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Earnings Around Wall Street: You Do The Math

November 1, 2010

Today, we report on or recap Q3 earnings reports from Wall Street and beyond:  (i) Ameriprise Financial;  (ii) TD Ameritrade;  (iii) E*Trade Financial;  (iv) BNY Mellon;  (v) Nomura Holdings.

    1Ameriprise Financial.   AMP reported Q3 earnings of $344mn, a 33% jump from one year ago's $260mn.  Total net revenues for the Minneapolis-based firm rose 26% to $2.45bn.  Results reportedly improved with strong performance at the advisory and wealth management buinsess.  Total client assets increased 9% to $313bn.   [Reuters, 10/27]

    2.  TD Ameritrade.  AMTD reported worse-than-expected Q4 earnings of $114mn, down from $157mn a year ago.  Total net revenues were down 7% at $609mn.  Depressed trading volumes and low interest rates led to the decline.  The company faces twin pain - slow trading and low interest rates, which hamper its ability to earn fees on money market funds.  Nevertheless, AMTD reported its first dividend - 5 cents a share.   [Reuters, 10/26]

    3.  E*Trade Financial.   ETFD reported its 2nd straight quarterly profit, with $8mnm or 3 cents a share, versus a year ago loss of $855mn.  Daily average revenue trades declined 30% from a year ago, though, because brokerage clients have reduced trading activity since the Flash Crash of May 2010.  Net new brokerage accounts totaled 7,000 for the quarter, and E*Trade ended the quarter with $159 billion in total customer assets.  [Financial Planning, 10/21]

    4.  BNY Mellon.   BK reported Q3 profit of $622mn, vs. last year's loss of $2.5bn.  Assets under custody and under management increased during the quarter - by 12% and 9%, respectively.  Trading and securities lending remained the worst performing businesses, with sharp drops.  [Morningstar, 10/19]

    5.  Nomura Holdings.   Quarterly profit dropped 96% from a year ago, to 1.1 billion yen, in part reflecting the company's costly expansion in the U.S.  Nomura CFO Masafumi Nakada reiterated the bank's plans to join the "top tier" in the industry, but denied any intention of raising new money.  Nomura bought the international operations of Lehman Brothers - which gave it a stronger footing in global investment banking, but left it short in the U.S. [NYT Dealbook, Morningstar, 10/29]