E-Trade Group Inc. and Telebanc Financial Corp. separately announced strong quarterly earnings results on Wednesday, setting the stage for healthy growth as they pursue their plan to become a one-stop shop for on-line financial services.

E-Trade's better-than-expected earnings and Telebanc's 328% gain in quarterly net income bode well for the combined company, which officially came into being Jan. 12 when the Office of Thrift Supervision approved the merger of E-Trade's Internet brokerage with Telebanc's branchless bank. "We are sure that the whole will be greater than the sum of the parts," said Kathy Levinson, president and chief operating officer at E-Trade Group.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.