eTrade 2005 Annual Report Download - page 44

Table of Contents
Revenues
The components of net revenues and the resulting variances were as follows (dollars in thousands):
Variance
Year Ended December31,
2005 vs. 2004
2005
2004
2003
$ Amount
%
Revenues:
Commissions
$
458,834
$
431,638
$
422,709
$
27,196
6
%
Principal transactions
99,336
126,893
107,601
(27,557
)
(22
)
%
Gain on sales of loans and securities, net
98,858
140,718
247,654
(41,860
)
(30
)
%
Service charges and fees
135,314
97,575
110,058
37,739
39
%
Other revenues
94,419
89,077
86,514
5,342
6
%
Interest income
1,650,264
1,145,597
892,832
504,667
44
%
Interest expense
(779,164
)
(510,455
)
(486,129
)
(268,709
)
(53
)
%
Net interest income
871,100
635,142
406,703
235,958
37
%
Provision for loan losses
(54,016
)
(38,121
)
(38,523
)
(15,895
)
(42
)
%
Net interest income after provision for loan
losses
817,084
597,021
368,180
220,063
37
%
Total net revenues
$
1,703,845
$
1,482,922
$
1,342,716
$
220,923
15
%
The table below presents revenues as a percentage of total revenue. The primary driver of revenue has shifted from commissions to
net interest income after provision for loan losses. This shift is representative of our diversification of revenue streams. Net interest
income continues to be our largest source of revenue and now represents 48% of total net revenues. Net interest income is earned
primarily through lending, which includes margin, real estate and consumer loans, and by holding low cost deposits.
YearEndedDecember31,
Variance
2005
2004
2003
2005vs.2004
Revenues:
Commissions
27
%
29
%
32
%
(2
)
%
Principal transactions
6
9
8
(3
)
Gain on sales of loans and securities, net
6
9
18
(3
)
Service charges and fees
8
7
8
1
Other revenues
5
6
7
(1
)
Net interest income after provision for loan losses
48
40
27
8
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2006. EDGAR Online, Inc.