Exhibit 99.1

E*TRADE Financial Corporation Announces First Quarter 2013 Results

NEW YORK--(BUSINESS WIRE)--April 18, 2013--E*TRADE Financial Corporation (NASDAQ: ETFC):

First Quarter Results

• Net income of $35 million, or $0.12 per share on total net revenue of $420 million
• Provision for loan losses of $43 million, including a $13 million benefit from a settlement with a third party mortgage originator
• Total operating expenses of $296 million, including $12 million in severance and restructuring costs
• Balance sheet reduction of $2.4 billion, primarily driven by approximately $3.0 billion in deleveraging and $1.2 billion of customer net buying
• Daily Average Revenue Trades (DARTs) of 149,000
• Net new brokerage accounts of 30,000
• Net new brokerage assets of $3.1 billion; end of period customer assets of $219 billion

E*TRADE Financial Corporation (NASDAQ: ETFC) today announced results for its first quarter ended March 31, 2013, reporting net income of $35 million, or $0.12 per share. This compares with a net loss of $186 million, or $0.65 loss per share in the prior quarter, and net income of $63 million, or $0.22 per share in the first quarter of 2012. The Company reported total net revenue of $420 million for the first quarter of 2013, compared with $468 million in the prior quarter and $489 million in the first quarter of 2012.

“The first quarter was encouraging, as we posted solid sequential growth in customer engagement, accounts, and assets,” said Paul Idzik, Chief Executive Officer. “With the advantage of a well-defined plan to de-risk and de-leverage, and solid execution against it, I am directing my efforts toward ensuring the core business is our dominant focus. I see a meaningful opportunity for E*TRADE – both in terms of driving a superior customer experience, and in creating value for shareholders – and I look forward to leading the Company through this phase of its growth.”

E*TRADE reported DARTs of 149,000 during the quarter, an increase of 16 percent from the prior quarter and a decrease of five percent versus the same quarter a year ago.

At quarter end, the Company reported 4.5 million customer accounts, which included 2.9 million brokerage accounts. Net new brokerage accounts were 30,000 during the quarter compared with 10,000 in the prior quarter and 46,000 in the first quarter of 2012.

The Company ended the quarter with $219 billion in total customer assets, compared with $201 billion at the end of the fourth quarter of 2012 and $202 billion from the year-ago period.

During the quarter, customers added $3.1 billion in net new brokerage assets. Brokerage related cash increased by $0.8 billion to $34.7 billion during the period, while customers were net buyers of approximately $1.2 billion of securities. Margin receivables averaged $5.7 billion in the quarter, down two percent sequentially and up 16 percent year over year, ending the quarter at $5.7 billion.

Net operating interest income for the first quarter was $241 million, down from $260 million in the prior quarter and $285 million a year ago. First quarter results reflected a net interest spread of 2.30 percent on average interest-earning assets of $40.9 billion, compared with a net interest spread of 2.38 percent on average interest-earning assets of $42.9 billion in the prior quarter.

Commissions, fees and service charges, principal transactions, and other revenue in the first quarter were $164 million, compared with $151 million in the prior quarter and $173 million in the first quarter of 2012. Average commission per trade for the quarter was $11.30, compared to $11.10 in the prior quarter, and $11.04 in the first quarter of 2012.

Total net revenue in the quarter also included $15 million of net gains on loans and securities, including a net impairment of $1 million, compared with $56 million in the prior quarter, which included gains related to securities sold to reduce assets.

Total operating expenses for the quarter increased $10 million sequentially to $296 million. Expenses included $12 million in severance and restructuring costs.

Total assets ended the quarter at $45.0 billion, decreasing $2.4 billion from the prior quarter, as the Company directed approximately $3.0 billion in brokerage-related customer cash to select third party institutions, consisting of $2.3 billion in sweep deposits, $0.1 billion in customer payables and $0.6 billion from newly-opened accounts. With the addition of $0.5 billion of sweep deposits scheduled for transfer to a third party this month, the Company will have completed approximately $8.4 billion in balance sheet deleveraging, tracking to its target of $8.5 billion.

The Company’s loan portfolio ended the quarter at $10.0 billion, contracting approximately $0.5 billion from the prior quarter. First quarter provision for loan losses decreased from $74 million in the prior quarter to $43 million. Provision for loan losses included a benefit of $13 million related to a settlement with a third party mortgage originator.

