X
<

E*TRADE Beats Earnings, Revenue Estimates for 2Q17

PART:
1 2 3 4 5 6 7
Part 2
E*TRADE Beats Earnings, Revenue Estimates for 2Q17 PART 2 OF 7

Why E*TRADE’s Non-Interest Expenses Rose in 2Q17

Rise in non-interest expenses sequentially and year-over-year

E*TRADE (ETFC) posted a substantial rise in its total non-interest expenses in 2Q17 compared to 2Q16. In 2Q17, E*TRADE’s total non-interest expenses stood at $359.0 million compared to $295.0 million in 2Q16, reflecting an increase of ~21.7%. 

This rise resulted from its increased compensation expenses and communications expenses in 2Q17 compared to 2Q16. Its 2Q17 expenses related to compensation and benefits totaled $133.0 million. In 2Q16, these expenses totaled $125.0 million, reflecting a rise of 6.4%.

Why E*TRADE’s Non-Interest Expenses Rose in 2Q17

Interested in GCAP? Don't miss the next report.

Receive e-mail alerts for new research on GCAP

Success! You are now receiving e-mail alerts for new research. A temporary password for your new Market Realist account has been sent to your e-mail address.

Success! has been added to your Ticker Alerts.

Success! has been added to your Ticker Alerts. Subscriptions can be managed in your user profile.

E*TRADE’s total non-interest expenses in 2Q17 rose compared to 1Q17. In 1Q17, these expenses stood at $342.0 million. On the other hand, its 2Q17 communications expenses stood at $36.0 million compared to $20.0 million in 2Q16, which reflects an 80% increase. 

However, expenses related to advertising and market development also contributed to the rise in total non-interest expenses in 2Q17 compared to 2Q16. These expenses stood at $42.0 million compared to $30.0 million in 2Q16.

Diluted EPS

E*TRADE has diluted earnings per share (or EPS) of $1.93 on a trailing-12-month (or TTM) basis. Let’s look at the diluted EPS of other brokerage giants (XLF) on a TTM basis:

  • Gain Capital Holdings (GCAP): $0.11
  • TD Ameritrade (AMTD): $1.61
  • Interactive Brokers Group (IBKR): $1.09
X

Please select a profession that best describes you: