E-Trade Financial Corp. (NASDAQ: ETFC) reported Wednesday that its loss narrowed in the first quarter due to improvements in its loan portfolio, according to Associated Press.
The company lost $47.8 million, or 2 cents per share, for the first three months of the year, compared with a loss of $232.7 million, or 41 cents per share, in the year-ago period.
The performance beat Wall Street expectations. On average, analysts polled by Thomson Reuters expected a loss of 3 cents per share.
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E-Trade said provisions for loan losses in the quarter were $268 million, down from $454 million in first quarter of 2009. The company's net charge-offs in the quarter were $288 million, an 11 percent drop from the year-ago period.
In the latest quarter, E-Trade said its loan portfolio shrunk by $1 billion from the prior quarter. About $700 million of that reduction was the result of prepayments or principal reductions.
The company's quarterly revenue was $536.5 million, up from $497.3 million a year ago. However, that increase was largely the result of lower operating interest expense.
Revenue from commissions fell 10 percent to $113.3 million and revenue from fees and service charges also decreased 10 percent to $42.2 million.
For the quarter, daily average revenue trades decreased 11 percent to 155,000. Total customer assets increased to $162 billion from $110 billion in the prior year.
E-Trade has also undergone several leadership changes in the past two years. The latest quarter included the appointment of new CEO Steven Freiberg, formerly of Citigroup (NYSE: C).
He replaced Robert Druskin, who had been acting as interim CEO since the end of last year. Prior to that, Donald Layton, a former JPMorgan Chase & Co. (NYSE: JPM) vice chairman, had been named to the top post in March 2008.
Shares of E-Trade rose 5 cents, or 2.8 percent, to close at $1.82.
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