CEO Fred Tomczyk of TD Ameritrade.

TD Ameritrade (AMTD) said Wednesday that its net income in the quarter ended March 31 grew nearly 35% year over year, hitting $194 million, or $0.35 per share, beating estimates.

Revenues improved nearly 20% over the past 12 months to $812 million, as net new client assets hit $12.2 billion, an 8% annualized growth rate. Still, net assets for the company’s fiscal second quarter fell below those of both the earlier period, $14.5 billion, and the same period of 2013, $12.9 billion.

The brokerage firm, though, boosted average daily client trades to about 492,000 in the most-recent quarter, up from 414,000 in the prior quarter and 378,000 in the year-ago period. 

TD Ameritrade’s earnings for the second quarter were up 35% year-over-year, driven by record trades per day as retail investor engagement continued to improve. In fact, our quarterly activity rate was the highest we’ve seen in a decade,” said President and CEO Fred Tomczyk, in a press release.

“Additionally, we continue to see strong asset gathering and demand for our guidance-based offerings,” Tomczyk said. “We remain focused on giving our clients access to a wide range of products, tools and education to help them pursue their goals.”

Overall client assets were $617 billion as of March 31, up 19% from last year’s $517 billion.

Commissions and transaction fees for the most recent period totaled $374 million vs. $328 million in the earlier quarter and $287 million a year earlier.  Investment-product fees jumped 21% from last year to $75 million.

Pretax profit margins, though, fell slightly from the prior period to 39% from 40%, but improved from 34% last year.  

Check out ThinkAdvisor’s 2014 Q1 Earnings Calendar for the Finance Sector.