Net charge-offs in the quarter were $68 million, a decrease of $34 million from the prior quarter. The allowance for loan losses at quarter-end was $455 million, down $26 million from the previous quarter.

For the Company’s entire loan portfolio, special mention delinquencies decreased nine percent sequentially, and total at-risk delinquencies decreased eight percent versus the fourth quarter of 2012. As compared to the year-ago period, special mention delinquencies declined 17 percent and total at-risk delinquencies declined 19 percent.

As of March 31, 2013, the Company reported consolidated Tier 1 leverage and total risk-based ratios⁽¹⁾ of 6.0 percent and 14.8 percent, respectively; increasing from 5.5 percent and 13.7 percent in the prior period. The Company’s consolidated Tier 1 common ratio⁽²⁾ ended the quarter at 11.2 percent, improving from 10.3 percent in the prior period. E*TRADE Bank ended the quarter with Tier 1 leverage and total risk-based capital ratios⁽³⁾ of 9.3 percent and 21.9 percent, rising from 8.7 percent and 20.6 percent, respectively, at the end of the prior period.

Historical metrics and financials can be found on the E*TRADE Financial Investor Relations website at investor.etrade.com.

The Company will host a conference call to discuss the results beginning at 5:00 p.m. EDT today. This conference call will be available to domestic participants by dialing 800-732-8470 while international participants should dial +1 212-231-2902. A live audio webcast and replay of this conference call will also be available at investor.etrade.com.

About E*TRADE Financial

The E*TRADE Financial family of companies provides financial services including online brokerage and related banking products and services to retail investors. Specific business segments include Trading and Investing and Balance Sheet Management. Securities products and services are offered by E*TRADE Securities LLC (Member FINRA/SIPC). Bank products and services are offered by E*TRADE Bank, a Federal savings bank, Member FDIC, or its subsidiaries and affiliates. More information is available at www.etrade.com. ETFC-E

Important Notices

E*TRADE Financial, E*TRADE and the E*TRADE logo are trademarks or registered trademarks of E*TRADE Financial Corporation.

Forward-Looking Statements: The statements contained in this news release that are forward looking, including statements regarding our ability to drive a superior customer experience, create shareholder value, and to de-risk and deleverage our balance sheet, are subject to a number of uncertainties and risks, and actual results may differ materially. The uncertainties and risks include, but are not limited to, our potential inability to reduce our balance sheet and costs, potential changes in market activity, anticipated changes in the rate of new customer acquisition and in rate of net acquisition of brokerage accounts and assets, macro trends of the economy in general and the residential real estate market, instability in the consumer credit markets and credit trends, increased mortgage loan delinquency and default rates, portfolio growth, portfolio seasoning and resolution through collections, sales or charge-offs, the uncertainty surrounding the foreclosure process, and the potential negative regulatory consequences resulting from the implementation of financial regulatory reform as well as from actions by or potentially more restrictive policies or interpretations of the Federal Reserve and the Office of the Comptroller of the Currency or other regulators. Further information about these risks and uncertainties can be found in the annual, quarterly, and current reports on Form 10-K, Form 10-Q, and Form 8-K previously filed by E*TRADE Financial Corporation with the Securities and Exchange Commission (including information in these reports under the caption “Risk Factors”). Any forward-looking statement included in this release speaks only as of the date of this communication; the Company disclaims any obligation to update any information.

© 2013 E*TRADE Financial Corporation. All rights reserved.

Financial Statements

Segment Reporting

Key Performance Metrics⁽⁵⁾

Activity in Allowance for Loan Losses

Specific Valuation Allowance Activity⁽¹⁹⁾

Average Enterprise Balance Sheet Data

Explanation of Non-GAAP Measures and Certain Metrics

Management believes that tangible book value per share, corporate cash, EBITDA, interest coverage, Bank earnings before taxes and before credit losses, E*TRADE Bank Tier 1 common ratio and E*TRADE Financial ratios are appropriate measures for evaluating the operating and liquidity performance of the Company. 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 the Company’s current performance, prospects and valuation. Management uses non-GAAP information internally to evaluate operating performance and in formulating the budget for future periods.

Tangible Book Value per Share

Tangible book value per share represents shareholders’ equity less goodwill (net of related deferred tax liability) and other intangible assets divided by common stock outstanding. The Company believes that tangible book value per share is a measure of the Company’s capital strength. See endnote (7) for a reconciliation of this non-GAAP measure to the comparable GAAP measure.

