Boston, MA 10/25/2013 (wallstreetpr) – E TRADE Financial Corporation (NASDAQ:ETFC) announced yesterday the results for its 3Q that ended on September 30, 2013. The company reported the net income of $0.16 per share or $47 million. This number can be compared with the last quarter when there was a net loss of $0.19 loss per share or of $54 million. Also in the third quarter of 2012, there was a net loss of $0.10 loss per share or of $29 million.
The net losses in the prior periods were driven primarily by $50 million in charge-offs that was related to untimely reporting of borrower bankruptcies in the last year quarter and also by a $142 million impairment to goodwill in the 2Q. The company reported a total net revenue of $417 million for 3Q’13, which was $440 million in the prior quarter. Also, the total net revenue was down from $490 million in 3Q’12.
The company also announced yesterday that it has entered into an agreement to sell G1 Execution Services, its market making business, to Susquehanna International Group, LLP. Its market making business would be sold for $75 million. The transaction is subjected to approvals and other closing conditions and is expected to close in 3 to 6 months. In addition to this, the company will enter into an order flow arrangement in which E*TRADE, over the next 5 years, agrees to sell 70% of its customer equity order to G1 Execution Services. This is also subjected to best execution standards.
The Chief Executive Officer of the company, Paul Idzik, said that their core business gave good performance in the 3rd quarter as customers continued to engage. He said that their results were affected in a better way from the ongoing improvement to the risk profile of the company that contributed to their ability to distribute capital to the Parent this quarter from the bank- an important milestone for E*TRADE.
