TD Ameritrade Holding Corp. today reported a 14% drop in fiscal fourth-quarter net income as the financial crisis and the declining stock market took a big bite out of client assets.

The U.S.-based online broker is a unit of TD Bank Financial Group.

For the quarter ended Sept. 30, the posted net income of US$172 million, or 29¢ a share, down from US$200.4 million, or 33¢ a share, a year earlier.

The latest results include US$35.6 million in money-market losses, primarily for reimbursing clients for losses in the Reserve Primary Fund. The company had projected up to $50 million in such charges.

Net revenue climbed 13% to US$649.2 million from US$575.2 million.

Return on equity, an important profitability measure, slid to 24.2% from 38.8%.

TD Bank Financial Group said it expects TD Ameritrade’s fourth quarter earnings to translate into a contribution of $60 million to fourth quarter net income for its wealth management segment.

TD Bank will release its fourth quarter financial results on Dec. 4.

IE