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E*TRADE Financial Corporation Reports Monthly Activity for August 2014

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E*TRADE Financial Corporation (NASDAQ:ETFC) today released its Monthly Activity Report for August 2014.

Daily Average Revenue Trades (“DARTs”) for August were 146,165, a five percent decrease from July and a one percent decrease from the year-ago period. The Company added 30,879 gross new brokerage accounts in August, ending the month with approximately 3.1 million brokerage accounts – an increase of 13,377 from July.

Net new brokerage assets were $0.9 billion in the month. During the month, customer security holdings increased by five percent, or $8.9 billion, and brokerage-related cash increased by $1.0 billion to $41.0 billion. Bank-related cash and deposits ended the month unchanged at $5.9 billion. Customers were net sellers of approximately $0.4 billion in securities during the month.

Monthly Activity Data

Aug-14 Jul-14 Aug-13 % Chg. M/M % Chg. Y/Y
Trading days 21.0 21.5 22.0 N.M. N.M.
DARTs 146,165 153,671 147,517 (4.9 )% (0.9 )%
Gross new brokerage accounts 30,879 29,665 30,132 4.1 % 2.5 %
Gross new stock plan accounts 17,742 25,017 26,827 (29.1 )% (33.9 )%
Gross new banking accounts 678 660 803 2.7 % (15.6 )%
Total gross new accounts 49,299 55,342 57,762 (10.9 )% (14.7 )%
Net new brokerage accounts 13,377 3,571 9,466 N.M. N.M.
Net new stock plan accounts 5,977 9,716 13,616 N.M. N.M.
Net new banking accounts (1,732 ) (2,439 ) (2,432 ) N.M. N.M.
Net new accounts 17,622 10,848 20,650 N.M. N.M.
End of period brokerage accounts 3,119,914 3,106,537 2,970,338 0.4 % 5.0 %
End of period stock plan accounts 1,261,875 1,255,898 1,205,114 0.5 % 4.7 %
End of period banking accounts 375,136 376,868 408,667 (0.5 )% (8.2 )%
End of period total accounts 4,756,925 4,739,303 4,584,119 0.4 % 3.8 %

Customer Assets ($B)

Security holdings $ 204.4 $ 195.5 $ 158.3 4.6 % 29.1 %
Customer payables (cash) 6.9 6.6 5.4 4.5 % 27.8 %
Customer assets held by third parties(1) 14.8 14.3 12.0 3.5 % 23.3 %
Unexercised stock plan customer holdings (vested) 38.6 35.8 30.7 7.8 % 25.7 %
Customer assets in brokerage and stock plan accounts 264.7 252.2 206.4 5.0 % 28.2 %
Sweep deposits 19.3 19.1 19.4 1.0 % (0.5 )%
Savings, transaction and other 5.9 5.9 6.5 0.0 % (9.2 )%
Customer assets in banking accounts 25.2 25.0 25.9 0.8 % (2.7 )%
Total customer assets $ 289.9 $ 277.2 $ 232.3 4.6 % 24.8 %
Net new brokerage assets ($B)(2) $ 0.9 $ 0.4 $ 1.1 N.M. N.M.
Net new banking assets ($B)(2) (0.0 ) (0.1 ) (0.0 ) N.M. N.M.
Net new customer assets ($B)(2) $ 0.9 $ 0.3 $ 1.1 N.M. N.M.
Brokerage related cash ($B) $ 41.0 $ 40.0 $ 36.8 2.5 % 11.4 %
Other customer cash and deposits ($B) 5.9 5.9 6.5 0.0 % (9.2 )%
Total customer cash and deposits ($B) $ 46.9 $ 45.9 $ 43.3 2.2 % 8.3 %
Customer net (purchase) / sell activity ($B) $ 0.4 $ (0.7 ) $ (1.0 ) N.M. N.M.

(1) 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.

(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 can be found on E*TRADE Financial’s corporate website at https://about.etrade.com.

About E*TRADE Financial

E*TRADE Financial and its subsidiaries provide 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. More information is available at www.etrade.com.

Important Notices

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

(c) 2014 E*TRADE Financial Corporation. All rights reserved.

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