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UPDATE 1-TD Ameritrade profit rises 40 pct as trading fees jump

Tuesday, 29 Oct 2013 | 8:48 AM ET

* Fourth-qtr net income $0.36 vs est. $0.35

* Revenue rises 10 percent to $709 million

* Average daily client trades rise 14 percent

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

* Raises div to 12 cents from 9, declares special div of 50 cents

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

With the Federal Reserve unlikely to scale back its bond-buying stimulus program anytime soon, the U.S. stock market has hit record highs, boosting trading activity and helping brokerages such as TD Ameritrade and Charles Schwab Corp .

TD Ameritrade, whose biggest shareholder is Canada's Toronto-Dominion Bank with a 42 percent stake, reported a 14 percent rise in average client trades per day for the quarter ended Sept. 30.

Commissions and transaction fees rose 20 percent to $306 million, while net interest revenue rose 3 percent as the brokerage attracted about $10 billion of net new assets.

The company boosted its quarterly dividend to 12 cents per share from 9 cents and declared a special dividend of 50 cents per share.

TD Ameritrade also forecast full-year 2014 earnings of $1.20 to $1.40 per share. Analysts, on average, have forecast earnings of $1.21 per share, according to Thomson Reuters I/B/E/S.

Net income rose to $200 million, or 36 cents per share, in the quarter, from $143 million, or 26 cents per share, a year earlier.

Analysts were expecting earnings of 35 cents per share.

Net revenue rose about 10 percent to $709 million.

TD Ameritrade shares were up marginally before the bell after closing at $27.93 on the New York Stock Exchange on Monday.

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