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

Advisor moves: LPL adds $425M Evermark Investment Partners, $300M Merril Lynch group hops to Ameriprise
Advisor moves: LPL adds $425M Evermark Investment Partners, $300M Merril Lynch group hops to Ameriprise

LPL's latest addition, a San Diego team defecting from RBC, represents a milestone for the broker-dealer giant's Strategic Wealth model for wirehouse breakaways.

Senate tax bill stalls as hardliners balk at changes
Senate tax bill stalls as hardliners balk at changes

The new legislative proposal, which includes more aggressive cuts to Medicaid and a lower SALT cap, threatens a goal of passing President Trump's tax-cut legislation by July 4.

Osaic snaps up $13.5B CW Advisors
Osaic snaps up $13.5B CW Advisors

The deal for the Audax-backed RIA based in Boston gives Osaic a strategic foothold to attract more advisors and clients across the wealth spectrum.

Senate wants changes to Trump’s tax bill; here’s what’s expected
Senate wants changes to Trump’s tax bill; here’s what’s expected

‘Revenge tax’ on foreign investors could be scrapped in new version.

CFTC’s regulatory pioneer Bagley dies aged 96
CFTC’s regulatory pioneer Bagley dies aged 96

Veteran legislator helped set the standard for derivatives regulation.

SPONSORED RILAs bring stability, growth during volatile markets

Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.

SPONSORED Beyond the dashboard: Making wealth tech human

How intelliflo aims to solve advisors' top tech headaches—without sacrificing the personal touch clients crave