E*TRADE FINANCIAL Corporation introduces results for its fourth quarter ended 31 December 2008.
During the fourth quarter total net revenue reached $486 million. Provision for loan losses composed $513 million. Net loss became $276 million, or $0.50 per share. Record daily average revenue trades (DARTs) gained 216,000, up 18% quarter over quarter.
Retail accounts made up 4.5 million, with net new accounts of 97,000. Total customer cash and deposits were equal to $32.3 billion. Customer net asset inflows reached $3.5 billion.
For the full-year 2008 total net revenue was $1.9 billion. Provision for loan losses was $1.6 billion. Net loss reached $512 million, or $1.00 per share ($1.58 loss per share from continuing operations). Company raised $754 million in cash proceeds through non-core asset sales. Also E*TRADE deleveraged the balance sheet by $8.3 billion, $5.7 billion in net loans and increased allowance for loan losses to $1.1 billion.
As of capital and liquidity, company gained Bank Tier-1 and risk-based capital ratios of 6.29% and 12.96%. Bank excess risk-based capital (excess to the regulatory well-capitalized threshold) reached approximately $716 million. Bank cash made up $3.2 billion and corporate cash $435 million; unused FHLB lines of $9.8 billion.
“We successfully grew and improved our retail franchise in 2008, despite the troubled economy,” says Donald H. Layton, chairman and CEO, E*TRADE FINANCIAL Corporation. “We also aggressively raised capital, built liquidity and reduced loan assets to ensure the Company remained on firm financial footing despite high credit losses.”
“During the fourth quarter, the U.S. economy went into a decline of historic proportions,” continues Layton. “Based upon the resulting increase in delinquencies, the Company increased its total loss allowance by $206 million or 24% from the third quarter, which generated a provision relatively unchanged from the prior quarter.”
L.D.