E*TRADE FINANCIAL had less losses this year

This week E*TRADE FINANCIAL Corporation announced their results for the fourth quarter ended December 31, 2008. The report revealed a net loss of $276 million, or $0.50 per share, compared with a net loss of $1.7 billion, or $3.98 per share, in 2007. In addition the company also announced 2008 full year results that showed a net loss of $512 million or $1.00 per share ($1.58 loss per share from continuing operations), compared to a net loss of $1.4 billion or $3.40 per share in the previous year.

Commissions, fees, principal transactions and other revenue for the fourth quarter accounted for $224 million as compared with $213 million in the previous quarter. This reflected the increase in DARTs. The company reported a record 216,000 DARTs, an increase of 18% over the prior quarter. The fourth-quarter results also included net interest income of $274 million, down from $325 million in the third quarter. It was caused by abnormal spreads among federal funds, LIBOR and customer deposit rates, as well as a $3.7 billion reduction in margin and legacy portfolio loans.

Within the quarter E*TRADE FINANCIAL subscribed 97,000 net new accounts, including 77,000 brokerage accounts. At the end of the quarter the company reported a record 4.5 million retail customer accounts, which included a record 2.6 million brokerage accounts. Besides, customer net asset inflows were $3.5 billion during the quarter, as customers were net buyers of $1.9 billion in securities.