OMAHA, Neb. (AP) — A surge in trading activity at the end of 2013 helped online brokerage TD Ameritrade record a 31 percent jump in its quarterly profit as the economy continued improving and Congress avoided another budget stalemate.
Company officials said stock market activity picked up in the last three months of last year as the outlook for the economy and the federal budget grew clearer. Investors also appreciated that the Federal Reserve held off on cutting its stimulus until December.
TD Ameritrade handled an average of 413,743 trades per day in the last three months of 2013, up from 334,035 per day in 2012. The S&P 500 gained 9.9 percent in the last three months of the year, pushing the gains for the index to almost 30 percent for the year.
"We feel good about how the year is shaping up. Virtually every metric we measure and manage is trending in the right direction," TD Ameritrade President and CEO Fred Tomczyk said Tuesday.
Shares of the Omaha, Neb., based company rose $1.46, or 4.5 percent, to $33.87 in afternoon trading.
TD Ameritrade reported net income of $192 million, or 35 cents per share, during the October-December quarter. That's up from $147 million, or 27 cents per share, a year ago.
TD Ameritrade Holding Corp.'s fiscal first-quarter revenue rose nearly 16 percent to $752 million revenue from last year's $651 million.
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