of taking ownership or possession of something. There Acquisition means acquiring or taking possession or the securing of property, services, or abilities. To put it simply, it is the act or process of acquiring or gaining. You can acquire a work of art, you can acquire an ability such as speaking another language, you can acquire a business or shares in a company and you can acquire an accountant's service. For example, you can acquire a new car. In a broad sense, Acquisition can mean the act of taking ownership or possession of something. There Read this Term on the horizon, we have much more yet to do," Hockey elaborated.