TD Waterhouse Group, Inc. is reporting cash earnings of 1¢ per share on revenues of $230 million for the fourth quarter ended October 31, compared to 14¢ last year (All amounts in U.S. dollars.)

“Fiscal year 2001 was a tough one for the online brokerage sector and the continued deterioration in the fourth fiscal quarter compounded the already difficult operating conditions. Over the past year, our business and our financial performance have been significantly affected by our customers’ understandable hesitancy to invest,” said CEO Steve McDonald.

Cash earnings from operations decreased 95% from the fourth quarter last year to $2.4 million.

On a reported basis a net loss for the quarter of $7.5 million compares to net income last year of $42.2 million.

Total revenue of $230 million decreased 36% from the fourth quarter last year as the impact of reduced trading by customers and reduced borrowing through margin loans more than offset growth in mutual fund and related revenue.

Commissions and fees declined 44% to $115 million as revenue trades per day decreased 42%.

Commissions per revenue trade of $21.37 were 3% higher than last year’s $20.80, reflecting increased pricing in the U.S. in the fourth quarter 2001, and offset in part by online penetration which increased to 76% in the quarter, compared to 72% in fourth quarter last year.

Mutual fund and related revenue grew 15% reflecting growth in money market mutual funds and FDIC-insured money market deposits which totaled $18 billion at October 31, 2001 versus $15 billion a year ago. Total funds and deposits at October 31, 2001 were $38.8 billion, up slightly from a year ago.

Net interest declined 43% as average margin loans were $3.8 billion this quarter compared to $8.2 billion in the same quarter last year.