TD Ameritrade Marked Continous Growth in Asset Gathering and Trading

TD Ameritrade Marked Continous Growth in Asset Gathering and Trading
19.07.2016 01:14 pm

TD Ameritrade Marked Continous Growth in Asset Gathering and Trading

Online Trading

TD Ameritrade Holding Corporation has released results for the third quarter of fiscal 2016. The Company gathered approximately $14 billion in net new client assets, and reported 462,000 client trades per day, on average, resulting in growth for each of its core revenue streams.

The Company’s results for the quarter ended June 30, 2016 include the following:

  • Record $0.45 in earnings per diluted share, on net income of $240 million, up 25 percent year over year and inclusive of a favorable $33 million, or $0.06 per share, tax liability adjustment
  • Net new client assets of approximately $14 billion, an annualized growth rate of 8 percent
  • Average client trades per day of approximately 462,000, an activity rate of 6.8 percent
  • Net revenues of $838 million, 56 percent of which were asset-based
  • Record investment product fee revenue of $96 million, up 13 percent year over year
  • Pre-tax income of $334 million, or 40 percent of net revenues
  • EBITDA of $393 million, or 47 percent of net revenues
  • Record interest rate-sensitive assets of $113 billion, up 10 percent year over year
  • Record client assets of $736 billion, up 5 percent year over year

“During the quarter we remained focused on what we could control and delivered strong organic growth,” said Fred Tomczyk, chief executive officer. “Net new client assets were up 16 percent year over year at $14 billion, client trading remained strong at an average of 462,000 trades per day, and investment product fees from guidance and advice products were a record $96 million. As we enter our final quarter of fiscal 2016, our focus will be on finishing the year strongly, completing our CEO transition and positioning ourselves for 2017.”

“Results this quarter reflected mixed investor sentiment. Long-term investors expressed some reticence to move new money, while traders increased their equity exposure. Both segments were opportunistic, using events like the historic Brexit vote, to lean into the market decline,” said Tim Hockey, president. “We expect these bouts of volatility to continue, underscoring the importance of our client value proposition. So, we must continue to innovate and provide our clients with powerful tools, a variety of products and mobility through cutting-edge apps to help them respond to potential opportunities.”

“We are reporting a record $0.45 in earnings per share for the quarter, which is reflective of solid organic growth and includes a $0.06 benefit we realized as the result of a tax liability adjustment,” said Steve Boyle, executive vice president and chief financial officer. “Interest rate-sensitive assets, now at $113 billion, continue to rise, we remain disciplined on expenses, and we returned nearly $140 million in capital to our shareholders through cash dividends and share repurchases. It was a good quarter, and our core business remains well-positioned for the future.”

Capital Management

The Company paid $90 million in its third fiscal quarter, or $0.17 per share, in cash dividends. The Company also repurchased approximately 1.7 million shares of its common stock.

The Company has declared a $0.17 per share quarterly cash dividend, payable on Aug. 18, 2016 to all holders of record of common stock as of Aug. 4, 2016.

Company Hosts Conference Call

TD Ameritrade will host its June Quarter conference call this morning, July 19, 2016, at 8:30 a.m. EDT (7:30 a.m. CDT). Participants may listen to the conference call by dialing 877-648-7976. The Company will webcast the conference call through www.amtd.com, via the “Presentations & Events” page of the web site. A replay of the phone call will be available by dialing 855-859-2056 and entering the Conference ID 38225239 beginning at 11:30 a.m. EDT (10:30 a.m. CDT) on July 19, 2016. The replay will be available until 11:59 p.m. EDT (10:59 p.m. CDT) on July 27, 2016. A transcript of the call will be available on the Company’s corporate web site, www.amtd.com, via either the “Investor Relations” page or the “Presentations & Events” page beginning Wednesday, July 20, 2016.

Interested parties can visit or subscribe to newsfeeds at www.amtd.com for the most up-to-date corporate financial information, presentation announcements, transcripts and archives. The company also communicates this information via Twitter,@TDAmeritradePR. Web site links, corporate titles and telephone numbers provided in this release, although correct when published, may change in the future.

Source: TD Ameritrade Holding Corporation

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