Earnings: Ameriprise, E*Trade

Ameriprise posted strong returns, while E*Trade took a larger-than-expected plunge into negative territory.
JAN 25, 2008
By  Bloomberg
Ameriprise Financial Inc. posted strong returns in the fourth quarter, while E*Trade Financial Corp. took a larger-than-expected plunge into negative territory. Ameriprise said fourth-quarter earnings rose 49% due to growth in its high-net-wealth client business. The Minneapolis-based brokerage and asset management firm said net income grew to $255 million, or $1.08 per share, up from $171 million, or 69 cents per share during the year-ago period. The earnings excluded non-recurring investment gains and costs of its 2005 spin-off from American Express Co., resulting in adjusted earnings per share of $1.16. The company said that management and financial advice fees increased 25%, while the number of mass-affluent and affluent client assets increased 10% from same quarter in 2006. E*Trade recorded a $2.2 billion charge related to the sale of its asset-backed securities portfolio. The New York-based discount brokerage recorded a fourth quarter loss of $1.71 billion, or $3.98 per share, down from net income of $177 million, or 40 cents per share a year ago. During the quarter, E*Trade received a $2.55 billion cash infusion from the Chicago-based Citadel Investment Group for about $800 million. Total consumer assets fell to $190 billion from $218 billion in the third-quarter and $194.9 billion during the year-ago period. On a positive note for the firm, daily average revenue-producing trades increased 38% to 214,066.

Latest News

The 2025 InvestmentNews Awards Excellence Awardees revealed
The 2025 InvestmentNews Awards Excellence Awardees revealed

From outstanding individuals to innovative organizations, find out who made the final shortlist for top honors at the IN awards, now in its second year.

Top RIA Cresset warns of 'inevitable' recession amid tariff uncertainty
Top RIA Cresset warns of 'inevitable' recession amid tariff uncertainty

Cresset's Susie Cranston is expecting an economic recession, but says her $65 billion RIA sees "great opportunity" to keep investing in a down market.

Edward Jones joins the crowd to sell more alternative investments
Edward Jones joins the crowd to sell more alternative investments

“There’s a big pull to alternative investments right now because of volatility of the stock market,” Kevin Gannon, CEO of Robert A. Stanger & Co., said.

Record RIA M&A activity marks strong start to 2025
Record RIA M&A activity marks strong start to 2025

Sellers shift focus: It's not about succession anymore.

IB+ Data Hub offers strategic edge for U.S. wealth advisors and RIAs advising business clients
IB+ Data Hub offers strategic edge for U.S. wealth advisors and RIAs advising business clients

Platform being adopted by independent-minded advisors who see insurance as a core pillar of their business.

SPONSORED Compliance in real time: Technology's expanding role in RIA oversight

RIAs face rising regulatory pressure in 2025. Forward-looking firms are responding with embedded technology, not more paperwork.

SPONSORED Advisory firms confront crossroads amid historic wealth transfer

As inheritances are set to reshape client portfolios and next-gen heirs demand digital-first experiences, firms are retooling their wealth tech stacks and succession models in real time.