Online brokerage firm E*Trade Financial Corp. (ETFC), Wednesday reported a narrower net loss for the fourth quarter, helped by lower loan loss provision.
The New York-based company posted a net loss of $67 million or $0.04 per share for the fourth quarter, compared to a net loss of $276 million or $0.50 per share in the prior year quarter. On average, 15 analysts polled by Thomson Reuters expected the company to report a loss of $0.04 per share for the fourth quarter. Analysts' estimates typically exclude special items.
Fourth quarter net revenue grew to $523.44 million from $486.43 million in the same quarter last year. Six analysts had a consensus revenue estimate of $240.52 million for the fourth quarter.
Net operating interest income increased to $321.0 million from $274.1 million in the previous year quarter. Total non-interest income dropped to $202.5 million from $212.3 million in the year-ago quarter.
Fourth quarter provision for loan losses decreased to $292 million from $513 million a year earlier.
Total operating expense for the quarter increased to $318.4 million from $321.4 million in the prior year quarter.
Total Daily Average Revenue Trades or DARTs was 174,000 in the fourth quarter, a 20% decrease over a year ago.
At quarter end, E*Trade reported 4.5 million customer accounts, which included 2.7 million brokerage accounts.
For the quarter under review, in the home equity portfolio of E*Trade representing company's greatest exposure to loan losses, special mention delinquencies for 30 to 89 days dropped 39%. Risk delinquencies in a period of 30-179 days declined 36%.
Total special mention delinquencies (30-89 days) for the company's entire bank loan portfolio, which also includes one- to four-family and consumer and other loans, declined by 3% in the quarter.
At December 31, 2009, the company reported Bank Tier 1 capital ratios of 6.69% to total adjusted assets and 12.79% to risk-weighted assets. The Bank had excess risk-based total capital of $899 million at the year-end.
During the quarter, E*Trade appointed its lead independent director, Robert Druskin, as the chairman of the board and as the interim chief executive officer. Druskin succeeds Donald Layton to both the positions.
For the full year 2009, E*Trade reported a net loss of $1.3 billion or $1.18 per share, compared to $511.8 million or $1.00 per share in the previous year.
Annual net revenue increased to $2.22 billion from $1.93 billion in the prior year.
Analysts expected the company to report a loss of $1.21 per share on revenue of $742.40 million for the year.
Amongst others in the industry, Charles Schwab Corp. (SCHW), reported a fourth quarter profit that dropped 47% from a year ago, as revenues declined 23% due to reductions in short-term interest rates, as well as an increase of money market fund fee waivers.
Ameritrade Holding Corp. (AMTD) reported a decline in first-quarter profit, hurt by an increase in operating expenses and a year-over-year drop in asset-based revenues, which accounted for 45% of net revenues, amid a low interest rate environment.
E*Trade closed Wednesday's regular trading session at $1.65, up 3 cents or 1.85% on a volume of 49.25 million shares. In the after-hours, the shares gained 3 cents or 1.82%. The stock has been moving in a range of $0.59 - $2.90 for the past 52 weeks, with an average daily volume of about 46.87 million shares for the past three months.
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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.