E*TRADE Financial Corporation Reports Monthly Activity for July 2010

NEW YORK  (Profitable.com)  E*TRADE Financial Corporation (NASDAQ: ETFC) today released its Monthly Activity Report for July 2010.

Daily Average Revenue Trades (“DARTs”) for July were 129,147, a five percent decrease from June and a 20 percent decrease from the year-ago period. The Company ended the month with nearly 2.7 million brokerage accounts – including gross new brokerage accounts of 24,034 and net new brokerage accounts of 4,536 during the month. Total accounts ended the month at approximately 4.2 million.

Net new brokerage assets were positive $0.5 billion in the month, totaling $4.8 billion year-to-date. During the month, customer security holdings increased by six percent, or $6.3 billion, and brokerage-related cash increased by $0.5 billion to $21.2 billion, with customers as net sellers of approximately $0.3 billion in securities in July. Bank-related cash and deposits declined by $0.2 billion in the month.

 
Monthly Activity Data
                     
    Jul-10   Jun-10   Jul-09(1)   % Chg. M/M   % Chg. Y/Y
                     
                     
Trading days     21.0       22.0       22.0     N.M.   N.M.
                     
DARTs     129,147       136,074       161,589     (5.1)%   (20.1)%
                     
Gross new brokerage accounts     24,034       26,951       28,854     (10.8)%   (16.7)%
Gross new stock plan accounts     16,610       10,346       12,496     60.5 %   32.9 %
Gross new banking accounts     1,544       1,697       3,406     (9.0)%   (54.7)%
Total gross new accounts     42,188       38,994       44,756     8.2 %   (5.7)%
                     
Net new brokerage accounts     4,536       (5,159 )     7,005     N.M.   N.M.
Net new stock plan accounts     (1,000 )     (421 )     (9,696 )   N.M.   N.M.
Net new banking accounts     (10,422 )     (12,831 )     (12,052 )   N.M.   N.M.
Net new accounts     (6,886 )     (18,411 )     (14,743 )   N.M.   N.M.
                     
End of period brokerage accounts     2,654,036       2,649,500       2,633,798     0.2 %   0.8 %
End of period stock plan accounts     1,029,647       1,030,647       1,010,280     (0.1)%   1.9 %
End of period banking accounts     554,966       565,388       782,070     (1.8)%   (29.0)%
End of period total accounts     4,238,649       4,245,535       4,426,148     (0.2)%   (4.2)%
                     
Customer Assets ($B)                    
Security holdings   $ 105.1     $ 98.8     $ 86.9     6.4 %   20.9 %
Customer payables (cash)     4.2       4.0       4.5     5.0 %   (6.7)%
Customer cash balances held by third parties     3.0       2.9       2.9     3.4 %   3.4 %
Unexercised stock plan customer options (vested)     16.1       14.4       15.0     11.8 %   7.3 %
Customer assets in brokerage and stock plan accounts     128.4       120.1       109.3     6.9 %   17.5 %
Sweep deposit accounts     14.0       13.8       11.3     1.4 %   23.9 %
Savings and transaction accounts     9.0       9.1       13.4     (1.1)%   (32.8)%
CDs     0.7       0.8       1.7     (12.5)%   (58.8)%
Customer assets in banking accounts     23.7       23.7       26.4     0.0 %   (10.2)%
Total customer assets   $ 152.1     $ 143.8     $ 135.7     5.8 %   12.1 %
                     
Net new brokerage assets ($B)(2)   $ 0.5     $ 0.4     $ 0.3     N.M.   N.M.
Net new banking assets ($B)(2)     (0.2 )     (0.4 )     (0.4 )   N.M.   N.M.
Net new customer assets ($B)(2)   $ 0.3     $     $ (0.1 )   N.M.   N.M.
                     
Brokerage related cash ($B)   $ 21.2     $ 20.7     $ 18.7     2.4 %   13.4 %
Other customer cash and deposits ($B)     9.7       9.9       15.1     (2.0)%   (35.8)%
Total customer cash and deposits ($B)   $ 30.9     $ 30.6     $ 33.8     1.0 %   (8.6)%
 
 

(1) All periods presented have been updated to exclude international local activity.
(2) 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 banking assets and net new brokerage assets metrics treat asset flows between E*TRADE entities in the same manner as unrelated third party accounts.

Historical metrics and financials through July 2010 can be found on the E*TRADE Financial investor relations website at https://investor.etrade.com.

About E*TRADE Financial

The E*TRADE Financial family of companies provides financial services including online brokerage and related banking products and services to retail investors. Specific business segments include Trading and Investing, and Balance Sheet Management. Securities products and services are offered by E*TRADE Securities LLC (Member FINRA/SIPC). Bank products and services are offered by E*TRADE Bank, a Federal savings bank, Member FDIC, or its subsidiaries. ETFC-G

Important Notices

E*TRADE Financial, E*TRADE and the E*TRADE logo are trademarks or registered trademarks of E*TRADE Financial Corporation.

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