TD Ameritrade topped analyst estimates and more than doubled profits in the third quarter. It reported net income of $454 million, or $0.92 per share, vs. $211 million, or $0.39 per share.
Net revenues were about $1.4 billion, up from $983 million a year ago. Net new client assets were close to $24 billion and are growing about 8% per year. Meanwhile, its pre-tax profit margin was 43.6%
For the full fiscal year, net new client assets totaled nearly $92 billion, net revenues were $5.5 billion and ending client assets were about $1.3 trillion, up 16% from the prior fiscal year.
Speaking after the firm released its financial results, CEO Tim Hockey said: “Growth within the Institutional channel remains quite impressive. We saw growth coming from all advisor segments – new, existing and breakaway, with activity from new breakaway brokers coming in particularly strong.”
The firm plans to continue to attract RIA clients via technology and other measures.
“The more we can automate, the more time advisors can spend with their clients, and the more resources we can devote to helping advisors run more successful businesses,” Hockey explained.
In the period ending Sept. 30, the firm “reached the first milestone on our journey to leverage artificial intelligence, launching an internal virtual assistant to help our Associates on the front lines more quickly and effectively address advisor or end-client questions and concerns about new account opening,” the CEO said.
TD also “soft-launched a new website for advisor end-clients, making it easier to self-serve key information about their accounts, while laying the foundation for efforts to unify the advisor and end-client digital experience,” he added.
Speaking with Bloomberg Business News on Tuesday, Hockey said the firm is “quite comfortable” with not buying E*Trade, which plans to stay independent.