E-Trade up in premarket on strength in retail franchise

NEW YORK, Jun 30, 2008 (Thomson Financial via COMTEX) -- ET | Quote | Chart | News | PowerRating -- E-Trade Financial traded up in premarket trading after the company said it was seeing strong second-quarter performance from its retail franchise.

The unit is generating earnings that will absorb credit losses above the company's current three-year forecast, it said, though it added that the overall credit environment was still "challenging."

E-Trade expects excess risk-based capital to near $1 billion by the end of the year.

The financial services company said its parent company reduced debt by $95.8 million in the second quarter, bringing its total year-to-date debt reduction by $155.8 million. The debt reduction in the quarter came through a series of debt-for-equity exchanges, it said.

Shares of E-Trade closed Friday at $3.10 but rose 1.6% to $3.15 in premarket trading on Monday.

The stock is down 86% over the past 52 weeks. Ryan Vlastelica rv/tk1

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