Corporate Cash

Corporate cash represents cash held at the parent company as well as cash held in certain subsidiaries that can distribute cash to the parent company without any regulatory approval. The Company believes that corporate cash is a useful measure of the parent company’s liquidity as it is the primary source of capital above and beyond the capital deployed in regulated subsidiaries. See the Company’s financial statements and “Management’s Discussion and Analysis of Results of Operations and Financial Condition” that will be included in the periodic report the Company expects to file with the SEC with respect to the financial periods discussed herein for a reconciliation of this non-GAAP measure to the comparable GAAP measure.

EBITDA

EBITDA represents net income (loss) before taxes, depreciation and amortization and corporate interest expense. Management believes that EBITDA provides a useful additional measure of the Company’s performance by excluding certain non-cash charges and expenses that are not directly related to the performance of the business.

Interest Coverage

Interest coverage represents EBITDA divided by corporate interest expense. Management believes that by excluding the charges and expenses that are excluded from EBITDA, interest coverage provides a useful additional measure of the Company’s ability to continue to meet interest obligations and liquidity needs. See endnote (9) for a reconciliation of this non-GAAP measure to the comparable GAAP measure.

Bank Earnings Before Taxes and Before Credit Losses

Bank earnings before taxes and before credit losses represents the pre-tax earnings of E*TRADE Bank’s holding company, ETB Holdings, Inc. (“Bank”) before provision for loan losses, gains on loans and securities, net, net impairment and losses on early extinguishment of wholesale borrowings. This metric shows the amount of earnings that the Bank, after accruing for the interest expense on its trust preferred securities, generates each quarter prior to credit related losses, primarily provision and losses on securities. Management believes this non-GAAP measure is useful to investors and analysts as it is an indicator of the level of credit related losses the Bank can absorb without causing a decline in E*TRADE Bank’s excess risk-based capital. See endnote (10) for a reconciliation of this non-GAAP measure to the comparable GAAP measure.

E*TRADE Bank Tier 1 Common Ratio and E*TRADE Financial Ratios

E*TRADE Financial ratios, including Tier 1 leverage, Tier 1 risk-based capital and total risk-based capital ratios, are based on the Federal Reserve regulatory minimum well-capitalized threshold. E*TRADE Bank’s and E*TRADE Financial’s Tier 1 common ratios are defined as the Tier 1 capital less elements of Tier 1 capital that are not in the form of common equity, such as trust preferred securities, divided by total risk-weighted assets. Management believes these ratios are an important measure of E*TRADE Bank’s and the Company’s capital strength. See endnotes (1), (2) and (17) for reconciliations of these non-GAAP measures to the comparable GAAP measures.

It is important to note these metrics and other non-GAAP measures may involve judgment by management and should be considered in addition to, not as a substitute for, or superior to, net income (loss), consolidated statements of cash flows, or other measures of financial performance prepared in accordance with GAAP. For additional information on the adjustments to these non-GAAP measures, please see the Company’s financial statements and “Management’s Discussion and Analysis of Results of Operations and Financial Condition” that will be included in the periodic report the Company expects to file with the SEC with respect to the financial periods discussed herein.

ENDNOTES

(1) The Tier 1 leverage, Tier 1 risk-based capital and total risk-based capital ratios at E*TRADE Financial are Q113 estimates based on the Federal Reserve regulatory minimum well-capitalized requirements. E*TRADE Financial is not currently subject to capital requirements; however, the implementation of holding company capital requirements are expected to become effective in 2015 as a result of the Dodd-Frank Act. Management believes these ratios are an important measure of the Company's capital strength and accordingly manages capital against the current capital ratios that apply to bank holding companies in preparation for the application of these requirements. The Tier 1 leverage, Tier 1 risk-based capital and total risk-based capital ratios are calculated as follows (dollars in millions):

(2) The Tier 1 common ratio at E*TRADE Financial is a Q113 estimate and is a non-GAAP measure. Management believes this ratio is an important measure of the Company's capital strength. The Tier 1 common ratio is calculated as follows (dollars in millions):

(3) The Tier 1 leverage, Tier 1 risk-based capital and total risk-based capital ratios at E*TRADE Bank are Q113 estimates and calculated as follows (dollars in millions):

(4) Reflects elimination of transactions between Trading and Investing and Balance Sheet Management segments, which includes deposit and intercompany transfer pricing arrangements.

