E*TRADE Financial Corporation Reports Monthly Activity for August 2011;; Provides Updates to Its Loan Delinquencies

Daily Average Revenue Trades (aDARTsa) for August were 193,546, a 34 percent increase from July and a 57 percent increase from the year-ago period. The company ended the month with approximately 2.8 million brokerage accounts a" including gross new brokerage accounts of 36,105 and net new brokerage accounts of 10,148 during the month. Total accounts ended the month at approximately 4.3 million.

Net new brokerage assets were positive $1.6 billion in the month. During the month, customer security holdings declined by four percent, or $4.9 billion, and brokerage-related cash declined by $1.7 billion to $26.0 billion, while customers were net purchasers of approximately $2.6 billion in securities. Bank-related cash and deposits decreased by $0.3 billion, ending the month at $8.0 billion.

The company also updated delinquency statistics in its loan portfolio. For the companya�s entire loan portfolio, total special mention delinquencies (30 to 89 days delinquent) increased 10 percent from June 30, 2011 to August 31, 2011 and increased four percent from July 31, 2011 to August 31, 2011, while total aat riska delinquencies (30 to 179 days delinquent) increased two percent from June 30, 2011 to August 31, 2011 and decreased one percent from July 31, 2011 to August 31, 2011. As part of the companya�s loss mitigation efforts, it employs certain servicers that specialize in handling higher risk mortgages. In the period that loans are transferred to such servicers there is typically an increase in delinquencies resulting from changes in the payment process. As discussed during the companya�s second quarter earnings call, it recently transferred $1.4 billion of loans to higher quality servicers, representing the companya�s largest transfer of this type. The company attributes the majority of the increase in August special mention delinquencies to this transfer. Historically, the majority of such increases in delinquencies have reversed during the following reporting period. Additional loan delinquency data is provided in the second table of this release.

Monthly Activity Data


	Aug-11		Jul-11		Aug-10		% Chg. M/M	% Chg. Y/Y


Trading days	23.0		20.0		22.0		N.M.	N.M.

DARTs	193,546		144,023		123,219		34.4%	57.1%

Gross new brokerage accounts	36,105		24,110		24,927		49.8%	44.8%
Gross new stock plan accounts	15,455		21,380		13,502		(27.7)%	14.5%
Gross new banking accounts	1,780		1,666		1,664		6.8%	7.0%
Total gross new accounts	53,340		47,156		40,093		13.1%	33.0%

Net new brokerage accounts	10,148		916		(1,416	)	N.M.	N.M.
Net new stock plan accounts	4,123		7,772		3,796		N.M.	N.M.
Net new banking accounts	(6,002	)	(2,936	)	(9,967	)	N.M.	N.M.
Net new accounts	8,269		5,752		(7,587	)	N.M.	N.M.

End of period brokerage accounts	2,770,837		2,760,689		2,652,620		0.4%	4.5%
End of period stock plan accounts	1,065,941		1,061,818		1,033,443		0.4%	3.1%
End of period banking accounts	475,629		481,631		544,999		(1.2)%	(12.7)%
End of period total accounts	4,312,407		4,304,138		4,231,062		0.2%	1.9%

Customer Assets ($B)
Security holdings	$ 119.9		$ 124.8		$ 101.9		(3.9)%	17.7%
Customer payables (cash)	5.3		5.8		3.8		(8.6)%	39.5%
Customer cash balances held by third parties	3.3		3.5		3.0		(5.7)%	10.0%
Unexercised stock plan customer options (vested)	18.9		21.9		14.6		(13.7)%	29.5%
Customer assets in brokerage and stock plan accounts	147.4		156.0		123.3		(5.5)%	19.5%
Sweep deposits	17.4		18.4		13.9		(5.4)%	25.2%
Savings, transaction and other	8.0		8.3		9.4		(3.6)%	(14.9)%
Customer assets in banking accounts	25.4		26.7		23.3		(4.9)%	9.0%
Total customer assets	$ 172.8		$ 182.7		$ 146.6		(5.4)%	17.9%

Net new brokerage assets ($B)⁽¹⁾	$ 1.6		$ 0.4		$ 0.4		N.M.	N.M.
Net new banking assets ($B)⁽¹⁾	(0.4	)	(0.1	)	(0.3	)	N.M.	N.M.
Net new customer assets ($B)⁽¹⁾	$ 1.2		$ 0.3		$ 0.1		N.M.	N.M.

