eTrade 2007 Annual Report Download - page 36
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The decrease in the total gain (loss) on loans and securities, net during the year ended December 31, 2007
was due primarily to the $2.2 billion loss on the sale of our asset-backed securities portfolio in the fourth quarter
of 2007.
Other Revenue
Other revenue increased 36% to $47.5 million for the year ended December 31, 2007 compared to the same
period in 2006. The increase in other revenue was due to an increase in the cash surrender value of Bank-Owned
Life Insurance (BOLI), an increase in fees earned in connection with distribution of shares during initial public
offerings and software consulting fees from our Corporate Services business.
Expense Excluding Interest
The components of expense excluding interest and the year-over-year variances are as follows (dollars in
thousands):
Year Ended December 31,
Variance
2007 vs. 2006
2007 2006 Amount %
Compensation and benefits $ 465,467 $ 469,202 $ (3,735) (1)%
Clearing and servicing 286,144 253,040 33,104 13 %
Advertising and marketing development 149,573 119,782 29,791 25 %
Communications 107,526 110,346 (2,820) (3)%
Professional services 106,691 96,947 9,744 10 %
Depreciation and amortization 85,371 73,845 11,526 16 %
Occupancy and equipment 93,189 85,568 7,621 9 %
Amortization of other intangibles 40,472 46,220 (5,748) (12)%
Impairment of goodwill 101,208 — 101,208 *
Facility restructuring and other exit activities 33,226 28,537 4,689 16 %
Other 207,569 136,042 71,527 53 %
Total expense excluding interest $1,676,436 $1,419,529 $256,907 18 %
* Percentage not meaningful.
Expense excluding interest increased 18% to $1.7 billion for the year ended December 31, 2007 compared
to 2006. The increase in expense excluding interest was driven primarily by increases in clearing and servicing,
advertising and marketing development, impairment of goodwill and other expense.
Compensation and Benefits
Compensation and benefits decreased 1% to $465.5 million for the year ended December 31, 2007
compared to the same period in 2006. The slight decrease resulted primarily from lower incentive based
compensation in the current year.
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