Exhibit 99.1

E*TRADE Financial Corporation Announces First Quarter 2011 Results

NEW YORK--(BUSINESS WIRE)--April 20, 2011--E*TRADE Financial Corporation (NASDAQ: ETFC):

First Quarter Results

• Net income of $45 million, or $0.16 per share, improved from $0.11 loss per share in prior quarter and $0.25 loss per share in first quarter 2010
• Total net revenue of $537 million, up from $518 million in prior quarter and flat compared with $537 million in first quarter 2010
• Provision for loan losses of $116 million, down from $194 million in prior quarter and down from $268 million in first quarter 2010
• Special mention delinquencies (30-89 days) down 14 percent from prior quarter; at-risk delinquencies (30-179 days) down 11 percent from prior quarter
• Daily Average Revenue Trades (DARTs) of 177,000, up 18 percent from prior quarter and up 14 percent from first quarter 2010
• Net new brokerage accounts of 51,000, up from 28,000 in prior quarter and 2,000 in first quarter 2010
• Net new brokerage assets of $3.9 billion, up from $2.4 billion in prior quarter and $2.2 billion in first quarter 2010

E*TRADE Financial Corporation (NASDAQ: ETFC) today announced results for its first quarter ended March 31, 2011, reporting net income of $45 million, or $0.16 per share, compared with a net loss of $24 million, or $0.11 loss per share, in the prior quarter and a net loss of $48 million, or $0.25 loss per share, in the first quarter of 2010. The company reported total net revenue of $537 million for the first quarter, compared with $518 million in the prior quarter and $537 million in the year-ago period.

“E*TRADE is off to a terrific start in 2011,” said Steven Freiberg, Chief Executive Officer of E*TRADE Financial Corporation. “Our first quarter results benefited from strength in our brokerage franchise, growth in both interest and non-interest revenue, positive loan performance trends and ongoing expense management. We reported impressive sequential and year-over-year growth in DARTs, brokerage accounts and margin receivables, and net new brokerage assets of $3.9 billion were the highest we’ve ever recorded. With increased capacity to invest in the franchise, continued improvement in loan performance trends and a focus on expenses, E*TRADE is well positioned for growth.”

E*TRADE reported DARTs of 177,000 during the quarter, an increase of 18 percent from the prior quarter and an increase of 14 percent versus the same quarter a year ago.

At quarter end, the company reported 4.3 million customer accounts, which included 2.7 million brokerage accounts. Net new brokerage accounts were 51,000 during the quarter compared with 28,000 in the prior quarter and 2,000 in the first quarter of 2010.

The company ended the quarter with $189 billion in total customer assets, compared with $176 billion in the prior quarter.

During the quarter, net new brokerage assets were positive $3.9 billion, the highest level on record by the company. Brokerage related cash increased by $1.4 billion to $25.9 billion during the period, while customers were net buyers of approximately $2.3 billion of securities. Average margin receivables increased 10 percent sequentially from $4.9 billion to $5.4 billion.

Net operating interest income for the first quarter was $310 million, reflecting a net interest spread of 2.84 percent on average interest-earning assets of $42.7 billion. The $5 million sequential increase in net operating interest income resulted from a $1.3 billion increase in average interest-earning assets, reflecting the increase in brokerage customer cash.

Commissions, fees and service charges, principal transactions, and other revenue in the first quarter were $201 million, compared with $181 million in the fourth quarter of 2010. This reflected the sequential increase in trading activity. Average commission per trade was $11.32, a slight decline sequentially from $11.37 in the fourth quarter.

Total net revenue in the quarter also included $26 million of net gains on loans and securities, including net impairment of $6 million.

Total operating expense declined two percent, or $7 million, to $298 million from the prior quarter, and included a seasonal increase in advertising spend and $4 million in restructuring expenses. Mr. Freiberg commented: “We are committed to managing expenses in line with 2010 levels, while, at the same time, investing in the franchise. Our advertising spend is driving meaningful results and our sales force, which we plan to grow by 35 percent this year, is focused on building and extending relationships with retail investors and with corporate clients of our equity compensation solutions business. We believe these initiatives will drive profitable growth and shareholder value.”

The company’s loan portfolio contracted by $0.9 billion from the prior quarter, including $0.7 billion related to prepayments or scheduled principal reductions. First quarter provision for loan losses decreased $78 million from the prior quarter to $116 million.

Net charge-offs in the quarter were $194 million, a decrease of $2 million from the prior quarter. The allowance for loan losses remained at $1.0 billion, or six percent of gross loans receivable, at quarter end.

For the company’s entire loan portfolio, special mention delinquencies declined by 14 percent, and at-risk delinquencies declined by 11 percent in the quarter. As compared to the year-ago period, special mention delinquencies declined 34 percent and at-risk delinquencies declined 33 percent.

