Why Small-Cap Banks Have Been Underperforming
Small-cap banks have been underperforming due to the yield curve that has been flattening since the start of 2014.
While EWU has been hurt by Chinese economic slowdown, Glencore recorded promising returns. The UK has been stymied by the Eurozone’s slow recovery pace.
TD Ameritrade (AMTD) stock has returned 11% over the past 12 months. It’s backed by nominal growth in client assets combined with strong growth in the Investment Products division.
TD Ameritrade Holding’s (AMTD) major expenses include compensation and benefits, clearing and servicing, advertising and market development, and professional services.
TD Ameritrade (AMTD) posted strong organic growth in the first nine months of fiscal 2015. Trends for trading, asset gathering, and fee-based assets remained positive.
TD Ameritrade Holding (AMTD) reported an average balance of $155.7 billion for its Investment Products division in 3Q15, up 16% over last year.
TD Ameritrade Holding (AMTD) reported an average 434,000 daily trades in 3Q15. The company recorded an activity rate of 6.7% and growth of 8% on a year-over-year basis.
TD Ameritrade Holding (AMTD) ended 3Q15 with a record $702 billion in client assets, up 8% from the previous year.
TD Ameritrade’s (AMTD) stock has appreciated by approximately 11% over the past 12 months.
E*TRADE’s (ETFC) stock has returned 10% over the past six months backed by strong operating performance and deleveraging of its balance sheet.
E*TRADE’s key growth component is advice-based solutions. The assets in advice-based solutions have expanded by 10% to $3.2 billion in 2Q15 as compared to 2Q14.
E*TRADE (ETFC) has successfully brought down its total debt to $1 billion, a reduction of ~50% over the past few quarters.
E*TRADE Bank is a federally chartered savings bank that E*TRADE’s broker-dealers utilize to maximize the value of deposits.
E*TRADE incurred total expenses of $309 million in 2Q15. Expenses increased by $14 million compared to the previous quarter as well as compared to 2Q14.
E*TRADE ended the quarter with $302 billion in total customer assets compared to $299 billion at the end of the prior quarter and $281 billion a year ago.
E*TRADE (ETFC) reported DARTs (daily average revenue trades) of 149,000 during the quarter, a decrease of 12% from the prior quarter.
After the announcement of its second quarter earnings, E*TRADE (ETFC) stock has fallen by ~10%. The company’s market capitalization has fallen to $8.21 billion.
China’s devaluation of its currency, combined with a steep decline in Russia’s GDP, led investors to withdraw funds from these emerging markets.
Emerging market equities are trading at 10.5x on a one-year forward earnings basis. Valuations fell by 0.97% in the week ending August 14.
Emerging market equities fell by 2.40% in the week ending August 14, mainly due to the decline in equities of commodity-exporting nations like Russia and Brazil.
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