E*Trade surprisingly posts positive quarterly profit results

E*Trade Financial has astonished analysts, having published first quarterly profit for three years. Analysts had previously expected another loss and sending shares up by 7%.  

E*Trade, that was hurt significantly by the US mortgage crisis, posted second quarter net income of $35 million, or 12 cents a share, compared to a net loss of $143 million, or $2.16 a share, in Q2 2009.

Net revenue was actually down, at $534 million, compared to $621 million for the three months the previous year.

Nevertheless, online brokerage only needed to set aside $166 million for loan losses, down from $405 million in Q2 2009 and $268 million in the last quarter. Net charge-offs were $225 million, down from $386.4 million the previous year.