Brokerage TD Ameritrade Holding Corp. (AMTD) Tuesday reported a higher second-quarter profit, driven by growth in asset-based revenues and improved margins. Earnings per share met analysts' expectations, while revenues came slightly above view. The company also declared a higher quarterly dividend.
Total asset-based revenues were $376 million, higher than $362 million a year earlier. At the end of the quarter, the firm had $517 billion in total client assets, an increase from $452.4 billion reported last year, driven by its continued double-digit organic client asset growth rate and market appreciation.
Net new client assets were $12.9 billion, up from $10.8 billion in the year 2012.
Fred Tomczyk, president and chief executive officer of the company stated, "While retail investor sentiment has improved, a large number of investors remain cautious in this environment, and yet we continue to execute well against our strategy and on the items we can control."
In the second quarter, the company's net income increased to $144 million or $0.26 per share from $137 million or $0.25 per share in the previous year.
On average, 21 analysts polled by Thomson Reuters expected the company to earn $0.26 per share for the quarter. Analysts' estimates typically exclude special items.
Operating margin improved to 34.9 percent from 32.5 percent in the prior year.
Net revenues for the quarter grew to $679 million from $673 million in the prior year quarter, and came above analysts' estimate of $674.49 million. The company noted that 55 percent of net revenues were asset-based.
Commissions and transaction fees declined to $287 million from $292 million in the prior year. Average client trades per day was 378,096, compared to 387,571 in the year-ago period.
The company also declared a quarterly cash dividend of $0.09 per share, up from $0.06 per share last year, to share holders of record on May 1, 2013, payable on May 15.
AMTD closed Monday's regular trading at $19.44 on the NYSE. In the pre-market activity, the shares are up 0.98 percent.
For comments and feedback contact: editorial@rttnews.com
Business News
June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.