UPDATE 2-TD Ameritrade profit up 40 percent as trades rise

Tue Oct 29, 2013 2:39pm EDT
 
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* Fourth-quarter net income $0.36 vs est. $0.35

* Revenue rises 10 percent to $709 million

* Forecasts FY 2014 EPS $1.20-$1.40 vs est. $1.21

* Raises dividend to 12 cents from 9 cents

* Declares special dividend of 50 cents

By Jed Horowitz

Oct 29 (Reuters) - TD Ameritrade Holding Corp, the biggest U.S. discount brokerage by client-trading volume, reported a 40 percent jump in its fiscal fourth-quarter net income that just beat analysts' estimates as both trading commissions and product fees soared.

Shares of TD Ameritrade were down 1.1 percent to $27.62 in afternoon trading on Tuesday. In research reports, some analysts said they were disappointed at the decline in net interest margin during the quarter and the firm's weak interest profit forecast for next year.

Budget and economic policy uncertainty in Washington, nevertheless, stimulated active traders during the quarter, company executives said. At the same time, more conservative investors bought fee-based products such as mutual funds and exchange-traded funds. The quarter ended on Sept. 30, just before the government shutdown.   Continued...