E*Trade COO Jarrett Lilien discussed asset and account growth on his company's October 19th conference call. Extracts:
In retail, we continue to benefit from our focus on account quality and efforts to deepen engagement across our customer base. In the third quarter, assets per customer increased 25% over the year-ago period, including a 10% increase in cash per customer. This increase was driven in part by our initiative to market and focus on assets and cash management solutions, and rewarding customers with greater value for holding larger asset balances at E*TRADE Financial…
…total customer cash in the system increased by $800 million in the quarter to a record $19.5 billion. When we talk about total cash in the system, this includes cash at the broker/dealer, as well as total bank deposits, including CDs, transaction accounts, and the Sweep account…
Our focus on the combination of value pricing, functionality, and service is delivering growth in our retail customer base. In the third quarter, we generated nearly 49,000 net new retail accounts, nearly double the growth we saw in the second quarter, and a significant reversal from the net account attrition we experienced a year ago. This, of course, does not include any impact from Harris Direct, which didn't get closed until after the quarter end.
(Quotes are from the CCBN StreetEvents transcript.)
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