Axos Financial, Inc. Fixed Income Investor Presentation
E*TRADE Advisor Services Acquisition
Axos Clearing acquired certain assets and deposits related to E*TRADE Advisor Services
(EAS) - closed August 2, 2021
(1)
1) $55 million cash purchase price paid at closing from Axos Financial
2) Includes $24.8 billion of custodial assets & ~$1.2 billion low-cost deposits
3) Accelerates time-to-scale in RIA custody business
4) Adds new sources of fee income and services that compliment Axos Clearing's
product offering
5) Own proprietary front- and back-end RIA custody technology platform
6) Rebranded Axos Advisor Services (AAS)
Strategic and Financial Benefits
1) Adds a turnkey technology platform to generate low-cost core deposits
2) Increases Axos' non-interest income by 33% (1)
3) Provides cross-sell opportunities across securities clearing, deposit & lending
products to 200+ advisors and 153,000+ wealth management clients
4) Conversion to broker-dealer platform unlocks incremental revenue
opportunities
axos
5) Accretive to EPS - projected 1% accretion in FY 2022 and 5% in FY 2023
6) Tangible book value earn-back in ~3 years
Based on Axos' FY 2021 non-interest income (excluding HRB-related fees) of $94mm and EAS calendar year 2020 fee-based revenues of $31.3mm.
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