E*TRADE Financial Corporation Reports Monthly Activity for May 2012;; Provides Updates to Its Loan Delinquencies

NEW YORK--([ BUSINESS WIRE ])--E*TRADE Financial Corporation (NASDAQ: ETFC) today released its Monthly Activity Report for May 2012.

Daily Average Revenue Trades (aDARTsa) for May were 146,254, flat with April and a five percent decrease from the year-ago period. The Company added 43,040 gross new brokerage accounts in May, ending the month with approximately 2.9 million brokerage accounts a" an increase of 28,140 from April. Total accounts ended the month at approximately 4.4 million.

Net new brokerage assets were positive $1.3 billion in the month. During the month, customer security holdings decreased by six percent, or $7.8 billion, and brokerage-related cash decreased by $0.6 billion to $29.3 billion, as customers were net buyers of approximately $1.9 billion in securities. Bank-related cash and deposits decreased by $0.2 billion, ending the month at $7.5 billion.

The Company also updated delinquency statistics in its loan portfolio. For the Companyas entire loan portfolio; total special mention delinquencies (30 to 89 days delinquent) decreased five percent from March 31, 2012 to May 31, 2012 and increased four percent from April 30, 2012 to May 31, 2012, while total aat riska delinquencies (30 to 179 days delinquent) decreased three percent from March 31, 2012 to May 31, 2012 and increased four percent from April 30, 2012 to May 31, 2012. Additional loan delinquency data is provided in the second table of this release.

Monthly Activity Data

	May-12		Apr-12		May-11		% Chg. M/M	% Chg. Y/Y


Trading days		22.0		20.0		21.0	N.M.	N.M.

DARTs		146,254		145,769		153,943	0.3 %	(5.0)%

Gross new brokerage accounts		43,040		36,060		28,895	19.4 %	49.0 %
Gross new stock plan accounts		14,050		14,452		12,894	(2.8)%	9.0 %
Gross new banking accounts		1,449		1,592		1,856	(9.0)%	(21.9)%
Total gross new accounts		58,539		52,104		43,645	12.4 %	34.1 %

Net new brokerage accounts		28,140		9,305		4,520	N.M.	N.M.
Net new stock plan accounts		4,633		4,664		(2,210)	N.M.	N.M.
Net new banking accounts		(3,623)		(3,219)		(4,682)	N.M.	N.M.
Net new accounts		29,150		10,750		(2,372)	N.M.	N.M.

End of period brokerage accounts		2,866,451		2,838,311		2,757,192	1.0 %	4.0 %
End of period stock plan accounts		1,090,700		1,086,067		1,054,598	0.4 %	3.4 %
End of period banking accounts		449,231		452,854		489,217	(0.8)%	(8.2)%
End of period total accounts		4,406,382		4,377,232		4,301,007	0.7 %	2.5 %

Customer Assets ($B)
Security holdings	$	130.3	$	138.1	$	131.1	(5.6)%	(0.6)%
Customer payables (cash)		5.1		5.3		5.4	(3.8)%	(5.6)%
Customer cash balances held by third parties		3.6		3.7		3.5	(2.7)%	2.9 %
Unexercised stock plan customer options (vested)		20.7		24.0		24.8	(13.8)%	(16.5)%
Customer assets in brokerage and stock plan accounts		159.7		171.1		164.8	(6.7)%	(3.1)%
Sweep deposits		20.6		20.9		17.6	(1.4)%	17.0 %
Savings, transaction and other		7.5		7.7		8.5	(2.6)%	(11.8)%
Customer assets in banking accounts		28.1		28.6		26.1	(1.7)%	7.7 %
Total customer assets	$	187.8	$	199.7	$	190.9	(6.0)%	(1.6)%

Net new brokerage assets ($B)⁽¹⁾	$	1.3	$	0.4	$	0.6	N.M.	N.M.
Net new banking assets ($B)⁽¹⁾		(0.2)		(0.2)		(0.1)	N.M.	N.M.
Net new customer assets ($B)⁽¹⁾	$	1.1	$	0.2	$	0.5	N.M.	N.M.

Brokerage related cash ($B)	$	29.3	$	29.9	$	26.5	(2.0)%	10.6 %
Other customer cash and deposits ($B)		7.5		7.7		8.5	(2.6)%	(11.8)%
Total customer cash and deposits ($B)	$	36.8	$	37.6	$	35.0	(2.1)%	5.1 %

Customer net (purchase) / sell activity ($B)	$	(1.9)	$	(1.6)	$	(0.4)	N.M.	N.M.

(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

	May-12		Apr-12		Mar-12		% Chg. May 12 - Apr 12	% Chg. Apr 12 - Mar 12	% Chg. May 12 - Mar 12
One- to Four-Family ($MM)

Current	$	5,399	$	5,490	$	5,543	(2)%	(1)%	(3)%
30-89 days delinquent		236		225		252	5 %	(11)%	(6)%
90-179 days delinquent		116		111		114	5 %	(3)%	2 %
Total 30-179 days delinquent		352		336		366	5 %	(8)%	(4)%
180+ days delinquent		366		388		413	(6)%	(6)%	(11)%
Total delinquent loans⁽¹⁾		718		724		779	(1)%	(7)%	(8)%
Gross loans receivable⁽²⁾	$	6,117	$	6,214	$	6,322	(2)%	(2)%	(3)%

Home Equity ($MM)

Current	$	4,617	$	4,702	$	4,776	(2)%	(2)%	(3)%
30-89 days delinquent		104		102		106	2 %	(4)%	(2)%
90-179 days delinquent		75		74		80	1 %	(8)%	(6)%
Total 30-179 days delinquent		179		176		186	2 %	(5)%	(4)%
180+ days delinquent		47		49		49	(4)%	0 %	(4)%
Total delinquent loans⁽¹⁾		226		225		235	0 %	(4)%	(4)%
Gross loans receivable⁽²⁾	$	4,843	$	4,927	$	5,011	(2)%	(2)%	(3)%

Consumer and Other ($MM)

Current	$	976	$	999	$	1,021	(2)%	(2)%	(4)%
30-89 days delinquent		18		18		17	0 %	6 %	6 %
90-179 days delinquent		5		4		5	25 %	(20)%	0 %
Total 30-179 days delinquent		23		22		22	5 %	0 %	5 %
180+ days delinquent		-		-		-	N.M.	N.M.	N.M.
Total delinquent loans		23		22		22	5 %	0 %	5 %
Gross loans receivable⁽²⁾	$	999	$	1,021	$	1,043	(2)%	(2)%	(4)%

Total Loans Receivable ($MM)

Current	$	10,992	$	11,191	$	11,340	(2)%	(1)%	(3)%
30-89 days delinquent		358		345		375	4 %	(8)%	(5)%
90-179 days delinquent		196		189		199	4 %	(5)%	(2)%
Total 30-179 days delinquent		554		534		574	4 %	(7)%	(3)%
180+ days delinquent		413		437		462	(5)%	(5)%	(11)%
Total delinquent loans⁽¹⁾		967		971		1,036	(0)%	(6)%	(7)%
Total gross loans receivable⁽²⁾	$	11,959	$	12,162	$	12,376	(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 expected recovery value.

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

Historical metrics and financials can be found on E*TRADE Financialas 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 May 2012;; Provides Updates to Its Loan Delinquencies