TD Ameritrade (AMTD) said its second-quarter earnings improved close to 20% on Tuesday, beating analysts' estimates: Net income was $184 million, or $0.33 a share, versus $154 million, or $0.28 a share, a year ago.
Total revenue increased 9% year over year and 7% from the prior quarter to $725 million.
"TD Ameritrade had a strong third quarter in virtually all metrics, as we continue to execute well against our growth strategy while being disciplined on expenses," said President & CEO Fred Tomczyk, in a press release. "We had record interest rate sensitive assets, record net revenues and record market fee-based revenue during the quarter."
Net new client assets for the period were roughly $11 billion, representing an annualized growth rate of 8%. However, client asset flows were higher in the prior quarter, at $13 billion, and slightly lower a year ago, at $10 billion.
Average daily client trades per day hit about 399,000, an activity rate of close to 7%.
Of its total second-quarter revenue, $384 million, or 53%, was asset based.
Commissions and trading fees grew to $321 million, up from $266 million a year ago and $287 million in the prior quarter. Investment product fees increased to $65 million, up 23% from $54 million last year and a jump of nearly 5% from $62 million last quarter.
Client assets now total nearly $524 billion vs. $554 billion a year ago and $517 billion on March 31.