(5) Amounts and percentages may not calculate due to rounding.

(6) Operating margin is the percentage of net revenue that results in income (loss) before other income (expense) and income taxes. The percentage is calculated by dividing income (loss) before other income (expense) and income taxes by total net revenue.

(7) The following tables provide a reconciliation of GAAP book value and book value per share to non-GAAP tangible book value and tangible book value per share (dollars in millions, except per share amounts):

(8) Enterprise net interest spread is the taxable equivalent rate earned on average enterprise interest-earning assets less the rate paid on average enterprise interest-bearing liabilities, excluding corporate interest-earning assets and liabilities and customer cash held by third parties.

(9) Interest coverage represents the ratio of the Company’s EBITDA to its corporate interest expense. The interest coverage ratio based on the Company’s net income (loss) was 1.2, (4.2), and 1.4 for the three months ended March 31, 2013, December 31, 2012, and March 31, 2012, respectively.

(10) Bank earnings before taxes and before credit losses represents the pre-tax earnings of E*TRADE Bank’s holding company, ETB Holdings, Inc. (“Bank”) before provision for loan losses, gains on loans and securities, net, net impairment and losses on early extinguishment of wholesale borrowings. This metric shows the amount of earnings that the Bank, after accruing for the interest expense on its trust preferred securities, generates each quarter prior to credit related losses, primarily provision and loss on securities. Management believes this non-GAAP measure is useful to investors and analysts as it is an indicator of the level of credit related losses the Bank can absorb without causing a decline in E*TRADE Bank’s excess risk-based capital^(a). Below is a reconciliation of Bank earnings before taxes and before credit losses from income (loss) before income taxes (dollars in millions)

(11) The brokerage account attrition rate is calculated by dividing attriting brokerage accounts, which are gross new brokerage accounts less net new brokerage accounts, by total brokerage accounts at the previous period end. This rate is presented on an annualized basis.

(12) Customer cash balances held by third parties are held outside E*TRADE Financial and include money market funds and sweep deposit accounts at unaffiliated financial institutions.

(13) Net new customer assets are total inflows to all new and existing customer accounts less total outflows from all closed and existing customer accounts. The net new banking assets and net new brokerage assets metrics treat asset flows between E*TRADE entities in the same manner as unrelated third party accounts.

(14) Delinquent loans include charge-offs for loans that are in bankruptcy or are 180 days past due which have been written down to their expected recovery value. The following table shows the total amount of charge-offs on loans that are still held by the Company as of the periods presented (dollars in millions):

(15) Includes unpaid principal balances and premiums (discounts).

(16) The TDR loan performance detail is a subset of the Company’s total loan performance. TDRs include loan modifications performed under the Company’s modification programs. Beginning in Q412, loans that had been charged-off due to bankruptcy notification were also considered TDRs.

(17) The Tier 1 common ratio at E*TRADE Bank is a Q113 estimate and is a non-GAAP measure. Management believes this ratio is an important measure of E*TRADE Bank's capital strength. The E*TRADE Bank Tier 1 common ratio is calculated as follows (dollars in millions):

(18) E*TRADE Bank excess capital amounts are Q113 estimates based on the regulatory minimum well-capitalized threshold. Below is a reconciliation of beginning to ending E*TRADE Bank excess risk-based capital for the quarterly periods presented:

(19) Modifications are a subset of TDRs, and represent loan modifications performed under the Company’s modification programs. They do not include loans that have been charged-off due to the Company receiving notification of bankruptcy if the loan has not been modified previously by the Company. The following table shows the reconciliation of total TDRs that had a modification and those which the Company received a notification of bankruptcy (dollars in millions):

(20) The total expected losses on modifications includes both the previously recorded charge-offs and the specific valuation allowance.

(21) Excludes loans to customers on margin.

(22) Gross-up for tax-exempt securities.

(23) Includes interest earned on average customer assets of $9.5 billion, $5.9 billion, and $4.0 billion for the quarters ended March 31, 2013, December 31, 2012, and March 31, 2012, respectively, held by third parties outside E*TRADE Financial, including money market funds and sweep deposit accounts at unaffiliated financial institutions.

CONTACT:
E*TRADE Financial Media Relations
646-521-4418
mediainq@etrade.com
or
E*TRADE Financial Investor Relations
Brett Goodman, 646-521-4406
brett.goodman@etrade.com