 E*TRADE Financial Corporation Raymond James 34 Annual Institutional Investors Conference Matthew Audette, Chief Financial Officer March 5, 2013 © 2013 E*TRADE Financial Corporation all rights reserved. Exhibit 99.1 th |
 © 2013 E*TRADE Financial Corporation all rights reserved 2 Safe Harbor Statement This presentation contains certain forward-looking statements regarding our business strategy and the related impact, our strategic and capital plans, certain deleveraging and cost-savings initiatives, the continuation of current trends, future events and the future performance of the Company. E*TRADE claims the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995 for all forward- looking statements. Various factors, including risks and uncertainties referred to in the 10-K, 10-Q and other reports the Company periodically files with the SEC, could cause our actual results to differ materially from those indicated by our projections or other forward-looking statements. Non-GAAP Financial Measures In addition to financial results prepared in accordance with Generally Accepted Accounting Principles, or GAAP, this presentation will also contain certain non-GAAP financial measures. Management uses these non-GAAP measures to evaluate our performance and in planning for future periods. Management believes that adjusting GAAP measures by excluding or including certain items is helpful to investors and analysts who may wish to use some or all of this information to analyze our current performance, prospects and valuation. It is important to note these non-GAAP measures involve judgment by management and should be considered in addition to, not as a substitute for, the most directly comparable measures calculated and prepared in accordance with GAAP. Investors and potential investors are encouraged to review the reconciliation of non-GAAP financial measures with their most direct comparable GAAP financial measures included as an appendix to this presentation. This presentation presents data as of December 31, 2012, unless otherwise indicated. Notice to investors |
 © 2013 E*TRADE Financial Corporation all rights reserved 3 Business strategy Improve market position in retail brokerage • Accelerate growth of the customer franchise • Continue to enhance the customer experience, improve satisfaction and retention Capitalize on value of complementary brokerage businesses • Corporate Services Group • Market making operations Enhance position in retirement & investing • Expand brand position for awareness and preference • Grow customer share of wallet Continue to manage and de-risk the Bank • Mitigate credit losses on legacy loan portfolio and enhance risk profile • Build out enterprise risk management capabilities Strengthen overall financial and franchise position • Improve capital ratios through de-risking and de-leveraging • Focus on ultimately deploying excess Bank capital to parent to pay off corporate debt • Increase focus on cost reductions and efficiencies: Targeting $110M in run-rate reductions |
 © 2013 E*TRADE Financial Corporation all rights reserved 4 ($ M) 2012 Driver Long-term impact of current strategy Revenue $1,899 $2,161 Provision ($354) $0 Servicing ($60) $0 FDIC expenses ($117) ($59) Other operating expenses ($985) ($985) Expenses, total ($1,162) ($1,044) Operating income $383 $1,117 Corporate interest expense ($180) $0 Other ($77) $(77) Pre-tax income $126 $1,040 Should reduce to $0 as excess Bank capital is deployed to parent to pay off corporate debt Net interest spread should improve to 300bps with normalized rate environment Should reduce to $0 as legacy portfolio runs off Should reduce to $0 as legacy portfolio runs off Should reduce by half as risk profile improves Strengthen overall financial and franchise position Long-term impact of current strategy to improve earnings (1) |
 © 2013 E*TRADE Financial Corporation all rights reserved 5 Strengthen overall financial and franchise position Focused on deleveraging to improve most constraining ratio: Tier 1 leverage Capital ratios as of 12/31/12 Bank Parent Well- capitalized threshold Total capital to risk-weighted assets (3) 20.6% 13.7% 10.0% Tier 1 capital to risk-weighted assets (3) 19.3% 12.5% 6.0% Tier 1 common (4) 19.3% 10.3% 7.0% Tier 1 leverage (3) 8.7% 5.5% 5.0% Reducing balance sheet size / improving leverage ratio is integral to the successful execution of the Capital Plan Strategic and Capital Plan submitted to Fed and OCC • Outlines assumptions for capital levels and distributions under various operating conditions over the next 5 years • Includes assumption that Bank begins distributing capital to Parent by the end of 2013 • Plan assumes Bank will dividend capital to Parent above Tier 1 leverage ratio of 9.5% • 9.5% target decreases by 50 bps each year beginning in 2014, ultimately settling at 8.0% Bank excess capital / Corporate debt (5) (6) |
