TD Ameritrade Holding Corporation (Nasdaq: AMTD) has released its financial results earlier today for the third quarter of its fiscal year 2020, revealing a solid uptick in net new client assets.
During the third quarter, which ended on the 30th of June, 2020, TD Ameritrade achieved net new client assets of $33 billion. This represents an uptick of 11 percent against the previous year. Breaking this down, 61 percent of the $33 billion is retail assets, and 39 percent are institutional.
In the third quarter of fiscal 2020, the US-headquartered broker has recorded new funded retail accounts of 661,000 and daily average revenue trades (DARTs) of 3.4 million, the statement from the company said.
Total client assets by the end of the third quarter were $1.5 trillion, and net revenues came in at $1.6 billion across the three month period. Pre-tax GAAP income was $753 million, or 47 percent of net revenues.
TD Ameritrade achieves “exceptional results”
Commenting on the results, Steve Boyle, interim president and chief executive officer, said in the statement: “Our results were exceptional. We’re very pleased with the growth in clients and assets, which is indicative of the strength of our value proposition in an ‘all else equal’ marketplace.
“Earnings increased year-over-year despite the move to zero for most trades and zero interest rates. We again delivered double-digit net new client asset growth reflecting the appeal of our offerings to both retail and institutional clients. In the quarter, we launched thinkorswim Web with access to equity and derivative trading from any modern internet browser, fulfilling clients’ desire to access our award-winning trading technology with a fully synchronized experience on any device, wherever they may be."
“With one quarter still to go, we are approaching 2 million new funded accounts fiscal year-to-date, breaking our previous record of 1.3 million new funded accounts in fiscal year 2018.”
