ETFC E TRADE Financial Corporation

E*TRADE Financial Corporation (NASDAQ: ETFC) today released its Monthly Activity Report for January 2016.

Daily Average Revenue Trades ("DARTs") for January were 175,346, a 19 percent increase from December and a one percent increase from the year-ago period. The Company added 29,666 gross new brokerage accounts in January and ended the month with approximately 3.2 million brokerage accounts — an increase of 4,815 from December.

Net new brokerage assets were $1.0 billion in the month. During the month, customer security holdings decreased by $13.4 billion, and brokerage-related cash decreased by $0.7 billion to $41.0 billion. Bank-related cash and deposits decreased $0.2 billion, ending the month at $5.3 billion. Customers were net buyers of approximately $1.2 billion in securities during the month.

Monthly Activity Data

          Jan-16 Dec-15 Jan-15 % Chg. M/M % Chg. Y/Y Trading days 19.0 21.5 20.0 N.M. N.M.   DARTs 175,346 147,688 172,944 18.7 % 1.4 %   Gross new brokerage accounts 29,666 27,472 30,990 8.0 % (4.3 )% Gross new stock plan accounts 25,145 32,174 28,201 (21.8 )% (10.8 )% Gross new banking accounts 377   337   344   11.9 % 9.6 % Total gross new accounts 55,188 59,983 59,535 (8.0 )% (7.3 )%   Net new brokerage accounts(1) 4,815 2,392 7,034 N.M. N.M. Net new stock plan accounts 11,395 16,667 9,772 N.M. N.M. Net new banking accounts (1,580 ) (1,524 ) (1,563 ) N.M. N.M. Net new accounts 14,630 17,535 15,243 N.M. N.M.   End of period brokerage accounts(1) 3,218,356 3,213,541 3,150,957 0.1 % 2.1 % End of period stock plan accounts 1,419,548 1,408,153 1,273,556 0.8 % 11.5 % End of period banking accounts 338,308   339,888   360,481   (0.5 )% (6.2 )% End of period total accounts 4,976,212 4,961,582 4,784,994 0.3 % 4.0 %  

Customer Assets ($B)

Security holdings $ 190.4 $ 203.8 $ 203.8 (6.6 )% (6.6 )% Customer payables (cash) 6.2 6.5 6.1 (4.6 )% 1.6 % Customer assets held by third parties(2) 11.0 11.2 15.2 (1.8 )% (27.6 )% Sweep deposits 23.8   24.0   18.7   (0.8 )% 27.3 % Brokerage customer assets 231.4   245.5   243.8   (5.7 )% (5.1 )% Unexercised stock plan customer holdings (vested) 29.2 36.9 37.2 (20.9 )% (21.5 )% Savings, checking and other banking customer assets 5.3   5.5   5.7   (3.6 )% (7.0 )% Total customer assets 265.9   287.9   286.7   (7.6 )% (7.3 )%   Net new brokerage assets ($B)(3) $ 1.0 $ 1.3 $ 0.6 N.M. N.M. Net new banking assets ($B)(3) (0.1 ) 0.1   (0.1 ) N.M. N.M. Net new customer assets ($B)(3) $ 0.9 $ 1.4 $ 0.5 N.M. N.M.   Brokerage related cash ($B) $ 41.0 $ 41.7 $ 40.0 (1.7 )% 2.5 % Other customer cash and deposits ($B) 5.3   5.5   5.7   (3.6 )% (7.0 )% Total customer cash and deposits ($B) $ 46.3 $ 47.2 $ 45.7 (1.9 )% 1.3 %   Customer net (buy) / sell activity ($B) $ (1.2 ) $ (0.4 ) $ (2.0 ) N.M. N.M. (1)   Net new brokerage accounts include the closure of 1,440 accounts in January 2016 related to the shutdown of the Company's Hong Kong and Singapore operations and 633 accounts in December 2015 related to the shutdown of the Company's global trading platform. (2) Customer assets held by third parties are held outside E*TRADE Financial and include money market funds and sweep deposit accounts at unaffiliated financial institutions. Customer assets held by third parties are not reflected in the Company's consolidated balance sheet and are not immediately available for liquidity purposes. However, the Company maintains the ability to transfer the majority of these customer assets to its balance sheet with notification to the third party institutions and customer consent, as appropriate. (3) Net new customer assets are total inflows to all new and existing customer accounts less total outflows from all closed and existing customer accounts. The net new brokerage assets and net new banking assets metrics treat asset flows between E*TRADE entities in the same manner as unrelated third party accounts.

Historical metrics and financials can be found on E*TRADE Financial's corporate website at https://about.etrade.com.

About E*TRADE Financial

E*TRADE Financial and its subsidiaries provide financial services including online brokerage and related banking products and services to retail investors. Specific business segments include Trading and Investing and Balance Sheet Management. Securities products and services are offered by E*TRADE Securities LLC (Member FINRA/SIPC). Bank products and services are offered by E*TRADE Bank, a Federal savings bank, Member FDIC, or its subsidiaries. More information is available at www.etrade.com.

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Important Notices

E*TRADE Financial, E*TRADE, and the E*TRADE logo are trademarks or registered trademarks of E*TRADE Financial Corporation. ETFC-G

© 2016 E*TRADE Financial Corporation. All rights reserved.

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E*TRADE Media RelationsThayer Fox, 646-521-4418thayer.fox@etrade.comorE*TRADE Investor RelationsBrett Goodman, 646-521-4406brett.goodman@etrade.com