E-Trade Financial Corp. has reported another drop in loan delinquencies and announced plans to restructure its international operations as it focuses on its core U.S. online brokerage.
Within that business, E-Trade reported lower monthly trading volumes. Client trades at E-Trade, like those at peers Charles Schwab Corp. and TD Ameritrade Holding Corp., fell last month as investors locked in some of their gains from the market rally that began in March.
More important for investors, E-Trade continued to show improving credit trends within its bank unit's mortgage portfolio.
E-Trade said Wednesday that loans delinquent by 30 to 89 days, or "special-mention delinquencies," declined 3% from Sept. 30 to Nov. 30, and that delinquencies of 30 to 179 days, known as "at-risk delinquencies," fell 2%. In its home equity portfolio, where it has its greatest exposure to losses, E-Trade said delinquencies fell 8% for special-mention loans and 5% for loans deemed "at-risk."
The company also said it will restructure its international operations by getting out of local-market trading in which customers living outside the U.S. trade in non-U.S. securities. It has deals to sell such operations in Germany and the Nordic region.
In a press release, E-Trade Chairman and Chief Executive Donald Layton said the company continues "to sharpen our focus on products and markets where our business has strong margins and competitive advantage."