 © 2013 E*TRADE Financial Corporation all rights reserved 6 Drivers of change in balance sheet size Focused on deleveraging to improve most constraining ratio: Tier 1 leverage Strengthen overall financial and franchise position Identified or Completed Deleveraging Actions 2012 Q1 2013 Q2 2013 TOTAL Transfer sweep deposits off balance sheet $1,700 $2,300 $500 $4,500 Direct new customer cash to money funds $800 $400 $1,200 Reduce wholesale borrowings $1,500 $1,500 Convert customer payables to money funds $900 $100 $1,000 Total $4,900 $2,800 $500 $8,200 Tier 1 Leverage ratio: Bank | Parent 8.7% | 5.5% |
 © 2013 E*TRADE Financial Corporation all rights reserved 7 Strengthen overall financial and franchise position Debt refinancing to significantly improve cash flow and reduce interest burden • Lowest Senior Note coupons in the Company’s history • Improves annual earnings by approximately $60M or $0.21 per share (7) • Improves debt service coverage ratio for parent cash to 3.7X from 2.5X • Lengthens maturity profile, eliminating nearest maturity and extending weighted average maturity by +1 year • Call features allow prepayment flexibility Transaction benefits Transaction overview • Launched transaction to refinance debt on 11/5 • Successfully raised $1.3B in Senior Notes – closed on 11/14 • Issued call notice for $930M of Springing Lien Notes due 2017 and $243M of 7.875% Senior Notes due 2015 • Called notes were extinguished on 12/1/2012 |
 © 2013 E*TRADE Financial Corporation all rights reserved 8 Consolidated DTA of $1.4B ($0.4B at parent; $1.0B at Bank) Ability to include more in regulatory capital with ongoing profitability Source of corporate cash as subsidiaries reimburse the parent for use of its DTA Approximately 15 years to use; expect to utilize the full amount Strengthen overall financial and franchise position Deferred tax asset: Embedded value realized with ongoing profitability |
 © 2013 E*TRADE Financial Corporation all rights reserved 9 Committed to grow as a recognized leader with iconic brand and advertizing Improve market position in retail brokerage |
 © 2013 E*TRADE Financial Corporation all rights reserved 10 Improve market position in retail brokerage Lower attrition Increase net new assets / share of wallet Grow high quality account base Increase asset-based and commission- based revenue Key initiatives to drive success • Create leading online broker experience: • E*TRADE.com • E*TRADE 360 • E*TRADE Mobile • Education & research • E*TRADE Community • Focus on customer dissatisfiers • Continuous process improvements • Expand brand as a trusted retirement and investing provider • Deliver retirement advice & planning: • Financial Consultants • Online planning tools • Managed Products • Increase awareness of needs- based investing solutions: • Mutual funds • Fixed income • ETFs • Deepen relationships with high-potential customers Improve Improve customer experience customer experience Grow retirement Grow retirement & investing & investing Enhance retail Enhance retail trading offering trading offering • Deliver best-in-class trading experience: • E*TRADE.com • E*TRADE Pro • E*TRADE Mobile • Expand product engagement through: • Platform enhancements • Idea generating tools • Education for all traders on products, platforms, strategies and risk management |
 © 2013 E*TRADE Financial Corporation all rights reserved 11 Improve market position in retail brokerage Accelerate growth of the customer franchise |
 © 2013 E*TRADE Financial Corporation all rights reserved 12 Improve market position in retail brokerage Accelerate growth of the customer franchise |
 © 2013 E*TRADE Financial Corporation all rights reserved 13 Financial Consultant network highlights Increased Financial Consultant headcount by 40% since year-end 2010 Estimated 12% share of our customers’ investible assets (36% for active traders; 10% for investors) (15) Identified segments best served by proactive engagement with Financial Consultants — 1-year post assignment seeing significant improvement in engagement and retention Accounts & assets $34.6 billion in retirement assets 20% of $173 billion of brokerage-related assets 799k retirement accounts 28% of brokerage accounts $1.3 billion in managed accounts (3 years post inception) 8,100+ mutual funds — 4,600 no-load — 6,900 NTF 80+ Comm. Free 50,000+ bonds Managed Accounts (MIP & UMA) Chartered Retirement Planning Counselors #1 ranking in Kiplinger’s 2012 Best Online Brokers - five stars in Investment Choices and Customer Service Retirement education Integrated into advertising Headcount of 270 Increased asset penetration 1 year post assignment Complementary retirement & portfolio consultations Products † Services Financial Consultants Enhance position in retirement & investing † Unified Managed Accounts and Managed Investment Portfolios are offered by E*TRADE Capital Management SM Every ETF sold |
