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Behind E*TRADE’s Net Interest Income Increase in 2Q17

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Updated

Rise in net interest income

E*TRADE’s (ETFC) net interest income rose from $286 million in 2Q16 to $356 million in 2Q17. This rise was mostly due to a rise in total interest income in 2Q17 compared to 2Q16. 

In 2Q17, the company posted total interest income of $378 million, and its total interest income in 2Q16 was $306 million.

In 2Q17, E*TRADE witnessed a rise in interest income from the securities that the company decided to hold until maturity. In 2Q17, the interest income from these securities stood at $137 million compared to $107 million in 2Q16. This rise in interest income led to the rise in the company’s total interest income in 2Q17 compared to 2Q16.

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However, interest income from the securities that are available for sale also rose in 2Q17 compared to 2Q16. In 2Q17, interest income from these securities stood at $95 million compared to $68 million in 2Q16. This rise in interest income also contributed to the rise in E*TRADE’s total interest income in 2Q17 compared to 2Q16.

Expected revenues

In the September 2017 quarter, E*TRADE (ETFC) is expected to report revenues of $0.59 billion. On the other hand, the expected revenues of other brokerage giants (XLF) for the September 2017 quarter are as follows:

  • Charles Schwab (SCHW): ~$2.2 billion
  • TD Ameritrade (AMTD): $0.93 billion
  • Interactive Brokers Group (IBKR): $0.36 billion
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