TD Ameritrade Holding Corporation (Nasdaq:AMTD) has released results for fiscal year 2016. The Company generated record earnings and a record $1.58 per diluted share, driven by strong organic growth.
The Company’s results for the fiscal year ended Sept. 30, 2016 include the following:
- Record $1.58 in earnings per diluted share, on net income of $842 million
- Net new client assets of approximately $60 billion, a growth rate of 9 percent
- Average client trades per day of approximately 463,000, up slightly year over year
- Record net revenues of $3.3 billion, 57 percent of which were asset-based
- Investment product fee revenue of $374 million, up 12 percent year over year
- Pre-tax income of $1.3 billion, or 38 percent of net revenues
- EBITDA(2) of $1.5 billion, or 45 percent of net revenues
- Interest rate-sensitive assets(3) of $119 billion, up 10 percent year over year
- Record client assets of approximately $774 billion, up 16 percent year over year
“We’re pleased to report another year of strong growth across all our businesses” said Tim Hockey, TD Ameritrade president and chief executive officer. “Strong asset-gathering and growth in investment products helped us deliver higher earnings despite a challenging rate environment. We averaged 463,000 trades per day and gathered $60 billion in net new client assets, a 9 percent growth rate. We end 2016 with strong momentum and plans firmly in place to continue building long-term earnings power.”
“We have a solid competitive position and a strong, healthy culture. Our organic growth strategy will not change, but how we execute that strategy will continue to evolve,” Hockey continued. “Over the next 12 months we will continue driving greater organizational efficiency and invest in initiatives that will help us deliver a superior client experience that address the needs of today’s investor — and tomorrow’s. An intensified commitment to agility and increasing our speed to market will be paramount to our success and a key focus for our management team going forward.”
“Fiscal 2016 was a good year with record earnings of $1.58 per diluted share, despite the persistence of near-zero interest rates, and our capital-light model allowed us to return more than $700 million to our shareholders through dividends and share buybacks. Building our long-term earnings power remains our primary focus, and with interest rate-sensitive assets up 10 percent to $119 billion, we remain well-positioned for a rising-rate environment,” said Steve Boyle, executive vice president and chief financial officer. “Looking ahead, we expect trading and organic growth to drive fiscal 2017 results, and we’ll remain disciplined on managing expenses while generating savings that can be invested in initiatives to fuel future growth.”
Fourth Quarter 2016 Results
TD Ameritrade also released its results for the quarter ended Sept. 30, 2016, which include the following:
- Net income of $185 million, or $0.35 per diluted share, down 13 percent year over year
- Net new client assets of approximately $15 billion
- Average client trades per day of approximately 444,000, down 7 percent year over year
- Net revenues of $829 million, 58 percent of which were asset-based
- Investment product fee revenue of $98 million, up 20 percent year over year
- Pre-tax income of $270 million, or 33 percent of net revenues
- EBITDA(2) of $327 million, or 39 percent of net revenues
- Return on average stockholders’ equity (annualized) of 15 percent
During the 2016 fiscal year, the Company paid $362 million, in cash dividends, which included four quarterly dividends of $0.17 per share. The Company also repurchased approximately 12 million shares of its common stock.
The Company has declared an $0.18 per share quarterly cash dividend, an increase of 6 percent year-over-year, payable on Nov. 22, 2016 to all holders of record of common stock as of Nov. 8, 2016.
Fiscal 2017 Outlook
The Company has also released its outlook for the 2017 fiscal year, which reflects expected earnings of $1.50 to $1.80 per diluted share for its 2017 fiscal year.