Online brokerage TD Ameritrade 3Q profit up 3 pct as strong trading, asset growth continue


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OMAHA, Nebraska — TD Ameritrade Holding Corp. said its quarterly profit rose 3 percent as clients entrusted the online brokerage with more assets and trading activity remained strong.

TD Ameritrade CEO Fred Tomczyk said investors have remained bullish even as geopolitical problems heated up in Ukraine, Syria and Iraq. He said the company is seeing strong demand for its investment advice, and asset growth remains strong.

The Omaha, Nebraska-based company said Tuesday that it earned $190 million, or 34 cents per share, during its fiscal third quarter. That's up from earnings of $184 million, or 33 cents per share, a year ago.

TD Ameritrade's revenue grew 5 percent to $763 million from $725 million a year ago.

Analysts surveyed by FactSet expected earnings per share of 34 cents on $758 million revenue.

Tomczyk said he thinks government efforts to stimulate the economy in the United States, Europe and elsewhere have helped the stock market continue setting records.

"There's a lot of stimulus in the system right now, and it's not just in the U.S.," Tomczyk said.

TD Ameritrade handled an average of 401,468 trades per day in the quarter, up from 399,216 trades per day a year ago. And 42 percent of the trades in the most recent quarter were derivatives.

That helped the company generate $317 million in transaction fees, down only slightly from last year's $321 million.

TD Ameritrade also reported $13.4 billion in net new assets in the quarter, up from $10.8 billion a year ago. That helped the company generate $430 million in asset-based revenue in the quarter, up from $384 million last year.

TD Ameritrade repurchased stock for the first time since 2012 during the quarter when it spent roughly $89 million on 2.9 million shares because executives believed the stock was a good buy at an average cost of $30.48 per share.

Citi analyst William Katz said Ameritrade's results were in line with what he expected, but the stock buyback was a pleasant surprise.

TD Ameritrade's shares slipped 8 cents at $31.07 in afternoon trading. Its shares have risen 19 percent over the past year.


Online:

TD Ameritrade Holding Corp.: http://www.amtd.com

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