E TRADE Financial Corp (ETFC)

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E-Trade reports quarterly net loss of $50.5 million

By Alistair Barr
Last update: 4:06 p.m. EDT Oct. 21, 2008
SAN FRANCISCO (MarketWatch) -- E-Trade Financial Corp. (ETFC:e trade financial corp com
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Last: 2.30-0.03-1.29%

3:59pm 10/21/2008

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ETFC 2.30, -0.03, -1.3%) late Tuesday reported a third-quarter net loss of $50.5 million, or nine cents a share. That compares to a net loss of $58.4 million, or 14 cents a share, a year earlier. The discount brokerage firm realized roughly $660 million in gains from sales of non-core assets, such as its Canadian business, during the latest quarter. Losses from continuing operations in the third quarter reached 60 cents a share, the company added. E-Trade was expected to lose 24 cents a share in the period, according to the average estimate of 13 analysts in a FactSet survey. E-Trade set aside $518 million in provisions to cover loan losses in the latest quarter. That was up by $199 million from the previous quarter. The company increased its forecast for losses from its home equity portfolio by 20% for 2008 through 2010. E-Trade said provisions probably peaked in the third quarter and charge-offs will begin to improve in 2009. However, it said it doesn't expect to make a profit in the fourth quarter of 2008.