Earnings: Ameritrade, Blackrock, PNC, BonY

TD Ameritrade’s net income increased 65% on client assets and greater trading activity.
JAN 17, 2008
TD Ameritrade Holding Corp. and Blackrock Inc. had stellar fourth quarters, while PNC Financial Services Group Inc. and Bank of New York Mellon Corp. profits fell. TD Ameritrade’s net income increased 65% on client assets and greater trading activity. The Omaha, Neb.-based brokerage company said net income totaled $240.8 million, or 40 cents per share, up from $145.6 million, or 24 cents per share, in the year-ago period. The brokerage firm attributed the increase to a 10% increase in asset balances, a 30% increase in fee-based balances and a 35% increase in daily client trades. BlackRock said fourth-quarter earnings jumped 90% on strong demand for its advisory and alternative investment services. The New York-based money manager’s net income rose to $322.4 million, or $2.43 per share, up from $169.4 million, or $1.28 per share, in the year-ago period. The results include a one-cent-per-share integration charge associated with the company's September 2006 acquisition of the operations of Merrill Lynch Investment Managers. Investment advisory fees increased 34% to $1.159 billion and assets under management totaled rose 21% to $1.357 trillion. PNC posted a net-income loss of 53%, a result of credit losses and the lower value of commercial mortgages in its portfolio. The Pittsburgh-based bank said net income fell to $178 million, or 52 cents per share, down from $376 million, or $1.27 per share, during the year-ago period. The results included a 24 cent loss in obligations related to the company's investment in BlackRock Inc. and a 16 cent charge related to the settlement of a $2.25 billion lawsuit between Visa and American Express Co., and 15 cents per share in integration costs. Assets under management rose 35% to $73 billion as of Dec. 31. Bank of New York Mellon said net income fell 68% in the fourth quarter, due to losses from a collateralized debt obligations and a conduit that it sponsors. The New York-based bank said net income fell to $520 million, or 45 cents, down from $1.63 billion, or $2.27 per share, during the year-ago period. The company said its results included a charge of $180 million to restructure and consolidate assets of conduit it sponsors called Three Rivers Funding Corp. BonY Mellon also said it took a $118 million loss due to write-down of collateralized debt obligations. Assets under management totaled $1.1 trillion, representing an 11% increase compared to the previous year. Fees collected from asset and wealth management grew 14%, asset servicing fees increased 36%, while clearing and execution fees rose 21%.

Latest News

Clients are using AI to challenge financial advice, Pacific Life survey finds
Clients are using AI to challenge financial advice, Pacific Life survey finds

Advisors must navigate misinformation and generational expectations as technology reshapes client relationships.

Jailed Florida broker, facing sexual battery charge, ghosts FINRA
Jailed Florida broker, facing sexual battery charge, ghosts FINRA

The regulator has been trying to reach imprisoned advisor Jason Foley.

Microsoft's AI workforce reset targets 27% of global staff in new buyout
Microsoft's AI workforce reset targets 27% of global staff in new buyout

Magnificent 7 firm continues to ‘right size’ workforce in AI-related shift also seen in financial services.

HSA investing gap creates retirement planning risk for clients
HSA investing gap creates retirement planning risk for clients

Healthcare inflation running at 280% of CPI - and most HSA holders are sitting in cash.

High-growth retirement plan advisors gain AUM faster, BlackRock data shows
High-growth retirement plan advisors gain AUM faster, BlackRock data shows

New research identifies the practice habits driving 121% DC AUM growth among the industry's top performers.

SPONSORED Built on insurance experience to deliver on long-term promises

Knighthead Life entered the market with a competitive MYGA. A strong launch earned advisor confidence and paved the way for FIAs.

SPONSORED In the Age of AI, Trust Becomes the Advisor's Greatest Asset

As AI makes financial information more accessible than ever, Lana Hock explains why human judgment, trust, and empathy remain the qualities clients value most in a financial advisor