Brokerage related cash ($B)	$ 26.0		$ 27.7		$ 20.7		(6.1)%	25.6%
Other customer cash and deposits ($B)	8.0		8.3		9.4		(3.6)%	(14.9)%
Total customer cash and deposits ($B)	$ 34.0		$ 36.0		$ 30.1		(5.6)%	13.0%

⁽¹⁾ Net new customer assets are total inflows to all new and existing customer accounts less total outflows from all closed and existing customer accounts. The net new banking assets and net new brokerage assets metrics treat asset flows between E*TRADE entities in the same manner as unrelated third party accounts.

Loan Delinquency Data



	Aug-11	Jul-11	Jun-11	% Chg. Aug 11 - Jul 11	% Chg. Jul 11 - Jun 11	% Chg. Aug 11 - Jun 11
One- to Four-Family ($MM)

Current	$ 6,066	$ 6,177	$ 6,277	(2)%	(2)%	(3)%
30-89 days delinquent	324	287	286	13%	0%	13%
90-179 days delinquent	146	165	167	(12)%	(1)%	(13)%
Total 30-179 days delinquent	470	452	453	4%	(0)%	4%
180+ days delinquent	582	613	645	(5)%	(5)%	(10)%
Total delinquent loans⁽¹⁾	1,052	1,065	1,098	(1)%	(3)%	(4)%
Gross loans receivable⁽²⁾	$ 7,118	$ 7,242	$ 7,375	(2)%	(2)%	(3)%

Home Equity ($MM)

Current	$ 5,398	$ 5,470	$ 5,579	(1)%	(2)%	(3)%
30-89 days delinquent	164	178	155	(8)%	15%	6%
90-179 days delinquent	107	113	116	(5)%	(3)%	(8)%
Total 30-179 days delinquent	271	291	271	(7)%	7%	0%
180+ days delinquent	52	51	51	2%	0%	2%
Total delinquent loans⁽¹⁾	323	342	322	(6)%	6%	0%
Gross loans receivable⁽²⁾	$ 5,721	$ 5,812	$ 5,901	(2)%	(2)%	(3)%

Consumer and Other ($MM)

Current	$ 1,206	$ 1,228	$ 1,254	(2)%	(2)%	(4)%
30-89 days delinquent	18	20	20	(10)%	0%	(10)%
90-179 days delinquent	5	5	4	0%	25%	25%
Total 30-179 days delinquent	23	25	24	(8)%	4%	(4)%
180+ days delinquent	-	-	-	0%	0%	0%
Total delinquent loans	23	25	24	(8)%	4%	(4)%
Gross loans receivable⁽²⁾	$ 1,229	$ 1,253	$ 1,278	(2)%	(2)%	(4)%

Total Loans Receivable ($MM)

Current	$ 12,670	$ 12,875	$ 13,110	(2)%	(2)%	(3)%
30-89 days delinquent	506	485	461	4%	5%	10%
90-179 days delinquent	258	283	287	(9)%	(1)%	(10)%
Total 30-179 days delinquent	764	768	748	(1)%	3%	2%
180+ days delinquent	634	664	696	(5)%	(5)%	(9)%
Total delinquent loans	1,398	1,432	1,444	(2)%	(1)%	(3)%
Gross loans receivable⁽²⁾	$ 14,068	$ 14,307	$ 14,554	(2)%	(2)%	(3)%

⁽¹⁾ Delinquent loans include charge-offs for loans that are in bankruptcy or are 180 days past due which have been written down to their fair value.

⁽²⁾ Includes unpaid principal balances and premiums (discounts).

Historical metrics and financials through August 2011 can be found on E*TRADE Financiala�s investor relations website at [ https://investor.etrade.com ].

About E*TRADE Financial

The E*TRADE Financial family of companies provides financial services including online brokerage and related banking products and services to retail investors. Specific business segments include Trading and Investing and Balance Sheet Management. Securities products and services are offered by E*TRADE Securities LLC (Member FINRA/SIPC). Bank products and services are offered by E*TRADE Bank, a Federal savings bank, Member FDIC, or its subsidiaries. More information is available at [ www.etrade.com ].

Important Notices

E*TRADE Financial, E*TRADE and the E*TRADE logo are trademarks or registered trademarks of E*TRADE Financial Corporation. ETFC-G

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E*TRADE Financial Corporation Reports Monthly Activity for August 2011;; Provides Updates to Its Loan Delinquencies