TD Ameritrade profit up 31 pct on client asset and trading gains
Jan 21 (Reuters) - TD Ameritrade Holding Corp, the largest U.S. discount brokerage by client trading activity, said Tuesday its fiscal first quarter profit rose 30.6 percent from a year earlier on fees from growing client assets and renewed investor interest in trading securities.
Its earnings per share of 35 cents beat analysts' consensus estimates of 33 cents as compiled by Thomson Reuters I/B/E/S and its record net revenue of $752 million also exceeded estimates of $735.9 million.
"Client engagement has trended upward following continued improvement in the macroeconomic environment and retail investor sentiment," TD Ameritrade Chief Executive Fred Tomczyk said in a prepared statement." Trading activity was at its highest level in more than two years."
Like rival Charles Schwab Corp that last week reported a double-digit profit gain on asset gathering and fees, TD Ameritrade has been seeking to diversify away from pure trading income. The company, whose largest shareholder is TD Bank Group, said its client assets rose 24 percent to $596 billion as of Dec. 31, with fee revenue of $72 million, up 29 percent from the year-earlier quarter.
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