OMAHA, Neb. (AP) — TD Ameritrade's CEO says the economy has improved considerably and investors are more confident, but conditions could still deteriorate.
Fred Tomczyk told shareholders Wednesday that TD Ameritrade is in good shape to handle whatever the economy does, and the company's profits should continue to improve along with the stock market and interest rates.
The Omaha, Neb.-based company is thriving because it has been able to remain the leader in handling online trades while attracting $556 billion in client assets as of the end of its fiscal year on Sept. 30. TD Ameritrade is also generating some revenue from education and advice fees.
"In almost any type of environment, we can survive and do decent," Tomczyk said. "But when things take off — particularly the interest rates — we'll do very, very well."
Tomczyk said the company will remain focused on its long-term goals and won't try to boost short-term results artificially as interest rates rise.
At the end of the company's 2013 fiscal year, he said TD Ameritrade was handling 374,000 trades per day, and 39 percent of those were derivatives. It also held $556 billion in client assets.
TD Ameritrade generates revenue from trading fees, investment advice fees and asset-based fees and interest on the client assets it holds.
Last year, Ameritrade's net income grew more than 15 percent to $675 million, or $1.22 per share, on revenue of $2.8 billion. That's up from $586 million net income, or $1.06 per share, on revenue of $2.6 billion in 2012.
Tomczyk said the company will continue working to increase revenue and limit expenses. He said it will also continue investing in technology — both to power its trading platform and to protect its systems from hackers.
Tomczyk said the financial industry shares information about security threats and defenses to help protect client assets and preserve confidence in the system. "It's a constant battle," Tomczyk said.
The company's shareholders re-elected three directors, approved TD Ameritrade's auditing firm and endorsed its compensation policies Wednesday at the annual meeting.
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TD Ameritrade Holding Corp.: www.amtd.com