Source: The Canadian Press

TD Ameritrade Holding Corp. (NASDAQ:AMTD) has reported net income of US$163 million or 27 cents per share in its second quarter, and cut its earnings outlook for the year because of low interest rates and less active trading.

The earnings were up from $132 million, or 23 cents per share, a year ago.

The U.S. discount brokerage, partly owned by Canada’s TD Bank (TSX:TD), said it now expects earnings per share of 90 cents to $1.10, a decrease from the $1.10 to $1.40 prediction it made last fall.

The brokerage said it expects to feel the impact of slower trading activity during the spring and summer, as well as low interest rates for much of this year.

TD Ameritrade said its second quarter earnings were worth 23 cents when “excluding the favourable resolution of certain income tax matters” which included a one-time tax benefit from the acquisition of Thinkorswim Inc. Analysts expected 24 cents a share excluding one-time items.

Revenues were $635.4 million for the period ended March 31, above analyst predictions of $631.7 million.

TD Bank, which owns about 40% of Ameritrade, said that the brokerage is expected to contribute net income of C$56 million to the bank’s second quarter earnings for its wealth management division when it reports on May 27.

IE