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UPDATES TOE*TRADE’S CUSTOMERACTIVITY METRICSApril 2019 2019 E*TRADE Financial Corporation. All rights reserved.This presentation contains confidential information and maynot be disclosed without E*TRADE Financial Corporation’swritten permission.
Realignment of customer activity metrics We have enhanced the structure of our reporting to better align our customer activity metrics to our customerchannels. We updated our account and asset roll-ups by: combining brokerage and banking under the retail heading distinguishing advisor services as its own channel renaming stock plan to corporate services and providing a breakout of vested balances We have refined our presentation of trades to capture only commissionable trades to more closely align tocommissions revenue. This has impacted our presentation of daily average revenue trades (DARTs), derivativeDARTs %, and average commission per trade. Commissionable trades exclude trades related to no transaction feemutual funds and commission-free ETFs, rebalancing trades associated with our managed products, and other noncommissionable trades We aligned the minimum threshold for gross new and end of period retail accounts to 25 and refined the definitionfor gross new retail accounts sourced from corporate services to include only those which maintain a minimumbalance of 25 at the end of the reporting period or trade within the reporting period We have released a historical quarterly metrics spreadsheet posted to about.etrade.com with our customer activitymetrics under both the new and prior structure and definitions, including three years of historical quarterly data Along with the first quarter earnings release we will update the customer activity metrics spreadsheets to include Q1customer activity metrics under both the new and prior format. Going forward we plan to only show metrics under thenew format2
Trading: refining the presentation of tradesWe have refined our presentation of trades to capture only commissionable trades to more closely correspond tocommissions revenue. This has impacted our presentation of daily average revenue trades (DARTs), derivative DARTs%, and average commission per trade. Commissionable trades exclude trades related to no transaction fee mutual fundsand commission-free ETFs, rebalancing trades associated with our managed products, and other non-commissionabletradesOld3New
Trading: refining the presentation of tradesOld (Q4’18)New (Q4’18)DARTs296KDARTs281KDerivative DARTs93KDerivative DARTs92KDerivative DARTs %31%Derivative DARTs %33%Total trades (MM)18.3Commissionabletrades (MM)17.4Average commissionper trade 6.66Average commissionper trade 7.00In April of 2019, the presentation of trades was refined to capture only commissionable trades to more closely correspond to commissions revenue. This impacts thepresentation of daily average revenue trades (DARTs), derivative DARTs %, and average commission per trade. Commissionable trades exclude trades related to notransaction fee mutual funds and commission-free ETFs, rebalancing trades associated with our managed products, and other non-commissionable trades.4
Realigning the roll-up of accountsWe updated the alignment of our account roll-ups, combining retail brokerage and banking accounts under retail, anddistinguishing advisor services as its own channel. We aligned the minimum threshold for gross new and end of periodretail accounts at 25 and refined the definition for gross new retail accounts sourced from corporate services to includeonly those which maintain a minimum balance of 25 at the end of the reporting period or trade within the reporting periodOld5New
Gross new accounts: realignment, account thresholdsNew (Q4’18)Old (Q4’18)Gross new bankingaccounts13KGross new brokerageaccounts1,054KGross new banking accounts 13KGross new retailaccounts1,053KRetail brokerage gross new accounts 1,040KGross new advisor services accounts 8KGross new stock planaccounts76KGross new corporateservices accounts72KGross new accounts1,143KGross new accounts1,133KIn April of 2019, the Company aligned the minimum threshold for gross new and end of period retail accounts at 256Gross new advisorservices accounts8K
End of period accounts: realignment, account thresholdsNew (Q4’18)Old (Q4’18)End of period bankingaccounts298KEnd of periodbrokerage accounts4,897KBanking accounts 262KEnd of period retailaccounts5,008KRetail brokerage accounts 4,746KAdvisor services accounts 151KEnd of period stockplan accounts1,764KEnd of periodcorporate servicesaccounts1,764KEnd of periodaccounts6,959KEnd of periodaccounts6,923KIn April of 2019, the Company aligned the minimum threshold for gross new and end of period retail accounts at 257End of period advisorservices accounts151K
Net new accounts: realignment, account thresholdsNew (Q4’18)Old (Q4’18)Net new bankingaccounts6KNet new brokerageaccounts947KNet new banking accounts 6KNet new retailaccounts952KRetail brokerage net new accounts 946KNet new advisor services accounts 1KNet new stock planaccounts28KNet new corporateservices accounts28KNet new accounts981KNet new accounts981KIn April of 2019, the Company aligned the minimum threshold for gross new and end of period retail accounts at 258Net new advisorservices accounts1K
Realigning the roll-up of net new assetsWe updated the alignment of our net new asset roll-ups, combining retail brokerage and banking under retail, anddistinguishing advisor services as its own channelOld9New
Net new assets: realignmentNew (Q4’18)Old (Q4’18)Net new bankingassets 0.9BNet new banking assets 0.9BNet new retail assets 19.8BNet new brokerageassets 19.1BNet new retail brokerage assets 18.9BNet new advisor service assets 0.2BNet new assets 20B10Net new advisorservice assets 0.2BNet new assets 20B
Total customer assets: aligning by channelWe separated vested corporate services assets from security holdings, and consolidated sweep deposits, customercash held by third parties, customer payables, and banking assets in a single cash and deposits line. We still include adetailed breakout of cash in a new endnoteOldNew**New endnote11
Total customer assets: aligning by channelNew (Q4’18)Old (Q4’18)Security holdings 317.5BUnexercised stock plan holdings 36.4BSecurity holdings 242.0BCorporate service vested equity holdings 75.5BSecurity holdings 242.0BCorporate servicesvested assets 111.9BSavings, checking and other bankingassets - 6.0BSweep deposits 39.3BCustomer cash held by third parties 4.8BCustomer payables (cash) 10.1B12Cash and deposits 60.2BRetail, advisor servicesand corporate servicesvested assets 414.1BTotal customer assets 414.1BCorporate servicesunvested holdings 94.4BStock plan customer holdings (unvested) 94.4BTotal customer assets 508.5B
Addition of asset roll-upsWe added a breakdown of fee-based assets, and asset roll-ups across the retail, advisor services, and corporateservices channels.Added13
stock plan . to . corporate services. . We have released a historical quarterly metrics spreadsheet posted to about.etrade.com with our customer activity metrics under both the new and prior structure and defini
