TD Ameritrade Reports Record 2016 Revenues

The broker has once again reported record earnings for the year with strong growth across all its businesses.

TD Ameritrade has today released its results for the fiscal year 2016, reporting net profits of $842 million, an increase of 3.7 percent over last year’s figure of $813 million.

According to a company statement, net revenues for the period were a record $3.3 billion, representing a 2 percent annual increase and another year of solid growth for the online broker.

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Financial Metrics

Earnings before interest, taxes, depreciation and amortization (EBITDA) for the full year reached $1.5 billion and represented 45 percent of net revenues, and pretax profits stood at $1.3 billion, which was 38 percent of net revenues.

In the final quarter of FY 2016, EBITDA constituted 39 percent of net revenues at $327 million, and pretax profit stood at $270 million, representing 33 percent of net revenues.

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Earnings per share (EPS) for the full year were once again, a record $1.58, while net new client assets of approximately $60 billion were recorded, indicating a growth rate of 9 percent. Average client trades per day were approximately 463,000, which was up slightly year on year.

Tim Hockey, TD Ameritrade president and chief executive officer said, “We’re pleased to report another year of strong growth across all our businesses. Strong asset-gathering and growth in investment products helped us deliver higher earnings despite a challenging rate environment. We averaged 463,000 trades per day and gathered $60 billion in net new client assets, a 9 percent growth rate. We end 2016 with strong momentum and plans firmly in place to continue building long-term earnings power.”

Outlook

Looking ahead, the company expects trading and organic growth to drive fiscal 2017 results, with a focus on managing expenses and generating savings that can be invested in initiatives to fuel future growth.

TD Ameritrade has also released its outlook for the 2017 fiscal year, which reflects expected earnings of $1.50 to $1.80 per diluted share for its 2017 fiscal year.

Acquistion

TD Ameritrade also announced today that it is acquiring Scottrade for $4 billion as it aims to increase the scale of its retail business, adding around 500 physical locations to its branch network.

 

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