TD Ameritrade (NASDAQ: AMTD) reported Q3 EPS of $1.09, $0.24 better than the analyst estimate of $0.85. Revenue for the quarter came in at $1.59 billion versus the consensus estimate of $1.41 billion.

• Net new client assets of $33 billion, split 61 percent retail and 39 percent institutional, an annualized growth rate of 11 percent
• Record gross new funded retail accounts of 661,000
• Record daily average revenue trades, DARTs, of 3.4 million
• Total client assets of $1.5 trillion
• Net revenues of $1.6 billion
• Pre-tax GAAP income of $753 million, or 47 percent of net revenues
• $1.05 in GAAP earnings per diluted share, on net income of $569 million
• $1.09 in Non-GAAP earnings per diluted share(1)

Steve Boyle, interim president and chief executive officer, commented, “Our results were exceptional. We’re very pleased with the growth in clients and assets which is indicative of the strength of our value proposition in an ‘all else equal’ marketplace. Earnings increased year-over-year despite the move to zero for most trades and zero interest rates. We again delivered double-digit net new client asset growth reflecting the appeal of our offerings to both retail and institutional clients. In the quarter, we launched thinkorswim Web with access to equity and derivative trading from any modern internet browser, fulfilling clients’ desire to access our award-winning trading technology with a fully synchronized experience on any device, wherever they may be. With one quarter still to go, we are approaching 2 million new funded accounts fiscal year-to-date, breaking our previous record of 1.3 million new funded accounts in fiscal year 2018. Retail continued its strong momentum as new and existing clients rewarded us with increased business and satisfaction scores. On the institutional side of the business, our new account pipeline slowed in the quarter as expected as the merger closing nears, while client retention remained strong along with net advocate and client experience scores.”

Boyle added, “Unprecedented trading volume continued in the third quarter averaging a record 3.4 million DARTs, more than four times last year’s level and up 62 percent from the prior quarter. Zero commissions and sustained volatility drove new and existing client engagement, leading to record trading levels. This quarter includes the top 15 trading volume days in our firm’s history with 10 of these days in June and a new all-time high of more than 5 million DARTs on June 11. Client engagement continues to accelerate this month, with margin balances increasing to $22.9 billion and trading remaining strong, averaging 3.8 million DARTs as of July 20. We also helped our clients execute four times the number of shares and more than double the number of options contracts versus a year ago. These remarkable accomplishments took all of our 10,000 employees working together to meet client needs amid record volumes. We are actively recruiting for more than 1,000 new full-time client services positions in response to sustained elevated levels of growth and client engagement.”

Boyle continued, “One of the things that makes our culture so special is our employees’ eagerness to give back to their communities and to express their support for causes that matter to them. It’s what drove our decision in the quarter to support charities addressing two very pressing issues: a massive health crisis and longstanding racial injustice. We were proud to donate $1 million to the CDC Foundation’s Combat Coronavirus Fund; $500,000 to Feeding America’s Covid-19 Response Fund; and $500,000 to the National Urban League. We were even prouder of how our employees stepped up when we announced we would double their usual 1:1 company match to the charities of their choice. In just two months, our 2:1 employee match campaign raised more than $1 million to be disbursed across more than 850 unique charities and causes.”

Boyle concluded, “During our June 4 virtual special meeting of shareholders, TD Ameritrade shareholders overwhelmingly approved the merger agreement with Schwab, with more than 99 percent of the votes cast being voted in favor of the proposal. The shareholder vote came on the heels of the June 3 announcement that the Antitrust Division of the United States Department of Justice (DOJ) had decided to close its investigation of the proposed merger. Integration planning is in full swing, and we still expect the transaction will close in the second half of this calendar year. We remain committed to delivering a strong finish to our fiscal year, taking care of our clients and employees, and ensuring a smooth transition to Schwab.”

For earnings history and earnings-related data on TD Ameritrade (AMTD) click here.