The Financial Post reports in its Wednesday edition TD Ameritrade's quarterly net income is up 3 per cent from a year earlier despite higher expenses, continuing low interest rates, and a drop in client trades and commissions.
A Reuters dispatch to the Post says the discount broker reported profit of $190-million, or 34 cents a share, in its third fiscal quarter ended June 30 (all figures U.S.). The improvement came on a 24-per-cent rise in new assets to $13.4-billion, a surge of business with independent investment advisers whose clients open TD Ameritrade accounts and sales of fee-based products.
Clients who trade heavily during times of volatility have been stymied by unusually calm markets, TD Ameritrade executives said. Chief executive officer Fred Tomczyk said on a call the lack of volatility was surprising, given market-shaking geopolitical events such as the Ukraine plane crisis and Middle East hostilities.
Daily average trades by TD Ameritrade clients fell to 401,000 in the just-ended quarter from a record 492,000 in the first quarter, and are down to 396,000 thus far in July. Fee revenue, however, jumped 22 per cent to $79-million.
Brokerage accounts remain TD Ameritrade's core product.
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