As of March 31, 2011, the company reported E*TRADE Bank Tier 1 capital ratios of 7.54 percent to total adjusted assets and 14.29 percent to risk-weighted assets. E*TRADE Bank had excess risk-based total capital (i.e., above the level regulators define as well-capitalized) of $1.3 billion at quarter end.

Historical metrics and financials through March 2011 can be found on the E*TRADE Financial Investor Relations website at https://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 800-683-1525 and 973-872-3197 for international participants. The conference ID number is 55555314. A live audio webcast and replay of this conference call will also be available at https://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. 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 are based on current expectations that are subject to a number of uncertainties and risks, and actual results may differ materially. Such statements include those relating to the ability of the company to build and extend relationships with retail investors and corporate clients, invest in our franchise and grow our sales force, drive profitable growth and shareholder value, manage expenses in line with 2010 levels, and continue progress in our legacy loan portfolio. The uncertainties and risks include, but are not limited to, potential changes in market activity, anticipated changes in the rate of new customer acquisition, 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 the Office of Thrift Supervision 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 (“SEC”) (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.

© 2011 E*TRADE Financial Corporation. All rights reserved.

SUPPLEMENTAL INFORMATION

Reporting Changes

All prior periods have been adjusted to reflect the Company’s 1-for-10 reverse stock split that became effective in the second quarter of 2010. See endnote (1) for line items that have been impacted by this change.

Explanation of Non-GAAP Measures and Certain Metrics

Management believes that tangible book value per share, corporate cash, EBITDA, interest coverage and Bank earnings before taxes and before credit losses 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 our current performance, prospects and valuation. Management uses non-GAAP information internally to evaluate our operating performance and in formulating our 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 (6) 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 our regulated subsidiaries. See our 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 our performance by excluding certain non-cash charges and expenses that are not directly related to the performance of our 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 our ability to continue to meet our interest obligations and our liquidity. See endnote (8) 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 FHLB advances. 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 (9) for a reconciliation of this non-GAAP measure to the comparable GAAP measure.

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 our 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) All prior periods have been adjusted to reflect the Company’s 1-for-10 reverse stock split that became effective in the second quarter of 2010. Financial information impacted by this capital change includes EPS, weighted average shares, outstanding shares, common stock and APIC.

(2) Because the Company reported a net loss for the three months ended December 31, 2010 and March 31, 2010, the calculation of diluted net loss per share does not include common stock equivalents as they are anti-dilutive and would result in a reduction of net loss per share.

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

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

(5) 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.

(6) 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 thousands, except per share amounts):

(7) 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.

(8) 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 was 1.0, (0.6) and (1.2) for the three months ended March 31, 2011, December 31, 2010 and March 31, 2010, respectively.

(9) 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 FHLB advances. 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 loss before income taxes (dollars in thousands):

^(a) Excess risk-based capital is the excess capital that E*TRADE Bank has compared to the regulatory minimum well-capitalized threshold.

^(b) Non-bank loss represents all of the Company’s subsidiaries, including Corporate, but excluding the Bank.

(10) These metrics have been updated for prior periods to exclude international local activity.

(11) 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.

(12) Capital ratios are at the E*TRADE Bank level. The ratios and excess capital amounts are Q111 estimates based on the regulatory minimum well-capitalized threshold. Below is a reconciliation of beginning E*TRADE Bank excess risk-based capital to ending E*TRADE Bank excess risk-based capital for the quarterly periods presented:

^(a) The capital release from loan portfolio run-off includes the decrease in risk-based capital required for our one- to four-family, home equity and consumer loan portfolios.

^(b) Represents cash flows to and from the parent company.

^(c) Represents the capital impact related to changes in other risk-weighted assets.

(13) Delinquent loans include charge-offs for loans that are in bankruptcy or are 180 days past due which have been written down to their fair 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):

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

(15) The TDR loan performance detail is a subset of the Company’s total loan performance.

(16) The total expected loss on TDRs includes both the previously recorded charge-offs and the specific valuation allowance.

(17) Excludes loans to customers on margin.

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

(19) Includes interest earned on average customer assets of $3.6 billion, $3.3 billion and $3.1 billion for the quarters ended March 31, 2011, December 31, 2010 and March 31, 2010, respectively, held by parties outside E*TRADE Financial, including third party money market funds and sweep deposit accounts at unaffiliated financial institutions.

CONTACT:
E*TRADE Financial Media Relations Contact
Susan Hickey, 646-521-4675
susan.hickey@etrade.com
or
E*TRADE Financial Investor Relations Contact
Brett Goodman, 646-521-4406
brett.goodman@etrade.com