eTrade 2010 Annual Report Download - page 44

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Enterprise net interest spread increased by 20 basis points to 2.72% for the year ended December 31, 2009
compared to 2008. This increase was largely driven by a decrease in the yields paid on our deposits and lower
wholesale borrowing costs, partially offset by a decrease in higher yielding enterprise interest-earning assets.
Commissions
Commissions increased 6% to $548.0 million for the year ended December 31, 2009 compared to 2008. Our
DART volume increased 6% to 179,183 for the year ended December 31, 2009 compared to 2008. Option-related
DARTs as a percentage of our total DARTs represented 13% and 15% of trading volume for the years
December 31, 2009 and 2008, respectively. Exchange-traded funds-related DARTs as a percentage of our total
DARTs represented 14% and 11% of trading volume for the years ended December 31, 2009 and 2008,
respectively.
Average commission per trade increased 3% to $11.33 for the year ended December 31, 2009 compared to
2008. The increase in the average commission per trade for the year ended December 31, 2009 was primarily due
to an improvement in product and customer mix compared to 2008.
Fees and Service Charges
Fees and service charges decreased 4% to $192.5 million for the year ended December 31, 2009 compared
to 2008. The decline was driven by a decrease in account service fee and advisory management fee revenue,
which was partially offset by an increase in order flow revenue compared to 2008. The decrease in advisory
management fees was primarily due to the sale of an advisor business in the second quarter of 2008. Declines in
foreign currency margin revenue, fixed income product revenue and mutual fund fees also contributed to the
decrease in fees and service charges.
Principal Transactions
Principal transactions increased 4% to $88.1 million for the year ended December 31, 2009 compared to
2008. The increase in principal transactions was driven by an increase in the volume of equity shares that were
traded, which was partially offset by a decrease in our average revenue earned per share traded for the year ended
December 31, 2009.
Gains (Losses) on Loans and Securities, Net
Gains (losses) on loans and securities, net were gains of $169.1 million and losses of $100.5 million for the
years ended December 31, 2009 and 2008, respectively, as shown in the following table (dollars in millions):
Variance
Year Ended December 31, 2009 vs. 2008
2009 2008 Amount %
Losses on sales of loans, net $ (12.5) $ (0.8) $ (11.7) 1496%
Gains on available-for-sale securities and other investments, net 173.2 32.4 140.8 435%
Gains (losses) on trading securities, net 7.8 (134.3) 142.1 *
Hedge ineffectiveness 0.6 2.2 (1.6) (74)%
Gains (losses) on securities, net 181.6 (99.7) 281.3 *
Gains (losses) on loans and securities, net $169.1 $(100.5) $269.6 *
* Percentage not meaningful.
Gains on loans and securities, net for the year ended December 31, 2009, were due primarily to gains on the
sale of certain agency mortgage-backed securities, which were partially offset by net losses on the sales of loans.
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