E*Trade Reports Mixed Q2 2015 Financial Metrics, DARTs Weigh

Total net revenue at E*Trade dropped to $445 million in Q2 2015, down -2.4% QoQ from $456 million in Q1

E*TRADE Financial Corporation (NASDAQ:ETFC) has reported its financial metrics for Q2 2015, according to an E*TRADE statement.

The group’s net income during Q2 2015 came in at $292 million, or $0.99 per diluted share. The latest figures represent a substantial jump from $40 million, or $0.14 per diluted share in Q1 2015 and $69 million, or $0.24 per diluted share in Q2 2014.

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In addition, total net revenue at E*Trade dropped to $445 million in Q2 2015, down -2.4% QoQ from $456 million in Q1 2015 – across a yearly timeframe, the latest revenues managed to rise 16% YoY from $438 million in Q2 2014.

E*TRADE also reported its Daily Average Revenue Trades (DARTs) for Q2 2015, which showed only 149,000, constituting a decrease of -12.0% QoQ from Q1 2015 and a loss of -4.0% YoY from Q2 2014.

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One positive that can be taken from the Q2 2015 metrics however, is that E*Trade managed to gain nearly 25,000 net new brokerage accounts from Q1 2015, bringing the overall total to 3.2 million. However, even under this lens, brokerage account growth has slowed QoQ, having gained 39,000 in Q1 2015.

Finally, E*Trade finished Q2 2015 with $302 billion in total customer assets, a growth of 1.0% QoQ from $299 billion in Q1 2015 – this figure is even more pronounced compared to Q2 2014, which saw just $281 billion last year.

During the quarter, customers added $0.9 billion in net new brokerage assets. Brokerage related cash increased by $0.4 billion to $42.0 billion during the second quarter. Customers were net buyers of approximately $0.3 billion of securities. Margin receivables averaged $8.1 billion in the quarter, up 3 percent from the prior quarter and 11 percent year over year, ending the quarter at $8.1 billion.

According to said Paul Idzik, Chief Executive Officer, in a recent statement on the financial metrics, “We had a sound second quarter as we continued to make progress on key customer and capital initiatives. Despite slower trading volumes across the industry, our business continued to grow, with customer margin receivables just below record highs and total customer assets surpassing $300 billion.”

“We maintained our steady drumbeat of customer-led innovations, and on the capital front, we performed well in our second annual Dodd-Frank Act Stress Tests, distributed more than $140 million in capital to the parent, and recently finalized the move of our clearing broker out from under our bank. I am encouraged by the runway we’ve established and by the team’s ability to continue driving value for our customers and owners,” he added,

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