 © 2013 E*TRADE Financial Corporation all rights reserved 14 Corporate Services Group Build on market leadership with 1,000+ corporate stock plan clients Award-winning platform – Equity Edge Online – rated #1 in Overall Satisfaction and Loyalty in the 2012 Group Five Stock Plan Administration Study Industry Report Strategically important channel for new brokerage accounts, accounting for 25-30% of gross new accounts 1.1 million accounts; $22B in vested and $47B in unvested options Proceeds retention of 35%+ 3 months post exercise, and 15%+ 12 months post exercise Market making business Leading market share in ADRs; growing market share in National Market Securities Growing base of external customers, comprising 45+ external clients (30% y/y growth), and accounting for approximately half of market making revenue Capitalize on value of complementary brokerage businesses TM (16) |
 © 2013 E*TRADE Financial Corporation all rights reserved 15 Improvement in asset composition… …Funding mix also continues to improve • Legacy loan portfolio now accounts for less than 30% of average interest-earning assets, down from 55% in Q3 2007 • Average loan portfolio balances are down 66% from peak in Q3 2007 • Bank risk weighted assets are down 44% from peak in Q3 2007, while average total assets are down 27% • More expensive wholesale funding channel now accounts for only 16% of average interest-bearing liabilities, down from 38% at its peak in Q3 2007 • Average wholesale funding is down 70% from its peak in Q3 2007 • Balance sheet strategy going forward is liability-driven, by brokerage cash Favorable mix shift in assets (lower risk) and liabilities (lower-cost) Continue to manage and de-risk the Bank |
 © 2013 E*TRADE Financial Corporation all rights reserved 16 ($ B) Loan balance 9/30/07 (17) Paydowns (18) Charge-offs Loan balance 12/31/12 (17) Average age 1-4 Family loans $17 ($10) ($1) $6 6.7 yrs Home equity $12 ($5) ($3) $4 6.9 yrs Consumer $3 ($2) ($0) $1 9.0 yrs TOTAL $32 ($17) ($4) $11 Continue to manage and de-risk the Bank Mitigate credit losses on legacy loan portfolio |
 © 2013 E*TRADE Financial Corporation all rights reserved 17 Coverage of non-modified loans Coverage of modified loans Components of allowance for loan losses Specific Valuation Allowance Continue to manage and de-risk the Bank Mitigate credit losses on legacy loan portfolio 0.0 0.5 1.0 1.5 2.0 Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012 Q2 2012 Q3 2012 Q4 2012 90+ days past due non-modified loans General reserve as a % of 90+ days past due non-modified (20) 0.0 0.5 1.0 1.5 2.0 Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012 Q2 2012 Q3 2012 Q4 2012 Total expected losses on modified loans Modified loans General reserve Prior charge-offs Qualitative reserve = Accounts for factors not directly considered in our quantitative model = Expected losses over remaining life of modified loans = Expected losses over next 12 months for non-modified loans 0% 20% 40% 60% 80% 0% 20% 40% 60% 80% loans |
 © 2013 E*TRADE Financial Corporation all rights reserved 18 Continue to manage and de-risk the Bank Visibility into future drivers of credit costs • Less than 1% of all 1-4 family loans resetting in 2013 are expected to experience a payment increase of more than 10% • Nearly 83% of 1-4 family loans resetting in 2013 are expected to reset to a lower payment • Average loan size: $458k • 85% of non-TDR portfolio is adjustable for rate or amortization • Approximately $2.6B, or 53% of the portfolio, has previously reset for the first time • Approximately 80% of home equity loans are lines of credit, the majority of which do not begin to amortize until 2015 or later, and balances continue to decline • Lines of credit are generally structured as 5-10 year draw period, followed by 10-20 year amortization period • Average loan size: $75k (21) • Approximately 40% of HELOC borrowers in their draw period made meaningful voluntary principal reductions in 2012 of at least $500 • Approximately half of those borrowers (20%) reduced their principal balance by at least $2,500 during 2012 |
 © 2013 E*TRADE Financial Corporation all rights reserved 19 Continue to manage and de-risk the Bank • Deleveraging actions and resulting smaller balance sheet • Proactive and scheduled reduction of wholesale borrowings • Runoff of higher yielding legacy loan portfolio • Declining marginal reinvestment rate on agency securities Current drivers of net interest spread |
       © 2013 E*TRADE Financial Corporation all rights reserved 20 • Prolonged low interest rate environment • Home prices • Weak consumer / investor confidence • Heightened regulatory sensitivity Environmental Challenges • Mitigate credit losses on legacy loan portfolio • Execute on all aspects of the Strategic Plan • Obtain regulatory approval to distribute capital from Bank to Parent • Build out enterprise risk management capabilities E*TRADE Challenges • Accelerate growth of customer franchise • Expand brand as a trusted retirement and investing provider • Cost reduction / efficiency gains E*TRADE Opportunities Challenges and opportunities |
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 © 2013 E*TRADE Financial Corporation all rights reserved 22 Appendix |
 © 2013 E*TRADE Financial Corporation all rights reserved 23 Appendix |
 © 2013 E*TRADE Financial Corporation all rights reserved 24 Appendix |