eTrade 2008 Annual Report Download - page 29

Launch of Global Trading Platform
We launched our Global Trading Platform, which provides the ability to buy, sell and hold foreign equities
in local currencies to investors who seek liquidity and diversity in their portfolios. Our U.S. customers now have
access to foreign stocks and currencies in six major international markets: Canada, France, Germany, Hong
Kong, Japan and the United Kingdom.
Introduction of the Max-Rate Checking Account
E*TRADE Bank introduced a Max-Rate Checking Account which features an annual percentage yield up to
3.25%, unlimited check writing and free online bill pay, among other benefits.
Ranked #1 Premium Broker by SmartMoney Magazine
SmartMoney Magazine recognized the Company as the #1 “premium broker” in its 2007 broker survey.
SmartMoney noted the Company for its improved service, new global trading capabilities, intuitive trade tools
and easy search capabilities and numerous banking products.
Summary Financial Results
Income Statement Highlights for the Year Ended December 31, 2008 (dollars in millions, except per share
amounts)
Year Ended December 31, Variance
2008 2007 2008 vs. 2007
Net operating interest income $1,268.0 $ 1,583.6 (20)%
Total net revenue $1,925.6 $ 161.7 *
Provision for loan losses $1,583.7 $ 640.1 147%
Commission revenue $ 515.6 $ 663.6 (22)%
Fees and service charges revenue $ 200.0 $ 230.6 (13)%
Operating margin $ (948.3) $(2,052.2) (54)%
Net loss from continuing operations $ (809.4) $(1,442.3) (44)%
Net loss $ (511.8) $(1,441.8) (65)%
Diluted net loss per share from continuing operations $ (1.58) $ (3.40) (54)%
Diluted net loss per share $ (1.00) $ (3.40) (71)%
* Percentage not meaningful.
The continued deterioration in the residential real estate and credit markets, as well as the nearly
unprecedented turmoil in the global financial markets, had a significant impact on our financial performance
during 2008. The losses in our institutional segment caused by this deterioration more than offset the strong
underlying performance of our retail segment, resulting in a net loss from continuing operations of $809.4
million for the year ended December 31, 2008. Our retail customer base showed positive growth trends during
the year, including the addition of approximately 246,000 net new accounts and net inflows of customer assets of
approximately $5.4 billion. We believe these are indications that our retail segment has not only stabilized, but
has returned to modest growth.
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