UPDATE 2-TD Ameritrade earnings jump 20 percent; shares rise

Tue Jul 23, 2013 12:34pm EDT
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* Quarterly profit, revenue beat Wall Street expectations

* Average daily client trades rose 12 percent

* Revenue up 9 percent to $725 billion

* Shares up almost 4 percent

By Jed Horowitz

July 23 (Reuters) - TD Ameritrade Holding Corp posted a 19.5 percent rise in quarterly earnings, as interest revenue and trading commissions at the discount brokerage firm beat Wall Street expectations.

The results surpassed analysts' estimates of profit and revenue, and drove TD Ameritrade shares up almost 4 percent in midday trading.

Investors and analysts were impressed by a 5 percent increase in net interest revenue from the prior quarter, despite continuing low interest rates. They also applauded a 12 percent year-over-year jump to an average of more than 399,000 client trades a day, making the latest quarter the firm's most active in almost two years.

Chief Executive Officer Fred Tomczyk was nevertheless cautious about retail investors' enthusiasm about moving from cash and bonds into stocks. An anticipated "great rotation" into equity mutual funds and exchange-traded funds is at best a "mini rotation," he said on a conference call and in an interview with Reuters.   Continued...