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E*TRADE Financial Corporation Reports Monthly Activity for October 2014

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

Daily Average Revenue Trades (“DARTs”) for October were 175,447, a nine percent increase from September and a 10 percent increase from the year-ago period. The Company added 26,919 gross new brokerage accounts in October, ending the month with approximately 3.1 million brokerage accounts – an increase of 1,912 from September.

Net new brokerage assets were $0.8 billion in the month. During the month, customer security holdings increased by two percent, or $4.7 billion, and brokerage-related cash decreased by $0.4 billion to $40.0 billion. Bank-related cash and deposits decreased by $0.2 billion, ending the month at $5.7 billion. Customers were net buyers of approximately $0.5 billion in securities during the month.

Monthly Activity Data

Oct-14 Sep-14 Oct-13 % Chg. M/M % Chg. Y/Y
Trading days 23.0 21.0 23.0 N.M. N.M.
DARTs 175,447 160,643 159,703 9.2 % 9.9 %
Gross new brokerage accounts 26,919 33,717 30,276 (20.2)% (11.1)%
Gross new stock plan accounts 15,711 14,889 19,324 5.5 % (18.7)%
Gross new banking accounts 600 677 735 (11.4)% (18.4)%
Total gross new accounts 43,230 49,283 50,335 (12.3)% (14.1)%
Net new brokerage accounts 1,912 6,562 3,193 N.M. N.M.
Net new stock plan accounts 2,836 1,854 (2,836) N.M. N.M.
Net new banking accounts (1,780) (3,510) (3,274) N.M. N.M.
Net new accounts 2,968 4,906 (2,917) N.M. N.M.
End of period brokerage accounts 3,128,388 3,126,476 2,979,035 0.1 % 5.0 %
End of period stock plan accounts 1,266,565 1,263,729 1,201,856 0.2 % 5.4 %
End of period banking accounts 369,846 371,626 403,146 (0.5)% (8.3)%
End of period total accounts 4,764,799 4,761,831 4,584,037 0.1 % 3.9 %

Customer Assets ($B)

Security holdings $ 203.7 $ 199.0 $ 169.2 2.4 % 20.4 %
Customer payables (cash) 6.4 6.5 6.1 (1.5)% 4.9 %
Customer assets held by third parties(1) 14.8 14.8 13.1 0.0 % 13.0 %
Unexercised stock plan customer holdings (vested) 38.8 36.4 33.6 6.6 % 15.5 %
Customer assets in brokerage and stock plan accounts 263.7 256.7 222.0 2.7 % 18.8 %
Sweep deposits 18.8 19.1 19.4 (1.6)% (3.1)%
Savings, transaction and other 5.7 5.9 6.4 (3.4)% (10.9)%
Customer assets in banking accounts 24.5 25.0 25.8 (2.0)% (5.0)%
Total customer assets $ 288.2 $ 281.7 $ 247.8 2.3 % 16.3 %
Net new brokerage assets ($B)(2) $ 0.8 $ 1.0 $ 1.0 N.M. N.M.
Net new banking assets ($B)(2) (0.1) (0.1) (0.1) N.M. N.M.
Net new customer assets ($B)(2) $ 0.7 $ 0.9 $ 0.9 N.M. N.M.
Brokerage related cash ($B) $ 40.0 $ 40.4 $ 38.6 (1.0)% 3.6 %
Other customer cash and deposits ($B) 5.7 5.9 6.4 (3.4)% (10.9)%
Total customer cash and deposits ($B) $ 45.7 $ 46.3 $ 45.0 (1.3)% 1.6 %
Customer net (purchase) / sell activity ($B) $ (0.5) $ (1.9) $ (0.7) 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 brokerage assets and net new banking 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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