E-Trade Financial swung to loss in Q3
NEW YORK -- Online brokerage E-Trade Financial Corp. said Thursday that it swung to a loss in the third quarter, as investors made far fewer trades than a year ago.
The company reported a net loss of $29 million, or 10 cents per share, in the July-September quarter. That compares with profit of $71 million, or 24 cents per share, in the third quarter of 2011.
Revenue fell 3.3 percent, to $490 million.
E-Traded added new brokerage accounts at a faster pace _ 18,000 in the most recent quarter, compared with 13,000 a year earlier. And customers put $1.9 billion into new brokerage assets.
But trading volume shrank, in what the company described as "lackluster" involvement by investors in the securities industry.
E-Trade's 129,000 daily average revenue trades in the third quarter were down 22 percent from a year ago. Commissions, fees and service charges, and principal transactions fell to $153 million from $181 million in last year's third quarter.
E-Trade shares fell 12 cents to close at $9.42 in regular trading. They lost another 46 cents, or 4.9 percent, to $8.96 in after-hours trading.