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E TRADE FINANCIAL CORP

No Longer Reporting

The company has not filed an annual or quarterly report since its Q2 FY2020 10-Q, filed Aug 5, 2020. Its latest SEC filing is a 15-12B from Oct 13, 2020.

The sections below describe the company as of the FY2019 annual report.

What Did They Do?

Provides brokerage, banking and investment services to individual traders and investors, companies and employees using stock plans, and registered investment advisers.

How Did They Make Money?

Most money comes from the difference between interest earned on securities, customer margin loans and other assets and interest paid on deposits and borrowings. It also earns trading commissions and fees, payments from market centers for routed orders, fees tied to customer cash and managed assets, and fees for stock-plan software and services.

revenue

Who Were Their Customers?

Individual traders and investors use web, mobile and active-trading platforms, with phone, email and in-person support; companies use stock-plan and employee-benefit services, and registered investment advisers use custody services.

Did Revenues Turn Into Profits?

Yes. It kept 33 cents of every revenue dollar as net income in .

Net income,
33% of revenue
▼ −9% vs ($1.1B, 37%)

How Were They Changing?

Since the FY2019 annual report
Latest quarter: Q2 FY2020, the three months to Jun 30, 2020
Revenue
▲ +5%
vs $685M in Q2 FY2019
Net income
▼ −11%
vs $219M in Q2 FY2019
  • Oct 2, 2020 Morgan Stanley completed its acquisition of E*TRADE The transaction was an all-stock acquisition.
  • Feb 21, 2020 E*TRADE agreed to be acquired by Morgan Stanley The agreement provided for E*TRADE to become a wholly owned Morgan Stanley subsidiary.

Grew. Revenue grew 2.1x in 4 years, from $1.4B in to $2.9B in , about 20% a year.

Broader institutional offerings The earlier report centered on individual retail brokerage and described corporate services as equity-compensation plan software and services. The latest report also serves independent investment advisers with custody services and offers student-loan and financial-wellness benefits for corporate clients.

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