TD Ameritrade Holding Corp. (AMTD) announced Tuesday that in its third quarter of fiscal 2012 it had net income of $153.8 million, or 28 cents per diluted share, on revenue of $667.25 million. That compares to the year-ago period when the company had net income of $157.39 million, or 27 cents a share, on net revenue of $684.7 million.
In announcing the earnings, TD Ameritrade President and CEO Fred Tomczyk noted that the company has “continued its organic growth momentum despite the difficult operating environment,” pointing to net new client assets of $9.7 billion in the quarter ended June 30, a 23% increase over the same period in the prior fiscal year. Fiscal year-to-date net new client assets rose at an annualized 11% to $30.7 billion, though net new client assets fell from the $10.8 billion recorded in the second quarter.
CFO Bill Gerber said in a statement that the results constituted a “strong quarter despite lower trading volumes and a difficult interest rate environment,” and pointed to a decline in expenses, saying “our disciplined approach to expense management and allocating resources prudently to support our growth will continue to be a priority.”
In an earnings conference call, Tomczyk spoke cautiously about prospects for an increase in trading activity, saying that within the current market and economic environment, it will “take some kind of event or action by our leaders to bring investors back into the market.”
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As for its RIA custody business, Pete Dorsey (right), TD Ameritrade Institutional’s managing director, reported that TDAI had added 120 breakaway brokers to its platform in the third quarter and 324 breakaways in the fiscal year to date, increases of nearly 50% and 23%, respectively, over the same periods in the prior year.