Behind E*TRADE’s Assets and Liabilities
Rise in assets
E*TRADE Financial Corporation (ETFC) had total assets of $58.7 billion on June 30, 2017, a 20% increase from its total assets balance on December 31, 2016. This substantial increase resulted mostly from an increase in securities.
On June 30, 2017, the company reported securities of ~$40.4 billion compared to $29.6 billion on December 31, 2016, for a 36% increase. This increase in the securities balance was primarily due to purchases made.
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E*TRADE Financial reported margin receivables of ~$7.8 billion on June 30, 2017, compared to ~$6.7 billion on December 31, 2016, implying a 15% increase. This increase was mostly due to favorable market sentiments.
E*TRADE Financial generated an ~1.3% return on invested capital over the last 12 months (or LTM). Its peers (XLF) Goldman Sachs Group (GS), LPL Financial Holdings (LPLA), and Lazard Limited (LAZ) generated returns of ~1.4%, ~8.8%, and ~16.2%, respectively, on their invested capital on an LTM basis.
E*TRADE Financial reported total liabilities (excluding shareholders’ equity) of ~$52.1 billion on June 30, 2017, compared to ~$42.7 billion on December 31, 2016, reflecting an increase of 22%.
E*TRADE reported deposits of ~$40.1 billion on June 30, 2017, compared to ~$31.7 billion on December 31, 2016, reflecting a 26% rise. This increase in deposits resulted from a transfer of customer cash to the company’s balance sheet from third parties.