E*Trade Earnings Rise on Fee Revenue, Tax Benefit

E*Trade Financial Corp. posted higher earnings Thursday on increased fee revenue and the realization of a tax benefit.

Excluding the tax benefit related to finalizing an audit with the Internal Revenue Service, E*Trade reported net income of $72 million, or 25 cents per share, up from $69 million from the same period a year ago.

With the tax, the online brokerage firm reported earnings of $292 million, or 99 cents a share. Revenue rose to $445 million from $438 million a year earlier. Analysts surveyed in a Thomson Reuters poll had projected per-share earnings of 27 cents on revenue of $447 million.

Lower trading volume pulled down daily average revenue trades to 149,000, from 155,000 a year earlier. Commissions, fees and service charges and other revenue in the second quarter increased 2% to $167 million.

The company added 25,000 net new accounts during the quarter, down from 33,000 accounts over the same period last year, bringing total customer assets to $302 billion, an increase from $281 billion a year ago.

E*Trade's results come after rival TD Ameritrade Holding Corp. on Tuesday said its profit rose on the back of an unexpected boost in trading activity. Rival Charles Schwab Corp. said its earnings grew from higher fees and interest revenue.

Write to Daniel Huang at [e-mail]

Access Investor Kit for Citigroup, Inc.

Visit http://www.companyspotlight.com/partner?cp_code=P479&isin=US1729674242

Access Investor Kit for E*TRADE Financial Corp.

Visit http://www.companyspotlight.com/partner?cp_code=P479&isin=US2692464017

Access Investor Kit for TD Ameritrade Holding Corp.

Visit http://www.companyspotlight.com/partner?cp_code=P479&isin=US87236Y1082

Subscribe to WSJ: http://online.wsj.com?mod=djnwires